Are you considering hiring a nanny to support your family’s needs? If so, we have some tips for you. It’s a very competitive market right now for childcare and we want to set you up for success! Educated Nannies is happy to provide information and support on how to find the most qualified and experienced nanny for your family. Nannies are a household employee once hired and many employers will offer their nanny some options for a compensation package. Offering a wide range of benefits can help you attract exceptional candidates for your part-time or full-time needs!
Mileage Reimbursement
Many nannies will use their personal vehicle to assist with school pick up/drop off, activities and errands. If they are using their own vehicle, they should be getting reimbursed for the expenses that occur. The IRS sets the legal rate for non-taxable mileage reimbursement each year.
Health Insurance
Employers can offer their nanny health insurance with a few different options to consider. They have the option to contribute directly to their nanny’s health insurance premiums and treat it as non-taxable compensation meaning the amount the employer pays will not be subject to taxes for both the employer and nanny. Another option is to offer a QSERHA (Qualified Small Employer Health Reimbursement Arrangements). This caters to small businesses or household employers of less than 50 that are not offering a group health insurance and can reimburse up to $5,050 for a single health plan or $10,250 for a family health plan. The employee must provide proof of their healthcare costs so the employer can offer a monthly allowance to cover the costs. This information will then be reported on the nanny’s W-2 tax form.
Educational Assistance
Many nannies working with children will want to continue learning and growing their childcare knowledge though a variety educational classes. An employer can help with expenses such as books, supplies, tuition, and fees as these will be considered nontaxable expenses up to $5,250. Employers also have the chance to use the Coronavirus Aid, Relief and Economic Security Act (CARES) which can help pay for an employee’s student loans on a pretax basis. The CARES act will be available until January 1, 2026.
Paid Time Off
Everyone enjoys a day off here and there or may find themselves ill and need some time off work unexpectedly. Employers in Los Angeles are required to provide at least 48 hours or six paid sick days per year. Many employers will often provide a minimum of two weeks paid time off for their full-time nanny. One important thing to note is that paid time off does not always include holidays. The employer can decide if they would like to pay the nanny for federal holidays, however most families offer 6-8 paid holidays.
Annual Bonuses
Everyone likes to be recognized for their work at monthly and yearly reviews in the workplace and nannies are no different! Consider offering your nanny a raise at an annual review or a gift of appreciation. Some great gift ideas are gift cards to their favorite store or restaurant. Another option is a subscription to a streaming service they are interested in or meal service plan!
Guaranteed Hours and Pay
When it comes to a nanny’s schedule, guaranteed hours and pay are a great benefit to offer. For example, if the employer goes on vacation and does not bring the nanny along, they should continue to pay at the nanny’s regular wage. You may also find that some days there is a shift in schedule and the nanny may not be needed for the entire scheduled shift. In this case, the nanny should still be paid out for the day or guaranteed number of hours agreed on.
Whether you are searching for a nanny, personal assistant, or household manager these are some great benefits to offer your household employee. Educated Nannies is always available to offer any kind support you may have when finding the perfect employee for your home!
