Nanny Salaries, Taxes, & Benefits

Can I Afford a Nanny?

WSN nanny candidates are invited to set their own asking rate, and as a hiring family you'll have a chance to review their rate (or rate range) prior to inviting them for an interview. Current market rates in the Seattle area range from about $18-28/hour and of course vary greatly depending on a candidate's experience and skills, as well as on the details of the position itself.

 

Families should plan to pay their nanny above board, and should budget for  associated employment-related expenses. Check out Our Partners at HomePay for everything you need to know about household employment and what it means for your family (and your checkbook!).

 

Permanent Full-Time Nanny Compensation Should Include:

  • A Written Nanny Work Agreement 

  • Competitive Market Rate of Pay

  • Guaranteed Minimum Hours & Wages

  • Overtime Pay (1.5x Hourly Rate) for All Hours in Excess of 40 Per Week

  • Paid Time Off (Typically 1-2 Weeks/Annually)

  • Mileage Reimbursement and/or Vehicle Provided for On-The-Job Driving

  • Health Coverage or Stipend (Optional)

 

Taxes and Employment

Nannies are NOT independent contractors, but are employees of the family for whom they work. For this reason, parents who employ a nanny must take the steps necessary to establish themselves as legitimate employers. These steps include securing a Federal Identification Number with the IRS (by completing form SS-4) and obtaining an employer identification number from the state in which the family resides (by contacting the state office that handles employment). Parents may also have to report “a new hire” with the office that handles employment in the state where the family resides.Federal law also requires that all nanny employers pay a portion of their employee’s Social Security taxes, state unemployment taxes, and in some states, workers’ compensation.Parents must also file the proper year end tax forms and supply their nanny with a W-2 form by January 31st of each year. Parents must also file form W-3 with the Social Security Administration by February 28th of each year.

 

Westside Nanny is proud to partner with HomePay to offer payroll and tax assistance for employers and employees! HomePay specializes in domestic employement and are the industry leaders in providing such services. We highly recommend that our clients reach out to HomePay when they're ready to hire the perfect nanny for their family!