Nanny Payroll - Negotiate the Nanny Salary

Negotiating a salary is never a comfortable situation; both parties involved will be looking for what is best for them, individually.  The key to establishing a good relationship with your household employee right from the beginning, and to succeed in the negotiation, is to think like you are part of a “Win Win” situation, where both parties win and are happy with the result.  A happy household employee will perform better and make your life easier – That’s a fact!

As a household payroll company, we often field phone calls from families asking for salary survey type information and for assistance with what benefits, if any, to offer to their new employees.  Wages for household employees vary tremendously from one state to another, and even between metropolitan area and more suburban areas in the same state.  Experience, recommendations, certifications, courses taken, etc … will play an important role as well.  To find out the nanny salaries in your area, please visit the International Nanny Association’s Salary Survey. Our most important advice – ALWAYS STATE YOUR HOUSEHOLD WORKER’S WAGE IN DOLLARS PER HOUR!

Now, let’s talk about benefits.  Household employers are not required by Federal law to offer Paid Time Off, Holidays, Sick Time, Health Insurance or any other benefit to their employees, although some states do require household employers to offer limited benefits.  Bear in mind, nannies are often looking for, and will stay in, positions where they are offered better rates and benefits. Wouldn’t you? Experts recommend that some holiday pay and paid time off be offered as part of a full time nanny's compensation package.

It is also important to keep in mind that your nanny is the one who will be taking care of your child. If the best candidate for your family is a financial stretch – not unreasonably so – please pause and reevaluate other budget priorities. Perhaps you can find another discretionary area where you can cut expenditures. This of course is a very personal decision.  Don’t get me wrong … I just want to point out that the nanny who will be with your child day in and day out and from whom they will learn many early skills is an important investment in their lives.  

We all know there is a big difference between a qualified nanny and a baby-sitter.  The professional nanny knows her value and you will too, when you see the result in your own child.

Before you negotiate:

• Consider baseline Nanny Experience and Qualifications – Knowing your minimum qualifications ahead of time will help with candidate review. If you require a college degree, expect to pay more. 
• Be informed about Nanny Salaries in your area – This will help you be reasonable and realistic when making an offer.
• Ask for your candidate’s desired pay rate – This will give you the opportunity to talk about the “Nanny Taxes” and help her understand her paycheck.  We’ve got your back, click below for our video “Understanding your paycheck.”

Do you have any other tips to share with the industry?  Please leave a comment and share your knowledge with us!

Vanessa Vidal, FPC
HomeWork Solutions Inc.
Your Nanny Payroll and Tax Experts