Is hiring a nanny costly? What could be the possible charges, and what should be the payment mode?
It depends on where you reside, if it is a posh city or town then definitely the charges would be slight higher. And also what are the chances of availability of a qualified nanny, a stiff competition gives you the liberty to bargain a little over the charges, otherwise you have to give-in to her demands. The charges can vary somewhere in $350 to $700 per week, if you are looking for a nanny on a full time basis. But if you are willing to provide a suitable accommodation, that can cut-down your charges.
You can also Share your nanny with some other family, those who have same requirements (This can be also called as share nanny plan) this can lower your nanny charges.
Since babysitting is considered as a job therefore a nanny is considered to be your employee. So paying for your nanny's medical insurance is a condition which you may or may not abide by. In case you are willing to provide your nanny with this facility, then your nanny will have the option to choose which insurance plan will be suitable for her. However this could be a big blow on your pocket. But you can also opt to pay half of the insurance charge and let your nanny pay the other half.
But if you choose not to pay for your nanny's medical insurance or any other expense, then you can increase the salary a little as a substitute.
But if you don't want to pay for your nanny's medical plan, then at least you can offer to pay the expenses for your nanny's routine check-up, dental check-ups. There are also some other options as well such as paying your nanny for sick leaves she has taken, paying for her vacations .
Paying your nanny on an hourly basis is also an option, but the wage is fixed at $7.25 for an hour - you cannot lower it. However this varies in different states, in some states it is slight higher to $20 per hour, it can also rise.
If you have decided a weekly pay for your nanny then you can calculate the charges by dividing the amount by the duration of hours you expect your nanny to work, if the charges are lower than the fixed wage, then you should give an increment in salary.
Paying tax for hiring a nanny is optional, you can pay tax for it, or you can also choose not to pay it. But remember if you choose not to pay then you do it at your own risk. If the paper work is stopping you to pay the tax then you can hire people who are in these kinds of jobs.