How do you split costs for a nanny share?
The basic formula for calculating a nanny share is to take the nanny’s typical hourly rate, and have both families pay 2/3rds. For example, if a nanny is making $16/hour, each family would pay about $10/hour, leaving the nanny with a $20/hour position.
What does a nanny share mean?
A nanny share is an arrangement where two or more families split the cost of one nanny who either cares for all of the children together or divides her time between the two families.
How many children are in a nanny share?
Q: How many children altogether can take part in a nanny share? A: Louise and Kathy both agree that usually 3 to 4 children is the maximum and only with two families. Just remember, the more kids and more families that are involved, the more management and communication it takes.
How does a nanny share work for families?
In a typical nanny share, two (sometimes more) families hire one nanny to care for their children. The nanny usually cares for all the children in one of the family’s homes. Sometimes the location is rotated between the families involved in the nanny share. A nanny share helps make in-home child care affordable for many families.
Do you have to pay nanny time and half?
You are also required to pay your nanny time and a half for hours worked over 40 in a week. In a nanny share, both families are considered employers by the IRS. That means both families must obtain federal employer identification numbers (EIN) and register with the state.
Do you have to have Ein for nanny share?
In a nanny share, both families are considered employers by the IRS. That means both families must obtain federal employer identification numbers (EIN) and register with the state. Each family pays Social Security and Medicare (FICA) taxes as well as federal and state unemployment taxes.
What kind of insurance do I need for my Nanny?
If workers’ compensation insurance is required by state law, then both families must purchase a policy. Workers’ comp will help cover part of your nanny’s medical bills and lost wages if she gets hurt or sick while on the job. Even if coverage is voluntary, a policy may make sense and is often affordable.