Nanny Pay & Taxes
At The Elite Nanny Team, the parents pay the nanny directly usually using an online direct deposit system, and handle all nanny taxes. We highly recommend HomePay by Breedlove.
Please know that the minimum nanny pay we extend to our nannies on your behalf is $15.00 an hour.
While your nanny may work a consistent shift and his or her pay may not fluctuate greatly, we suggest using a time tracking app.
The number one reason nannies quit is that they feel they are being taken advantage of (regardless of whether it is occurring or not).
The easiest way to eliminate friction is two-step:
First, pay your nanny by the hour and not on a salary.
Second, utilize a time card app your nanny can use to track her hours. Using a time tracking app greatly ensures complete transparency about hours worked and nanny pay.
Many available apps recognize when the employee arrives at the home address (also known as work) and initiates a timestamp. Additionally, your nanny can email you a CSV documenting their hours.
We highly recommend HoursTracker, which is available for free on Android and iPhone. It is our goal to establish a lasting relationship based on trust and open communication.
While we offer suggestions, as the employer all final decisions are yours.
It is our goal to minimize unneeded tensions. Additionally, you are welcome to compensate your household employee in cash, check, or direct deposit.
Wondering what Nanny Services we offer?
How Much Does a Nanny Cost in Minnesota?
Nannies aren't cheap. A nanny will cost as much as they are worth. You are paying for reliability, experience, and convenience.
You are also paying for their extensive childcare knowledge and their passion for providing quality childcare. Every nanny agency is different.
At The Elite Nanny Team, parents pay their nanny directly typically using a direct deposit system, but some sitters accept checks.
At our Minneapolis based nanny agency, the lowest hourly rate we will extend to nannies on our client's behalf is $15.00 an hour.
At $15.00 an hour, fewer of our nannies are college-educated. The higher the hourly nanny pay you offer, the greater the skill and education we can recruit for.
It is never too early to start searching for the perfect childcare expert. Discover how our placement services will offer you the highest quality of child care imaginable.
Childcare is tax-deductible.
As the employer, you are responsible for state and federal nanny taxes. Typically, a W-2 is issued to the nanny. You will be encouraged to follow accurate accounting by deducting taxes from your employee’s pay at the end of each week.
Most of our clients either own their own business so their accountant handles the taxes. Families who don't use an accountant use a payroll system that manages all of the taxes for you (with the exception of fiscal-year-end itemization.)
Because your contract establishes a guaranteed number of hours, this calculation and fee rarely differ from week to week, so if you prefer to manage your private household employee's taxes personally, that is up to you.
Kindly note that the employer is accountable for paying nanny taxes ON BEHALF OF the nanny/babysitter.
Filing nanny taxes is important and will allow you to benefit from the childcare tax deduction.
Which nanny service would best suit your childcare needs?
About Paid Vacation Days and Other Benefits
Offering employment benefits to your nanny is your decision, as the employer.
You can establish them as the total number of days you will offer if your nanny-employee goes on vacation or becomes sick.
Typically, we suggest that however many paid vacation days you offer the nanny, you use half of the days and schedule them to coincide with your family's vacation.
You leave the remaining vacation days for your nanny to use to schedule her own vacation.
Employers hiring a full-time nanny typically offer between 10 and 30 days paid vacation days plus some paid federal holidays.