Nanny costs keep adding up

emilyec1

I am so appreciative of our nanny, but wow these costs are really adding up. The hourly rate, the estimated employer taxes, the nanny tax prep fees, lunch grocery costs, and now we had to add a workman's comp policy as required by our state. It still makes sense financially for me to work, but dang! Was anyone else taken aback by all the costs associated with becoming an employer of domestic help?

MammaBear81

It's why we went with an au pair. There were too many "outside costs" associated with a nanny (or any in home care).  The only outside cost we have for the au pair is an added driver for our cars.

joleine

our CPA doesn't handle the tax stuff with the nanny, so I just started using Intuit/Quickbooks payroll for it.  It's $39 a month and that includes the weekly processing, direct deposit, tax calculations and deposits to the proper agencies, W2 processing, etc.  The local payroll companies wanted $75 a quarter just for the quarterly tax submissions on top of a monthly rate to process the payroll.  Also, your nanny should bring her own lunch, mine does.  Can you also see if your nanny will help out around the house to make her seem more "worth it"? Mine does the kids laundry and will fold anything I've left in the dryer.  She also keeps the house tidy, sweeps, mops, vacuums, dishes, etc.. 

rockychryslerb2010

See if you can add things to do for your nanny. Now that E is sleeping 2 hrs a day, she has more time to do other things. She always cleans up the play area, our kitchen, does dishes and general organizing.  She does all of our laundry. We don't pay her meals, see if you can revise your agreement to remove that.  We also use intuit online payroll, but I'm pretty sure it costs us less than $30/month, and they gave the first month or two free.