Nanny Pay Question

MamaAllison · March 2014

Hello all,

So I'm a teacher and need to go back to work for about 6 weeks until summer vacation when maternity leave ends. We thought we had care all sorted out in that DH's brother's girlfriend (who we love) was going to watch the little one while the big will continue to go to daycare. We had her over for dinner two nights ago to talk about timing, payment, etc.

We offered her $350/week, cash, under the table. She would be working about 10 hours a day so that's $7 an hour (but again, under the table). We also told her that if she would be able to help out with some of the house stuff we could pay her more like $400 a week. DH and I had previously discussed that that was the absolute limit of what we could really afford.

She e-mailed us today and said that she really needed to make 9-10 an hour and so wanted $450-500 a week and of course would be happy to help around the house. I understand that she would like to make that, but is that reasonable? I live in a fairly HCOL, and send DD1 to a pretty expensive daycare, but if I were to send DD2 the charge (just for her) would only be $330 a week, plus then I'd get a discount on DD1 as well.

So here are my questions: 1. Is she being reasonable to ask for that? She doesn't have any nannying experience, but she has babysat some. I trust her, that's not the issue at all.

2. Is sending DD2 to DC at 3 months that big of a deal? I was really attached to her being at home for at least six months. Is it worth it to spend almost double per week to keep her home?

Thanks ladies, I know you'll guide me the right way

ETA: I know lots of babies go to DC even sooner than 3 months, hope no one is offended by that part, I just got to stay home with DD1 until she was 11 months so I was hoping DD2 could be at least 6 months before having to go back.

jf198400 · March 2014

I think it's reasonable for her to ask for that amount, but I personally couldn't justify paying it. I can't imagine paying that much more than daycare, especially since you'll still have to dropoff and pickup dd1 at daycare. I would tell her that $400 is your max take it or leave it and if she declines then go with daycare.

VOR · March 2014

jf198400 said:

I would tell her that $400 is your max take it or leave it and if she declines then go with daycare.

This. And I'd remind her that this is tax-free.

djm31012 · March 2014

I can see both sides...however what she needs to remember is that you paying her $400/wk is really equiv to a $40k a year salary bc she wont need to pay taxes . can she find something that will pay her that much elsewhere after taxes? It really depends what you are comfortable with. DS is a day care baby but he did not start until about 8.5 mos so I can understand you wanting to keep the baby home a little longer. In my opinion...its worth paying the extra for a few months to keep her happy and have the situation you are MOST comfortable with. If you really cant swing it, then there is nothing wrong with day care..many babies start at 6 weeks old and do perfectly fine.

Sept07b2b · March 2014

If you are in a HCOL, then 9-10/hr seems really reasonable! I would even think more than that would be reasonable. I live in a HCOL and $15/hr is sort of the minimum.

Also, you're asking for 10 hours per day. That's a LONG week. While I know you are paying her under the table, if you were doing this "legally" you would have to pay her time and half for any hours worked over 40hrs/week, so $450/week is actually a decent deal for you too for 50 hrs/week. Remember, minimum wage is over$7/hr.

Nannies are expensive, and it sounds like you have a good alternative. If you don't want to pay the "premium" that typically comes along with having a nanny, then you should send LO to daycare.

Edit: For what it's worth, if I were in your shoes, I would send LO to daycare. As PP mentioned, you already have to bring one child, so you aren't reaping all the benefits of a nanny. I think she is asking for a fair salary, but the cost is one of the reasons we don't have a nanny.

*sparky* · March 2014

We live in MCOL and I cannot find a nanny for less than $15/hr so you are getting a deal. Also as a PP wrote, with the number of hours you need her for if you had a nanny that was not someone you know you would have to pay OT as well.

I think the amount she is asking for is reasonable. Is there any way you would consider having her care for your other LO too? That way you don't have to put the baby in DC before you are ready and you only have to pay for the nanny. Otherwise I think the only other option is to bite the bullet and pay for both or put the LO in DC for 6 weeks.

MamaAllison · March 2014

Thanks ladies, I really appreciate all the input. $350 sounds like a lot but not really when you divide it out hourly. I think we are going to offer her 100/day (so 10 an hour) but only pay her for the days she actually works. Before with the weekly rate we were intending to pay her the same every week even though we knew she needed 6 of the 30 days off. I want her to want to do it/ be happy with what she's making so if that doesn't work for her then we will just go for DC. Thanks ladies!

jf198400 · March 2014

That seems like a fair resolution especially since you'll probably have to pay for backup care those days.

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