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Cost of a Nanny Share

 

What is the average cost per household?

One of the many benefits of a Nanny Share is the fact that it's more affordable than many other childcare options!

However, it isn't just half the cost of employing a nanny.

Most Nanny Shares utilize the 2/3 rule - each share family pays 2/3 of the cost to employ the nanny.

This ensures that each family is paying less than they would if they were the sole employer, while the nanny earns more than if they were only working with one family. Overall, the goal is to make this a mutually beneficial arrangement.

Remember, your nanny will be caring for two kids at once, and Nanny Share logistics can get quite complicated - it makes sense for the nanny to have a higher compensation.  

Example: Suppose the average rate for a nanny is $18/hour.

  • 2/3 of $18/hour = $12/hour 

  • Each family would then pay the nanny $12/hour, causing the nanny to earn $24/hour.

  • Each family pays less, but the nanny earns more! 

What is the average rate for a nanny in the top U.S. cities?

The following rates are the average ranges for each city. Minimum wage is the absolute lowest rate to legally pay a nanny, but most nannies are looking for higher wages since childcare can be a tough job. Wages also depend on their previous experience, the number of children in the nanny share, and job expectations. 

The INA (International Nanny Association) 2014 Salary and Benefits Survey indicates that $18.66 is the average hourly rate for a nanny.

Los Angeles

  • Full-time nannies are looking for $15 to $35 per hour

  • Neighborhoods like Hollywood, Pasadena, Pacific Palisades, Manhattan Beach, Sherman Oaks, among other high-end areas are typically on the higher end of the spectrum

San Francisco

  • Full-time nannies are looking for $17 to $25 per hour

  • This figure includes areas like Palo Alto, Mission Bay, the Marina, Orinda, and Noe Valley

New York City 

  • Nannies in New York City and the surrounding burrows typically look for $17 to $30 per hour

Chicago

  • You can expect to pays Chicago nannies between $16 and $20 per hour
  • This includes areas like the West Loop, the South Loop, River North, Lincoln Square, and Lincoln Park

Is your city not mentioned above? Don't worry! There are so many resources available to figure out what you should pay your nanny. You can search online, checkout local nanny Facebook groups, and ask other families in your neighborhood. 

What other expenses should be considered?

While the main cost when employing a nanny is their hourly wage, there are other expenses that should be considered as well.

  • It's very common to give your nanny an annual bonus around the holidays. This is typically 1 to 2 weeks of the nanny's pay.

  • Some families include valuable incentives to ensure they find their perfect nanny. This can include a transit pass, health insurance, gym membership, etc.

Some other expenses could include:

  • Food (lunch, snacks, etc.),

  • Additional equipment (strollers, high chairs, car seats, etc.),

  • Supplies (diapers, toys, etc.),

  • Gas mileage, 

  • Excursions / weekly activities / memberships

If you choose to use a nanny payroll service, this is an additional cost that should also be considered. 

How do you split the cost of a nanny share?

Splitting the cost is one of the most complicated things to take into account when starting a nanny share.

Things like overtime, vacations, and sick days can be difficult to manage, so it's important to have everything outlined in the nanny contract. Not only that, but timesheets will be essential when it comes to keeping track of the occasional overtime. 

The key thing to maintaining a successful nanny share is making sure that all parties are on the same page, especially when it comes to expenses. This is where a nanny payroll service can be a great way keep everything organized, and stress-free.

How is Nanny Share payroll different?

Nanny payroll services handle the paperwork and many expenses that are associated with being a household employer. Using a payroll service ensures that the nanny is paid legally and on time, covers unemployment insurance, and provides a childcare tax credit. 

The main difference with a nanny share is that each family files their payroll separately, and the nanny is then paid by each family's bank accounts.