Nannies are a valuable part of your family; and should receive the same job benefits as any other profession. Being a Nanny isn’t “just a babysitting gig” – this is an actual job!
When you hire a Nanny, it is extremely important to offer employment benefits to her. Think about it…She has one of the most important jobs in helping raise your child; and the next generation! Why shouldn’t she receive the same benefits as other professionals get?
These are the following common employment benefits within the Nanny industry. Since Rainbow Nannies is located in California – Los Angeles County, we only included California Labor Laws; and local Los Angeles City Laws.
Your Nanny should be paid 52 weeks a year! She has just like you bills to pay; and those bills don’t change whether or not you go on vacation or your mother in-law is in town to spend time with your child.
If your Nanny works more than 9 hours a day; and more than 40 hours a week (or more than 45 hours for a live-in position), she should receive overtime. Overtime pay, also called “time and a half”, is one and a half times her normal hourly wage. Know that you can’t pay your Nanny a pre-set, flat-salaried, amount for all hours worked in a week in the state of California.
Paid Sick Leave
According to California Labor Laws, you are required to provide at least 24 hours annually of paid sick leave. However, in the city of Los Angeles the local law applies, which requires you to offer at least 48 hours of paid sick leave annually. Additionally, to one hour accrued for every 30 hours worked, with an optional cap at 72 hours annually.
Other cities have local laws in regards of Paid Sick Leave, like Berkeley, Oakland, Emeryville, San Francisco, Santa Monica; and San Francisco.
Paid Time Off
It’s common in the Nanny industry to offer a Nanny paid time off. You could provide one week of paid vacation to a part-time Nanny; and two weeks of paid vacation to a full-time Nanny.
Seven federal holidays are included in paid holidays, which are: New Years’s Day, Memorial Day, Juneteenth Independence Day, 4th of July, Labor Day, Thanksgiving Day and Christmas Day.
Whenever you require your Nanny to utilize her own personal vehicle during work hours, whether this is for school drop off’s and/or pick up’s, driving your child to activities; or running an errand for your family, she should receive mileage reimbursement. Currently, this is 62.5 cents for every mile driven. Make sure to reimburse this weekly, so your Nanny can gas up her car.
It is important for you to remember that your annual family summer vacation or winter sport vacation, is not your Nanny’s vacation time! She should be paid her normal hourly rate for all hours responsible for your child. Additionally, your Nanny should be paid for travel time to and from the destination, airfare, rental car, hotel, meals; and any other travel related expenses. It is not uncommon in California to offer a travel-stipend daily as well. Keep in mind that your Nanny might have extra expenses while traveling with you, like boarding her dog, hiring a house sitter, or buying that warm ski outfit while joining you during your winter-sport vacation to Aspen. You do not need to pay your Nanny for any hours where she is free to go off on her own; or if you keep the baby monitor at night.
Health Insurance or Stipend
Health insurance or a stipend is becoming more a standard benefit for Nannies; and rightfully so! Some families purchase health insurance plans for their Nannies, but most families contribute a certain amount monthly to their Nanny’s health care plan, which is called a stipend.
The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), which was signed into law by President Barack Obama in December 2016 as part of the 21st Century Cures Act, allows a family to reimburse a Nannies up to $5,050 for a single health plan; or $10,250 for a family health plan annually tax free. Your Nanny must provide proof of her healthcare costs; and then you offer a monthly allowance to cover the costs, which is reported on your Nanny’s W-2. With the QSEHRA, all reimbursements are free of payroll tax for both the Family as the Nanny.
Investing in your Nanny’s continuing education will absolutely be a benefit for your child. Your Nanny might choose to become RIE or Montessori certified, would love to learn Sign Language, is interested in a Baby-Led Weaning Class, attend a potty-training seminar, has to update her CPR and First Aid certification; or she would like to attend the annual International Nanny Association Conference.
Holiday Bonus and Gifts of Appreciation
While not a requirement, I am sure your Nanny would love to know that you value her taking care of your child. Many families give a holiday bonus to their Nanny, which is typically one or two weeks of weekly pay. A nice incentive is to acknowledge your Nanny during National Nanny Recognition Week, which is celebrated every year in September. Let your child draw a fun picture of them together, give a gift card to her favorite coffee shop; or buy her some flowers. Let her know how much you appreciate her; and how important she is to your family!
Rainbow Nannies is working with Homework Solutions for all household payroll & Nanny tax compliance services. Please click on the following link for more information: https://www.homeworksolutions.com/partners/rainbow-nannies/
THE INFORMATION PRESENTED IN THIS POST MAY NOT REFLECT THE MOST CURRENT LEGAL DEVELOPMENTS. THE AUTHOR OF THIS POST RECOMMENDS THAT AN ATTORNEY SHOULD BE CONTACTED FOR ADVICE ON SPECIFIC LABOR LAWS AND LEGAL ISSUES IN THE STATE OF CALIFORNIA AND IN ANY INDIVIDUAL CITY OR LOCALITY.
[Picture credit @teksomolika]