Figuring out how much to pay a child care provider isn't always an easy, one-step process. It can involve a great deal of thought, budget planning and a whole lot of parental anxiety.
Your first decision to make, however, is the type of child care provider you plan on hiring. While day care costs tend to be clearly established and communicated, it can be trickier to make a child care budget if you're planning on hiring a babysitter or a nanny to look after your child.
While they might sound similar and fulfill similar roles (and some people refer to them interchangeably), babysitters and nannies are quite different when it comes to compensation and level of involvement.
How much should you pay a babysitter?
A babysitter is typically hired for short-term or occasional work and is paid by the hour. Many babysitters are in school or have another main source of income and are looking to babysit to make extra money. For this reason, they are often less available — only on certain days or evenings during the week, for example.
How much do babysitters make?
The most common variables that impact babysitter wages include your sitter’s level of experience, the age and number of children they are watching, and where you live.
This last one is important, as standard rates differ considerably around the country. For example, in California and New York, average rates are almost always higher. According to Urbansitter's most recent survey on babysitting rates around the country, the national average is $18.36 an hour for a sitter watching one child and $21.23 an hour for two children, although there is a huge range depending on location: On the low end, the average hourly rate in San Antonio, Texas is $12.54, but it jumps to $21.17 an hour in San Francisco.
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Most sitters will add a dollar or so per hour for each additional child they’re expected to watch. In Urbansitter's survey, the average rate increased between $2 and $3 per hour for a second child.
If you're paying an afterschool sitter a weekly rate, the 2020 average was $244 per week, according to the most recent figures from the Center for American Progress.
It’s important to be aware of the average cost of a babysitter in your area to feel confident that you are paying yours fairly and ensure that they will want to come back to assist your family in the future. The easiest way to do this is by asking other local parents how much they pay their sitters (you can poll the moms in your local What to Expect forum, too).
Once you do find a sitter, some experts recommend establishing a standard flat hourly rate plus an occasional bonus or annual raise.
Other considerations
Many babysitters command a higher price for watching an infant. Some babysitters may charge extra for special training like American Red Cross babysitting certification, CPR training or early childhood education experience. Additional compensation might also be added if driving is involved for the job or the babysitter needs to use her own vehicle.
How much should you pay a nanny?
Most full-time nannies are responsible for the child or children on a more consistent basis than the average babysitter. In general, a nanny works at least five days a week and receives a guaranteed weekly payment or salary that allows them to rely on the family as their primary source of income and as a professional career. (Of course, there are exceptions to this, and some nannies work on a part-time basis, especially if a family has school-aged children.)
As a result of this commitment, your nanny may agree to take on additional tasks around the house, such as cooking, cleaning and laundry.
How much do nannies make?
The same criteria for determining how much to pay a babysitter should apply when considering nanny salaries, including years of experience, education level and additional certifications. Thought should be put into whether or not the nanny is working for your family full-time, as this will not allow them to take on another full-time job.
Much like babysitter pay, there is no perfect formula to determine how much to pay a nanny. It tends to depend on individual job requirements and the person's own set rate.
As with babysitter rates, nannies working in areas with a higher cost of living such as New York City and Los Angeles tend to have higher salaries. According to a recent Care.com survey on nanny rates around the country, average hourly pay rates range from $14.40 an hour in Salt Lake City to $21.13 an hour in New York City. On average, the weekly rate for a full-time nanny was $612 for one child, according to the Center for American Progress. Watching additional children increases the hourly rate, on average, and the best practice is usually to increase the rate between $1 and $2 an hour.
Nannies usually receive paid vacation (two weeks is standard to start) and some families may also contribute to health care and transportation costs.
Other considerations
Consider the amount of children the nanny will be looking after, as well as their ages. Younger children tend to require more energy and attention than older children. It's also a good idea to factor in any other responsibilities your nanny will take on. For example, if they're helping out with more than just child care, such as laundry, grocery shopping, cleaning and any other household chores, their salary should reflect these tasks. As you make your budget, also keep in mind that it's common to tip your nanny around the holidays (54 percent of families sometimes or always do this, according to a recent Sittercity survey).
Finally, keep in mind that when hiring a full-time nanny, you need to prepare an SS-4 application and send it to the IRS; you’d then get an employer identification number (EIN) to use when filing paperwork for annual or quarterly reporting.
You will also need to calculate gross pay and payroll withholdings: According to the Social Security Administration, household workers who earn at least $2,300 in wages must have taxes deducted and paid to the Internal Revenue Service (IRS), and those wages should also be reported to Social Security. If applicable, you may have to pay state taxes, too.
The ultimate goal, of course, is to determine a fee for your babysitter or nanny that fits into your budget and allows you to feel secure in leaving your child with their caregiver. You might plan on having performance reviews with your nanny or babysitter to prevent any miscommunication and discuss appropriate compensation levels as your family's needs change over time.
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