Archive for October, 2011

True or False: There is a Special Nanny Tax

Monday, October 17th, 2011

In reality, there is no such thing as a ‘nanny tax’. There are no unique taxes that apply only to nannies. However, the term nanny tax does refer to some real taxes that employers of nannies do need to pay, just like employers of other types of workers are responsible for paying their share of employment taxes.  For a detailed breakdown you can look at IRS Publication 926 as it is the Household Employer’s Tax Guide.

The term nanny tax originated because of well-known nanny employers who had not paid in the appropriate taxes. The employment tax rules are a bit different for household employees (which is the classification that a nanny fits into), than they are for other employees, so it can be confusing.

The first item that you need to consider when deciding whether or not you may owe ‘nanny tax’ is how much money you paid for in-home daycare during the year. For 2011, $1,700.00 is the magic number. If you paid more than this amount for in-home daycare during the year, then you are required to report and pay employment taxes on the wages paid to that in-home provider.

There are exceptions to this rule, of course. Most family members: spouse, parents, or a child under twenty-one would be exempt. Also, anyone under 18 years old, who is not working as a nanny as their primary occupation, such as a high school student, would be excluded.

And what are these ‘nanny taxes’? They are the same taxes all employers must pay into the U.S. government. FICA is the main one. This is made up of two parts, social security taxes and medicare taxes. Together, they total 7.65% of the nanny’s wages, which you, as the employer, are responsible for paying. The other federal tax is referred to as FUTA. It is the Federal Unemployment Tax. This tax is paid on only the first $7,000.00 in wages paid during the year and is calculated at .08%. State unemployment taxes may apply, also. Each employer should check on the filing requirements within their own state for these rates and limts.

In addition to these ‘employer taxes’, the nanny will also be responsible for her share of the FICA taxes, which are at a reduced rate for 2011, but will be a matching 7.65% in 2012. She is also responsible for her own income tax payments, unless you have agreed to withhold these and deposit the payments for her.

For the normal homeowner, all of this can be quite confusing. Working with a nanny agency can be helpful, as they are quite familiar with the process and your options. Consulting with your tax profession prior to hiring your first nanny is also recommended. To take the burden totally off your shoulders, there are several payroll services available that will handle your nanny’s payroll for you and make sure that you are in full compliance. There is also payroll software, such as Nanny Pay that help you with the process.

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10 Nannies Who Helped Shape History

Friday, October 14th, 2011

To make a difference in the life of a young person is as much a gift as it is a vocation. Nannies make that difference everyday in someone’s life. Sometimes the difference a nanny makes is even farther-reaching than she – or we – may have guessed. Here are ten nannies who helped shape history:

  1. Tiggy Legge-Bourke – Nanny to Prince William of Wales and brother Prince Harry. Tiggy provided a strong, stabilizing influence in the young royals’ lives after the tragic death of their mother, Princess Diana.
  2. Ann Pack – A Quaker woman who was hired as a wet nurse for young William, Duke of Gloucester. Her care of the boy was regarded as being instrumental in maintaining William’s health and is today regarded as a forerunner of today’s British Nanny.
  3. Baroness Maria von Trapp – School teacher, singer, stepmother, and ultimately the inspiration for the musical The Sound of Music. Her life story, and that of the von Trapp family as told through her books and in film, have inspired millions, and no doubt more than a few future nannies.
  4. Queen Nanny of the Maroons – Widely regarded as the mother of Jamaica, her influence, leadership and nurturing nature made her nanny to an island nation by service as well as in name. One of seven national heroes, depicted on the Jamaican 500 bill, or Nanny Note; legend of song, poetry and folklore.
  5. Alison Cunningham – Nanny to Robert Louis Stevenson. Cunningham played a large role in raising Stevenson and had a lasting influence on his religious views and experience. His book, A Child’s Garden of Verses is dedicated to Alison.
  6. Marie Curie – Renowned Polish-French scientist whose pioneering work in radioactivity earned her Nobel Prizes in physics and chemistry. Early in Madame Curie’s career she worked as … a governess.
  7. Arina Rodionovna – Nanny to 19th Century Russian author Alexander Pushkin. Her influence on his life is credited for having inspired some of Pushkin’s greatest works.
  8. John Bowlby – British psychoanalyst, regarded as the father of the attachment theory. His attachment to, and affection for, his nanny during his youth greatly affected his views on relationships, which would help form the foundation for his later psychological work in the field of child development.
  9. Anna Leonowens – Teacher, writer, social activist. Governess to the family of Mongkut, King of Siam, which is the basis for the movie The King and I as well as the 1944 novel Anna and the King of Siam. Co-founded the Nova Scotia College of Art and Design; her experience as governess in Siam prompted her advocacy of women’s rights via lectures, books and education.
  10. Elizabeth Anne Everest – Hired by Lord and Lady Randolph to  nanny one Winston Churchill. So great was Mrs. Everest’s personal and spiritual influence on Churchill’s young life that author Stephen Mansfield wrote of them in Hidden Calling:

“So it was that when the man some called the ‘Greatest Man of the Age,’ lay dying in 1965 at the age of ninety, there was but one picture that stood at his bedside. It was the picture of his beloved nanny, gone to be with her Lord some seventy years before. She had understood him, she had prayed him to his best, and she had fueled the faith that fed the destiny of nations … in the hiddenness of her calling. ”

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Dilemma: Cloth or Disposable

Saturday, October 8th, 2011

New parents have lots of decisions to make for their baby. One of those decisions is whether to use cloth or disposable diapers (this impacts themselves AND their nanny if they hire one). Until disposable diapers were invented and made affordable, cloth was the only realistic choice (thanks Mom!). Since disposable diapers are so convenient and easy to use, cloth diapers became almost extinct. However, both economic and environmental concerns have helped cloth diapers make a comeback. So let’s quickly explore the advantages and disadvantages of using cloth diapers.

One of the first considerations when deciding between cloth or disposable diapers is the cost. If you sit down and figure out how much you’ll spend on disposables for two years, cloth diapers are usually far less expensive. The initial cost of the diapers themselves is more, but just do the math… Even if you include the cost of washing them, cloth diapers are going to save you money in the long run.

The next issue to consider is the huge environmental impact of disposable diapers. With literally tons of used diapers filled with human waste clogging up landfills, cloth diapers are clearly far better for the environment. Besides that, the main fabric used in diapers is cotton, which is a renewable resource. A new crop of cotton can be planted every year, while the paper and plastic in disposables comes from trees and petroleum products. Even though trees are also a renewable resource, they obviously take longer than cotton to grow.

Another advantage of cloth diapers is that they are reusable. Soiled diapers get rinsed and washed so they can be used over and over again until the child is potty trained. They can even be passed on from one child to the next or given to friends or family who are starting a new family (some people find that to be gross, but they ARE clean after all).

One disadvantage of the old-fashioned cloth diapers is that they require using pins and plastic pants. However, for parents who want to spend a little more money, there are new designs of cloth diapers that fasten with snaps or Velcro. The waterproof fabric on the outside is colorful and stylish, with removable liners that can be washed separately.

Of course the biggest disadvantage of cloth diapers is dealing with the mess. The poop needs to be flushed down the toilet and the diapers need to be rinsed, which can be difficult for squeamish parents. Then there’s the added chore associated with extra loads of laundry. This consumes more time and energy for the caregivers. However, as you might have guessed some entrepreneurs saw this as an opportunity and will provide you with a cloth diaper service taking the yuck with them on their truck (of course, that all but eliminates the cost advantage of cloth diapers).

Another disadvantage of cloth diapers is the problem of leaks. Depending on the type of diapers used and how often they are changed, leaking can be a concern. Frequently changing the baby’s clothes also adds to the mountain of laundry that’s already piling up. Parents who use cloth diapers need to experiment with different sizes and liners to find the right solution for their baby.

The ultimate disadvantage of cloth diapers is that disposables are just so darn convenient, most people are willing to forego the extra expense and environmental impact. Dealing with diapers is about the least pleasant part of having a baby and disposables certainly make it much easier. One thing conscientious parents who decide to use cloth diapers need to keep in mind is that they can always have some disposables on hand to use when needed. Most people who use cloth usually have disposables for traveling or to use overnight.

In the end, like most things it comes down to the parents taking a decision.  The good news is that there is no right or wrong answer as long as you keep the baby clean, comfortable, and dry.

Posted in Newborn Nanny Care | Comments Off

What to Do When Your Nanny is Ill

Wednesday, October 5th, 2011

This news item may surprise a few of you, but it has come to our attention that nannies, even SuperNannies, are human. Yes, that’s right, your very own Mary Poppins is actually flesh-and-bone just like you. As such, she is prone to many of the vicissitudes of life that other humanoids are subject to. Your nanny may even, heaven forbid, fall victim to a disease or injury that may sideline him or her for a longer period of time. In addition, nannies have families too, and there may be times when her family will need her even more than you do (as impossible as that may seem). What, then, do parents do for interim childcare? Below you will find a few of the options that will help you fill the gap. One of these may work for you or you may even end up utilizing more than one of these resources, especially if your nanny will be out for a lengthy period of time.

  1. Get a Screened Temp – Sometimes the same agency that parents used to hire their nanny (like eNannySource) will be able to provide a temp for the duration of the original nanny’s absence.  This can be quick and offer you the same level of vetting that you used to get your permanent nanny.  It’s really important to be clear that this is a temporary position when you list this job to properly set the caregiver’s expectations.
  2. Friend of Nanny – Your nanny is likely to know other nannies, and she herself may be the one to steer you to temporary help. She may know someone that is between jobs or may even have a friend or relative that can stand in for her for a short period of time.  You should consider running a nanny background check on them as well just to be safe.
  3. Neighbor – If it’s only for a few hours and not for an extended number of days your neighbors may be a source of help in an emergency. If they also have children you may be able to work out a deal where you back each other up when/if the need arises.
  4. Yourself or Spouse – Depending on the duration of the absence, one or both parents may simply have to take some time off from work.  This is by far the most likely choice but it is not open to everyone.  Some people work jobs that make it virtually impossible to take time off without serious repercussions.  If you are lucky though… your boss is very supportive and as long as it isn’t a chronic problem you can take time off as needed to properly care for your kids.
  5. Family – If your nanny isn’t available and the other options have failed, then if you have family near by it’s time to start calling them to see who may be able to lend a hand.  Of course, grandpa and grandma are a top choice for the kiddos.  We would strongly encourage you to not abuse the generosity of your family though and respect their time by compensating them in some way for their assistance.
  6. College Students – If you live near a college you may find bulletin boards where students post availability for a variety of jobs. In a pinch, they could be the answer.  If you see a name up on one of these boards or even at the local grocery store you may want to pull one, interview them, and establish them as a backup plan for childcare at the very least.  This is another scenario where it’s important to run a background check to give you the confidence you need to trust them with your children.
  7. Babysitter – If you have a “go to” babysitter that you use for nights out on the town and/or other special occasions, you might want to contact them and see if they are available on an ad hoc basis in the event that you need them.  They may or may not have all of the skills and abilities of a professional caregiver, but if you know them that could be a big enough advantage when you are in a jam.
  8. Substitute – You may not have hired your nanny through an agency, in which case you might want to investigate the local temp agencies.  In general they can be quite expensive so your best bet may is to stick with an online service like eNannySource to get you out of these types of situations.
  9. Baby to Work Day – Workplaces differ, but sometimes parents can occasionally take their children to work with them. Some companies even have a childcare facility.  If this option is available, you should take advantage of it when possible because they are becoming exceedingly rare.
  10. The “Y” – Most communities have a “Y” (formerly YMCA), and most of them offer daycare and after-school care, which could be a viable option for families in-a-bind.  You should definitely check ahead to see if they take drop-ins or not.  If they do, then this is a very viable and safe option in most cases.  You can also check with local, quality daycare centers to see if they take drop-ins and have references you can quickly check out.

We hope that you don’t have too many needs to replace your nanny on a temporary or even permanent basis.  We do believe that consistency with caregivers is important for early childhood development.  With that said, life happens and you need to be prepared to handle just about any situation always making sure that the safety of your children comes first.  Apply great scrutiny and don’t be afraid to just take time off from work yourself if you have to in order to temporarily fill in for your nanny.

Posted in hiring a nanny, Nanny Safety | 1 Comment »

10 Reasons Nannies Don’t Love SuperNanny

Tuesday, October 4th, 2011

SuperNanny and its primary competitor, Nanny 911, are a pair of shows that television networks promote as “reality” programming. In both of these shows the set-up is basically the same, in that upper-middle-class families who have multiple children, who are not angels, need to call in expert help to save the families from imploding. The expert help is the super nanny, a regular Mary Poppins on steroids. The nannies come to the rescue of befuddled parents and caregivers, and they turn all the little imps (sorry… it’s true) into model children using little more than Dr. Phil types of advice. The nannies do everything so much better than anyone else can, and they make it look super easy. Reaction among nannies in the real world that you and I inhabit has been mixed, but tends toward not loving it and here are some of the reasons why:

  1. Unrealistic – “Reality” television is pretty much everything except reality. Networks and studios put these shows out because they are cheap to make and have a car-wreck appeal.
  2. False Comparisons – In the real world even a “super nanny” would not handle the crises as though everyone was on some kind of game show.
  3. Bad Advice – The simplistic solutions are hardly what is called for in a real situation. When a nanny actually has to handle a crisis, she has to be able to think on her feet, and she isn’t likely to find her answers in neat little packages.
  4. Dr. Phil – SuperDooperNanny is all about the image of “tough love” and control, and there is some merit to the approach, but it is taken much too far. When solutions are no more than recycled Dr. Phil advice, formulaic and domineering, there is little translation to what real families and nannies face every day.
  5. Only the Wealthy – Judging by the TV show, it seems that only well-to-do families with three-or-more children employ nannies, and it is hard for less affluent working parents to relate to the country club lifestyles portrayed on television.  The reality is that nannies can be very affordable for families with a modest budget especially compared to the rising costs of traditional daycare centers.
  6. Drama – There’s enough “drama” on one episode of SuperNanny or Nanny 911 to fill an entire decade of real life. More nannies have to deal with diapers and dishes than they do with most of the shenanigans on the shows.
  7. All About Nanny – Nannies are often considered part of the family, but the shows would have you believe that the nanny is the leading player, which is rarely the case.
  8. Takes Herself too Seriously – Nannies are professional caregivers, not philosophy professors and lecturers, and most families aren’t full of incompetent fools, which is how it seems to work on both shows.
  9. Guest Stars – SuperNanny gets to call in people like NBA star Dwayne Wade when she has a kid that needs a talking-to. Most real families would be lucky to get Larry the Cable Guy (“Get ‘er done!”).
  10. Controversial – The sensationalism of the shows is a turn-off to many in the childcare industry. There is a lot more peace and harmony in most households than you will ever see portrayed on a “reality” show.

If “reality” programming is something you find entertaining (I have to admit I usually do…), then by all means watch it. Just don’t be fooled into thinking it’s 100% real.  The biggest advantage of SuperNanny is the understanding that help is available if and when you need it and that you can and should feel comfortable turning to a professional nanny for assistance with your family (just don’t expect them to show up wearing a cape and trying to immediately save the day).

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