A couple months ago I wrote a post about how guilty I felt hiring someone to help with the two girls, as I was a stay at home mom. As a SAHM I felt like taking care of my girls was my "job" and if I had hired someone to help me, I was a failure at said job. After a few weeks of managing the two girls by myself, with no family around to help me, I started to feel ok about the idea of getting a little extra help. I had a newborn that refused to take a bottle, and refused to be out of someones arms, oh and hates the car too, so I was unable to get anything done. So we hired a fabulous young thing who from hence forth will be known as "Faith" on this blog.
I knew before I even met Faith that I would like her. Her response to my post on Sittercity started with "you had me laughing out loud at your job post!" She thinks I am funny? Well you are hired dear girl!
I had reservations at first about hiring Faith though, because she is fresh out of college, and new to Boston, but after meeting her I felt like we instantly clicked. And I knew she was a good person when M took an instant liking to her too. M tends to clam up around strangers, but Faith made her feel so comfortable right off the bat that they were instant playmates. And Val? Well she is all smiles at everyone, but Faith handled her with such love and care that I knew this was going to work out.
Fast forward two months to today and I am living guilt free about having Faith come help me out two days a week. I so look forward to those two mornings that she comes to our house. I can take M to school without having to deal with a crying baby. I can take my time at the grocery store without having to have Val strapped to me. I can run errands ten times more quickly than I can with babes in tow. I can put away my laundry that has been piling up. I can even work on some crafts and gifts that I have been making without having to hold a baby in one arm!
And did I tell you she does housework too? Jealous yet? HA! For the money we are paying her you would expect her to cook a gourmet meal every morning, but she does everything but. The girls' laundry is done and put away. Beds are made. The dishes are clean and put away. The house is tidy. She is worth every penny if you ask me!
Just this short 10 hour period a week has given me my sanity back. The sleepless nights that I still have are counteracted by my ability to be able to run and get my nails done, by myself. That alone time really rejuvenates this tired Mama, and I can't recommend it more to all you busy SAHMs out there. Get help. Have a grandparent watch the kids for a few hours a week. No family close, like us? Hire someone through Sittercity or Care.com!
And let all that guilt go! I still watch my kids 99% of the rest of the week, so it isn't that big of deal in the grand scheme of their little lives.
And no, you cannot have Faith! She is mine...all mine :)
Showing posts with label Nanny. Show all posts
Showing posts with label Nanny. Show all posts
Wednesday, November 28, 2012
Wednesday, February 9, 2011
Part 3: How to Hire a Nanny
Ooh, tax stuff. It's not sexy, but it's the most important. We'll start with the Federal taxes, as believe it or not, it's the easiest!
And how do you get all this money to the government? It's actually easy. You can pay all at once at the end of the year (and speaking of the end of the year, you'll need to provide your nanny with a W-2 and send the government at W-3 at the end of the year) or paying estimated taxes quarterly. Or you can have the money taken out of YOUR paycheck. For instance, let's say the taxes that you owe for your nanny plus your nanny's withholding is $50 per week. There is a line on the W-4 that says "any additional amount you'd like withheld." You just put $50 in that line. So basically, the money that you owe for your nanny is paid through money taken from YOUR paycheck...sounds complicated, but it's actually easy...and the money gets exactly where it needs to go. It's also easier to budget, as then you're technically "paying" those taxes on a weekly basis instead of one lump sum at the end of the year or in estimated quarterly payments.
As always, I'm not a tax expert...so take everything I say with a grain of salt. This is just to make you feel informed...I'd suggest running everything by an accountant regardless, but if you've read these posts, at least it will be a shorter visit with the accountant!
Next up...state taxes. Then it's all done!
- Social Security and Medicare are paid for in two parts - typically half by the employer and half by the employee. You can pay your employee's portion if you'd like. For these purposes, let's assume you're not. Withhold 6.2% of your employees paycheck for Social Security and 1.45% for Medicare (please check the IRS for the latest, as due to the recent economic conditions, the Social Security withholding is slightly less, but I'll use the traditional percentages here). Out of your own pocket, pay 6.2% of your employees wages to Social Security and 1.45% for Medicare. Here's an example using real, simple numbers...If you pay your nanny $100 a week, you'd withhold $6.20 for Social Security and $1.45 for Medicare. You'd pay out of your pocket an additional $6.20 for Social Security and $1.45 for Medicare (this is why the "cost" of a nanny is slightly more than her actual wage...you need to pay some additional money out of your pocket). This money ($15.30) goes to the government. Check out this document for a more clear description of the options.
- FUTA is the Federal Unemployment Tax. You only pay this tax (out of your own pocket) on the first $7,000 in wages. The rate is .08%, but ONLY if you pay your state unemployment taxes on time. So if you pay your state unemployment taxes, you'll only owe about $50-60 to the feds.
And how do you get all this money to the government? It's actually easy. You can pay all at once at the end of the year (and speaking of the end of the year, you'll need to provide your nanny with a W-2 and send the government at W-3 at the end of the year) or paying estimated taxes quarterly. Or you can have the money taken out of YOUR paycheck. For instance, let's say the taxes that you owe for your nanny plus your nanny's withholding is $50 per week. There is a line on the W-4 that says "any additional amount you'd like withheld." You just put $50 in that line. So basically, the money that you owe for your nanny is paid through money taken from YOUR paycheck...sounds complicated, but it's actually easy...and the money gets exactly where it needs to go. It's also easier to budget, as then you're technically "paying" those taxes on a weekly basis instead of one lump sum at the end of the year or in estimated quarterly payments.
As always, I'm not a tax expert...so take everything I say with a grain of salt. This is just to make you feel informed...I'd suggest running everything by an accountant regardless, but if you've read these posts, at least it will be a shorter visit with the accountant!
Next up...state taxes. Then it's all done!
Tuesday, January 25, 2011
Part 2: How to Hire a Nanny
If you haven't read it yet, check out Part 1 below. Part 2 doesn't necessarily have sequential steps, as they can really be done simultaneously, or in any order you prefer (except where noted). Please note, this is the part in which you become a "business" - it will also make you feel old and important. The documents are linked below, although simply googling the name will bring them up.
- Get a Federal EIN (Employer ID Number). You will need this for a number of forms, so this step you should probably do first. It's easy to get it instantly online...you just need your Social Security Number.
- Ask your nanny to fill out an I-9, which indicates she is legal to work in the US. Make copies of her IDs. Save this in your files.
- Ask your nanny to fill out an M-4 for state withholding and an W-4 for federal withholding. Make note of their deductions, but otherwise, save this in your files.
- Call your insurance agent and get Workers Compensation Insurance for your nanny. It should cost about $250/year.
Part 1: How to Hire a Nanny
After 9 months at home with my two boys, I decided to go back to work. And since my oldest is in a preschool that he loves and since I wanted to keep them together, I decided to go the nanny route. I want to focus on how to hire a nanny "legally" (in terms of taxes) as there are lots of good resources out there on choosing your nanny...so stay tuned and hopefully this will be helpful for you!
Step 1: Cry, because most of your paycheck will be going to the nanny. But realize, there are lots of advantages for your children. Compare your nanny's paycheck to your first paycheck...and realize that you should have been a nanny.
Step 2: Use sittercity.com, care.com or other sources (like Craig's List) to find a nanny. When creating a job posting on the site, be as specific as possible.
Step 3: Choose a handful of candidates to consider. I used the three step process of: phone interview, in-person interview with just me, and then an invite to the house to meet the boys. I started with about 10 phone interviews, 4-5 in-person interviews, and then 2-3 over to meet the boys. The interview process was quite tedious, but important. It took about a week to 10 days.
Step 4: This may overlap with Step 3, depending on your comfort level. Check references and get background checks. I used the background checks provided by sittercity.com, but based on my nanny's previous employment, I trusted that she had passed more significant background checks. Obviously, the length of time it takes to complete this step varies.
Step 5: Make your offer, hire your nanny, and create a contract (google "nanny contracts" and lots of samples will come up). Start familiarizing yourself with the requirements of becoming an employer. Here is some reading:
Stay tuned for more!
Step 1: Cry, because most of your paycheck will be going to the nanny. But realize, there are lots of advantages for your children. Compare your nanny's paycheck to your first paycheck...and realize that you should have been a nanny.
Step 2: Use sittercity.com, care.com or other sources (like Craig's List) to find a nanny. When creating a job posting on the site, be as specific as possible.
- Include hours, need for a car, and any details on what is expected in terms of household tasks
- Include some information about your kids and what they like to do as well
- Give a range in terms of salary (assume that you will need to pay at least 10% of your nanny's salary in taxes, so if you pay her $15/hr, you'll actually need to budget for $16-17/hr), but leave yourself some wiggle room so you can vary it based on experience
- One helpful tip, include 3-5 questions in your job posting. If candidates do not specifically answer the questions, consider crossing them off the list. If they're not attentive to the details, maybe you should consider someone else. Plus, if you use one of the sites listed above, you'll easily have 60+ candidates (in a matter of days) and need a way to shrink the pool.
- Consider health insurance. Read up on the MA Health Connector site about what you can offer. For nanny's that make less than $32K a year (check the amount, as they change yearly), insurance could cost $150/month or less. For those under 26, there are also affordable plans offered by the state. It's not as overwhelming as you may think (or at least it hasn't been for us so far...but check back with me in a few weeks when everything is finalized!).
Step 3: Choose a handful of candidates to consider. I used the three step process of: phone interview, in-person interview with just me, and then an invite to the house to meet the boys. I started with about 10 phone interviews, 4-5 in-person interviews, and then 2-3 over to meet the boys. The interview process was quite tedious, but important. It took about a week to 10 days.
Step 4: This may overlap with Step 3, depending on your comfort level. Check references and get background checks. I used the background checks provided by sittercity.com, but based on my nanny's previous employment, I trusted that she had passed more significant background checks. Obviously, the length of time it takes to complete this step varies.
Step 5: Make your offer, hire your nanny, and create a contract (google "nanny contracts" and lots of samples will come up). Start familiarizing yourself with the requirements of becoming an employer. Here is some reading:
Stay tuned for more!
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