When the time comes to hire a nanny — especially for the first time — families often don’t know where to start. The first priority is obviously finding someone you trust to care for your kids. But after you’ve found that perfect person, what’s the next move?
At Care.com, we have lots of members in the Bay Area, so we wanted to share tips that are specific just to you! Follow these general nanny hiring tips, but also be aware of these seven things when searching for a nanny:
- Minimum Wage
Minimum wage is $13.00 per hour in San Francisco and $12.00 per hour in San Jose. This is higher than both the federal minimum wage ($7.25 per hour) and the California state minimum wage ($10.50 per hour). Whenever multiple minimum wage rates apply, you must always pay the highest rate.
- Nanny Taxes
If your nanny earns $1,900 or more in a calendar year, you must withhold Social Security, Medicare and state disability taxes from her pay — or cover these taxes for her. Federal and state income taxes don’t have to be withheld, but it’s a good idea to do so. Nannies that have to cover their own income taxes risk having a large tax burden and underpayment penalties at year-end.Learn more about paying nanny taxes.
- Sick Time
Families in this area are required to provide up to 40 hours of paid sick time to their nanny every calendar year. Sick time accrues at 1 hour for every 30 hours worked — and can roll over from year to year, as long as the total sick time accrued is not more than 40 hours. Any unused sick time does not need to be paid out if you have to hire your nanny.
- Workers’ Compensation Insurance
In the Bay Area, you also have to sign up for workers’ comp. This insurance policy provides financial assistance to your nanny if she is ever hurt or sick on the job. It covers your nanny’s medical expenses and lost wages and protects you from lawsuits because employees that accept these benefits generally forfeit their right to sue.Learn more about Workers’ Compensation Insurance.
- Wage Notice
When you hire a nanny in the Bay Area, you have to give her a wage notice. It should include:
- Her hourly rate and overtime rate
- Her regular pay day
- Your name, address and phone number
- The name, address and phone number of the workers’ compensation insurance carrier you are using
Go above and beyond and create an entire nanny contract. It includes all of this information, but also things like job responsibilities and holidays. Check out this sample nanny contract.
- Overtime
In the Bay Area, your nanny can earn weekly and daily overtime. According to Wage Order 15 and the Domestic Worker Bill of Rights, your nanny must be paid overtime for all hours worked over 9 in a day and/or 40 in a week. however, if you hire a live-in nanny, you must pay overtime for all hours worked over 9 in a day and/or 45 in a week. Find out more about what a live-in nanny costs.
- Mileage
If the nanny drives her own vehicle on the job, she must be reimbursed for mileage. The current federal mileage reimbursement rate is 56 cents per mile and covers the cost of gas, plus general wear and tear on her vehicle. (Your nanny’s commute to and from your home doesn’t count.) Figure out How to Reimburse a Nanny for Gas and Mileage.
* The tax information contained in this article should not be used for any actual nanny relationship without the advice and guidance of a professional tax advisor who is familiar with all the relevant facts. The information contained herein is general in nature and is not intended as legal, tax or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for your specific circumstances and may require consideration of other matters.
