The Nanny Parent Exchange: Open Communication Between You and Your Nanny

 

When parents and nannies first begin working together there is a mutual understanding of the importance of open communication. But as time goes by, even with the best intentions, open communication often doesn’t happen. Everyone is busy, the kids are sick, the holidays are approaching—there’s always a reason why that potentially awkward conversation needs to be pushed pack one more day.

Adding to this pragmatic challenge, parents and nannies can find it difficult to discuss important and yet emotionally charged issues. Is the child’s behavior getting out of control? Is the nanny not getting the laundry or dishes done while the baby naps? Does the nanny want more money? Are the parents chronically late coming home? What was once a small issue can escalate between nannies and families if open lines of communication are not in place, leading to annoyance and resentment.

Talking to your nanny about certain issues may be challenging—you may feel like she’s such a part of the family that you’re reluctant to tell her what to do, or you may be dealing with your own feelings of inadequacy as a parent for leaving your child with a caregiver. Chances are, every parent who has hired a nanny will feel face communication challenges at one time or another, as this New York Times article from 2010 describes.

Although written five years ago, the topic and themes woven through the article are still oh-so-relevant in 2015, and well worth a moment of your time to read—even if it simply helps you feel as though you’re not alone when it comes to nanny parent communication challenges.

The Nanny Parent Exchange: Open Communication Between You and Your Nanny

 

When parents and nannies first begin working together there is a mutual understanding of the importance of open communication. But as time goes by, even with the best intentions, open communication often doesn’t happen. Everyone is busy, the kids are sick, the holidays are approaching—there’s always a reason why that potentially awkward conversation needs to be pushed pack one more day.

Adding to this pragmatic challenge, parents and nannies can find it difficult to discuss important and yet emotionally charged issues. Is the child’s behavior getting out of control? Is the nanny not getting the laundry or dishes done while the baby naps? Does the nanny want more money? Are the parents chronically late coming home? What was once a small issue can escalate between nannies and families if open lines of communication are not in place, leading to annoyance and resentment.

Talking to your nanny about certain issues may be challenging—you may feel like she’s such a part of the family that you’re reluctant to tell her what to do, or you may be dealing with your own feelings of inadequacy as a parent for leaving your child with a caregiver. Chances are, every parent who has hired a nanny will feel face communication challenges at one time or another, as this New York Times article from 2010 describes.

Although written five years ago, the topic and themes woven through the article are still oh-so-relevant in 2015, and well worth a moment of your time to read—even if it simply helps you feel as though you’re not alone when it comes to nanny parent communication challenges.

Employer Paid Health Insurance: Should you be providing this benefit to your nanny?

There’s more to compensating your nanny than simply writing a check for her caregiving services once every two weeks. For instance, did you know that you can provide health insurance benefits to your nanny tax-free?

Although the Affordable Care Act has changed many aspects of income tax legislation, one thing is still certain—employers with household help can cover the cost of their employees’ health insurance policies without increasing their taxes. However, as with most tax laws, there are various caveats.

If you employ only one household employee, the easiest thing to do is have your nanny purchase a policy from any insurer. Subsequently, the amount of any reimbursement you give her for all or part of the monthly premiums will be tax-free, meaning both the employer and employee do not pay taxes on that amount.

If you employ two or more household workers: You must purchase a group policy through the Small Business Health Options Program (SHOP) in order for your contribution to qualify as non-taxable in the eyes of the U.S. government.

If you choose to purchase a policy through SHOP, you may be eligible for an additional tax break through The Credit for Small Employer Health Insurance Premiums, which provides a credit of up to 50% of every dollar contributed as long as the family pays for at least half of the employee’s premium, the average wage for all employees is less than $50,000 per year and the policy is purchased through SHOP.*

Employers with only one employee may also set up a group policy through SHOP to qualify for additional tax credit, but keep in mind that there is an administrative cost to set up and manage the SHOP account.

If you’ve been considering providing health insurance as a benefit to your nanny, now is the time—she’ll need a policy before the open enrollment in the Health Insurance Marketplace ends on February 15^th.

For more information and help navigating through the tax regulation labyrinth, we recommend you contact Breedlove and Associates for additional clarification on your family’s specific situation.

*Source: Breedlove and Associates

Employer Paid Health Insurance: Should you be providing this benefit to your nanny?

There’s more to compensating your nanny than simply writing a check for her caregiving services once every two weeks. For instance, did you know that you can provide health insurance benefits to your nanny tax-free?

Although the Affordable Care Act has changed many aspects of income tax legislation, one thing is still certain—employers with household help can cover the cost of their employees’ health insurance policies without increasing their taxes. However, as with most tax laws, there are various caveats.

If you employ only one household employee, the easiest thing to do is have your nanny purchase a policy from any insurer. Subsequently, the amount of any reimbursement you give her for all or part of the monthly premiums will be tax-free, meaning both the employer and employee do not pay taxes on that amount.

If you employ two or more household workers: You must purchase a group policy through the Small Business Health Options Program (SHOP) in order for your contribution to qualify as non-taxable in the eyes of the U.S. government.

If you choose to purchase a policy through SHOP, you may be eligible for an additional tax break through The Credit for Small Employer Health Insurance Premiums, which provides a credit of up to 50% of every dollar contributed as long as the family pays for at least half of the employee’s premium, the average wage for all employees is less than $50,000 per year and the policy is purchased through SHOP.*

Employers with only one employee may also set up a group policy through SHOP to qualify for additional tax credit, but keep in mind that there is an administrative cost to set up and manage the SHOP account.

If you’ve been considering providing health insurance as a benefit to your nanny, now is the time—she’ll need a policy before the open enrollment in the Health Insurance Marketplace ends on February 15^th.

For more information and help navigating through the tax regulation labyrinth, we recommend you contact Breedlove and Associates for additional clarification on your family’s specific situation.

*Source: Breedlove and Associates

How the California Domestic Worker Bill Affects You and Your Nanny

Overtime compensation can be a touchy subject, and one that both employers and employees can be loath to bring up—especially when that employee is practically a member of your family. But the fact is, nannies are domestic workers, and their overtime wages are mandated by the state of California and the Department of Labor.

You may be aware that as of January 1, 2014 the California Domestic Worker Bill of Rights was signed into effect followed by the U.S. Gov’t Fair Labor Standards Act (FLSA) in January 2015, which means your nanny is entitled to overtime pay. If this is the first you’ve heard of these laws, here’s how it works: Overtime pay is required if your nanny works more than 9 hours in one day or 45 hours in a seven day work week. Should this occur, she should be compensated for those hours at the applicable overtime and double time rate.

There are additional rules and requirements for special cases such as if your nanny is a live-in employee, if your nanny works over 12 hours in one day, nannies providing overnight care, or if she works six or seven consecutive days in a row, and these cases should be discussed with a tax or payroll professional such as Breedlove and Associates.

It is advisable that nannies keep a daily log of hours worked and submit this to the parents at the end of each pay period. This way, there will be no confusion, and both parents and nannies have a record of hours worked and paid.

As with your child’s behavior and schedule, overtime pay and compensation should be something you regularly discuss with your nanny to ensure that you are both remain satisfied with the employment arrangement. After all, if you care for your nanny, she’ll be better able to focus her attention on what matters most to you—your children.

For more information about nanny overtime compensation, contact Breedlove and Associates or Alyce Desrosiers at Chirp Connecting Families and Nannies LLC.

Photo credit: Travis Swan 

How the California Domestic Worker Bill Affects You and Your Nanny

Overtime compensation can be a touchy subject, and one that both employers and employees can be loath to bring up—especially when that employee is practically a member of your family. But the fact is, nannies are domestic workers, and their overtime wages are mandated by the state of California and the Department of Labor.

You may be aware that as of January 1, 2014 the California Domestic Worker Bill of Rights was signed into effect followed by the U.S. Gov’t Fair Labor Standards Act (FLSA) in January 2015, which means your nanny is entitled to overtime pay. If this is the first you’ve heard of these laws, here’s how it works: Overtime pay is required if your nanny works more than 9 hours in one day or 45 hours in a seven day work week. Should this occur, she should be compensated for those hours at the applicable overtime and double time rate.

There are additional rules and requirements for special cases such as if your nanny is a live-in employee, if your nanny works over 12 hours in one day, nannies providing overnight care, or if she works six or seven consecutive days in a row, and these cases should be discussed with a tax or payroll professional such as Breedlove and Associates.

It is advisable that nannies keep a daily log of hours worked and submit this to the parents at the end of each pay period. This way, there will be no confusion, and both parents and nannies have a record of hours worked and paid.

As with your child’s behavior and schedule, overtime pay and compensation should be something you regularly discuss with your nanny to ensure that you are both remain satisfied with the employment arrangement. After all, if you care for your nanny, she’ll be better able to focus her attention on what matters most to you—your children.

For more information about nanny overtime compensation, contact Breedlove and Associates or Alyce Desrosiers at Chirp Connecting Families and Nannies LLC.

Photo credit: Travis Swan 

Compensation for Overnight Care

When parents have an opportunity to leave their children in the care of a trusted nanny for a 'get-away' weekend, they often are in a dilemma about what is reasonable compensation. While it may be tempting to agree on a 'per diem' rate, the Internal Revenue Service dictates otherwise. The IRS considers nannies hourly wage employees and as such nannies receive an hourly wage for all hours worked, including overtime. Federal law does allow a nanny to sleep up to 8 hours without pay when working 24 consecutive hours, provided she is not responsible to get up to care for the child. If your child wakes up and requires care, your nanny is considered working and paid her regular hourly rate for that time. For most overnight care situations, a nanny receives her regular hourly rate until 10 PM and starting again at 6 AM. Parents often provide a 'bonus' of $80.00 for sleeping hours.

As always, discuss terms with your nanny before leaving for that much needed break to ensure that everyone is clear about compensation.

Babies Sleep Routines and Holiday Travel

This this time of the year, visits to family and friends often mean babies sleep in unfamiliar places and the normal routines are thrown off. For ideas about how to help your baby adapt, check out this resource from Zero to Three (and many other ideas on challenges in a child's sleep routines). http://www.zerotothree.org/child-development/sleep/sleep-challenges.html#sleepatgrandparents

Demystifying Health Care Reform - How to Get Medical Insurance for Nannies

Over the years of working with families and nannies I found that the majority of nannies don't have medical insurance and parents couldn't manage their budgets to provide this as a benefit. As you are aware, the Affordable Care Act has made medical insurance possible and mandatory for every citizen and legal resident. Effective January 1, 2014 every citizen and legal resident must have health insurance or pay a penalty. The information about how to obtain medical insurance can be complicated and shrouded in considerable political and legal arguments about the law. Since obtaining medical insurance is so important and needed among the nanny community, I'm providing here 2 simple ways to know what a nanny is entitled to and how to obtain insurance.

1. If a nanny expects to earn less than $15,856.00 of reportable income in 2014, she is entitled to free Medi-Cal. A nanny can sign up for it at http://www.coveredca.com or call 800-00-1506.

2. If a nanny earns more than $15,856.00 but less than $46,000 individually or $94,000 for a family of four of reportable income in 2014, she may be entitled to tax credits and subsidies to help pay for health care insurance. She can sign up at http://www.coveredca.com or call 800-300-1506.

If you or your nanny has any questions about entitlement call 800-300-1506 or go online to http://www.coveredca.com.