4 Financial Reasons to Consider Share Care

If you haven't yet heard of Share Care, you're missing out on a popular trend. Share Care is when two families share the cost of a single Nanny. This Nanny cares for the children in one or both of the family’s homes, and the families then split the cost of the Nanny’s salary. Sound good? It is. Not only is share care a great way for children to interact with each other and learn how to get along from a young age, it's a financially viable option for many families who may be unable to afford a private Nanny for their kids.

Read on to discover 4 financial benefits of Share Care. 

1. Salary: With hourly rates for Nannies easily topping $23-25, some families may be unable to pay $900 - $1,000+ per week for 40 hours of childcare, but could probably afford half the Share Care rate of $30-40/hour if they shared a Nanny with another family.
2. Benefits: Most families would love to give their beloved Nanny the benefits she deserves, such as medical and dental insurance, and even make contributions to the Nanny's retirement account. But even if families have the best intentions, other financial obligations can get in the way of Nanny benefits. With Share Care, families can split the cost of these benefits for the Nanny, ensuring that she's well taken care of, yet without a significant burden on either family's bank account.
3. Nanny car: Sometimes parents provide a car for the Nanny to use while taking care of the kids. If you share a Nanny with another family, it could be convenient and cost effective if one of the two families has a Nanny car available. This way, one family would reimburse the other family for half the cost of  gas/wear/tear on the use of their Nanny car at the current government rates. If neither family has a Nanny car, you could split the cost of reimbursing the Nanny for costs incurred on her own vehicle if she uses it during her work hours.
4. Telephone: Another expense parents sometimes forget is a Nanny phone. Whether you provide a cell phone to be used during work hours, or you reimburse your Nanny for calls and texts made on behalf of your family, splitting the cost of a phone bill with another family is just another great reason why you should consider Share Care.

Want to learn more about Share Care?  Attend one of Chirp's workshops at Natural Resources, 1367 Valencia St., San Francisco.  Information and scheduling:  https://www.naturalresources-sf.com

 Photo credit: Travis Swan/flickr

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