Families tend to struggle with making the mental shift of becoming employers without initially realizing it. This leads to not realizing the need for providing benefits, let alone the work it takes to set them up. It can trigger emotions that deem the task as an incredible undertaking.
So oftentimes, the responsibility of educating families on the need for benefits and how to provide them falls solely upon the nanny. Without the backing of a formal HR department, they need to be their own advocates. This can be burdensome and a little overwhelming because advocacy is an additional layer to an already unique relationship dynamic.
Here are some ideas for how you can make the case for families to provide benefits for you as a nanny.
Healthcare
Ethical
Explain the importance of staying in tip-top shape to do what you love, care. Maintaining a perfect bill of health guarantees longevity in a role that requires focus, physical, emotional, and mental strength. Having access to a good doctor, dentist, therapist, and programs inevitably supports the family’s well-being.
Practical
Traditional Healthcare Packages
Inform your employer that if they have less than 50 employees, they qualify for a tax write-off through the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). Individual plans can yield a reimbursement of $5,300, which is about ($441.67 monthly) and $10,700 ($891.67 monthly) for a family.
Alternate Health Insurance Contributions
Most common in the industry, are healthcare stipends—typically beginning at $300. These stipends are simply added on top of your pay every month. Additional contributions are often encouraged and appreciated due to the hefty expense of the healthcare marketplace.
Retirement
Ethical
Over the past two years, the country has been in a state of emergency due to Covid-19. During this time, it has shifted the values for many and magnified the importance of prioritizing our individual lives and futures. A child care provider’s future beyond employment should be considered due to the investment of time, stability, and more contributed to nurture a child and support the employer’s household. Everyone’s future matters—especially those dedicated to the care of your children.
Practical
ROTH IRA
Dollar-to-dollar or percent-based (typically 5%) contributions can be made to match the Nanny’s contribution towards a ROTH IRA. The ROTH IRA is post-taxed and has a maximum contribution of $6,000 if you are 49 or younger and $7,000 for Nannies 50 or older.
Simple 401K
Through GTM Payroll, you can start a Simple 401K through the National Household Employers Association. Nannies have the potential for pre-tax savings via payroll deferral of up to $13,500; those 50+ years old can defer another $3,000 as a catch-up contribution.
Worker’s Compensation
Ethical
Families often refer to nannies as being, “a part of the family.” There’s a clear understanding of the value Nannies offer and are an extension of the family they support. A nanny’s illness and/or injury directly impacts the family’s dynamic. Nannies invest their physical abilities to run, jump, rough house, and engage with the children. They risk potential injuries as a result of their commitment to “play.” Medical bills are expensive, but when covered, this benefit provides peace of mind to heal and recuperate in the time suggested without feeling rushed to return unwell.
Practical
Providing workers compensation protects the employer from being liable for injuries and failing to do so, could result in penalties. For example, in New York, there’s a $2,000 penalty per every 10-day period of non-compliance. Additionally, the fine for a criminal conviction is up to $50,000. Employers may be surprised to know that they could be on the hook for at least a portion of their employee’s lost wages and medical costs. Additionally, these costs are often in parallel with finding a temporary replacement.
Families and nannies alike must educate themselves to ensure a work environment that reciprocates respect, care, and longevity. It’s important to choose families that are equally invested in you as you are in their family.
