The Pros and Cons of Nannies Versus Au Pairs
If you want to keep your young children at home, hiring a nanny or an au pair may be the route to go. In general, a nanny is someone you hire through an agency or a personal reference. She may or may not live with you. Also, she may or may not assume other household duties, such as laundry or light cleaning.
An au pair usually exchanges live-in child care at a lower hourly wage for the opportunity to live and work in the United States for a set period of time. Some au pair agencies are regulated by the U.S. State Department.
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When hiring a nanny, take time to research the range of prices paid in your area (typically $11 to $15 an hour, dependent on educational or experience level, or $1,200 to $1,500 a month for a live-in nanny). Also make sure you know the federal and state laws that will apply to taxes and overtime. Even if you use an agency, you'll need the comparisons in order to know if it's the right price for you.
The Pros and Cons of Nannies
Although they are undeniably expensive, hiring a personal nanny has many advantages, and a few pertinent disadvantages.
Pros |
Cons |
One-on-one care in your home |
You rely on one person |
Your child may form a close attachment |
A nanny may abruptly quit |
Scheduling flexibility |
A nanny's lingering illness may disrupt your schedule |
Avoiding a morning rush |
Unsupervised care, unless you hide a nanny-cam |
May help with housework |
May not have transportation |
Available to include activities |
Children may be more isolated |
Available to care for sick children |
Expensive and complicated payment requirements |
The most restrictive aspects to hiring a nanny include the exorbitant cost and the fact that nannies are neither licensed nor regulated by any governmental agencies. This means parents are responsible for the process of ferreting out reliable, trustworthy nannies. Although it certainly behooves all parents to hire nannies from reputable agencies that research their employees' backgrounds, as well as obtain and check extensive references, this also increases the expense.
Nevertheless, for many single mothers, a nanny can be the answer to their prayers. If you have a large house, ideally with a private room and bathroom, and more than one child, you can lower nanny expenses by offering room and board. You need to realize, however, that doing so rarely means you are hiring a full-time housekeeper and babysitter. Nannies expect a schedule and would likely consider additional time spent with the children as cause for increased pay.
Decisions that could affect the cost include these:
Level of educational or formal training: All nannies should have CPR and first aid training, but insisting on a degree in child care or early childhood education can boost the price significantly.
Level of experience: Obviously nannies with vast experience warrant a higher salary, but keep in mind that having a young nanny can have its advantages — she'll have a higher energy level and not be so set in her ways, for instance.
Live in or live out: You can pay less for a live-in nanny, but you have to weigh the convenience or inconvenience and what works best in your situation. Federal law does not require you to pay overtime to a live-in nanny, but state laws can differ.
What services you request: If you want your nanny to do the laundry, run errands, pick up the children or shuttle them to and from activities, work longer hours, or cook, the price will rise appropriately.
Hours needed: Some states require that you pay overtime after eight working hours per day; other states require overtime for any hours worked over 40 in one week.
Agency fees can vary, but they are generally a flat fee or a percentage of the nanny's annual salary for the first year (usually ranging from $1,500 to $3,000). Nannies are usually paid well above minimum wage (approximately$11 to $15), and keep in mind that you will be required to comply with federal and state employment laws. You will pay Social Security, Medicare, and state unemployment taxes. You will also be required to file an I-9 and a W-2 at the end of each year.
Depending upon which state you live in, you may have to pay for worker's compensation insurance, and, if the nanny will be driving your car, additional insurance costs. You can hire a payroll service to handle the paperwork for a reasonable monthly fee (less than $30 a month) that would calculate and deduct taxes, help you make quarterly payments, and assist you in filing all necessary paperwork.
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If you hire an illegal immigrant or a nanny “off the books,” you risk an IRS audit that could cost you hundreds, or thousands, in back taxes and penalties. When you pay a nanny “on the books,” you not only comply with the laws, you make it possible for her to receive Social Security benefits, as well as worker's compensation and unemployment benefits.
If you're finding and hiring a nanny without going through a placement agency, it's money well spent to perform a comprehensive background check. By shopping around, you should be able to find out everything you need to know for a reasonable fee — around $100. But be sure you have permission from the prospective nanny, as required by the Fair Credit Reporting Act (FCRA).
The Pros and Cons of Au Pairs
Au pairs are nannies who come to the United States for a one- or two-year cultural exchange. A number of governmental agencies match parents and au pairs, who are legally allowed to work 45 hours a week for less than you would pay a professional nanny — around $6 an hour for a live-in au pair, compared to $11 and up for a nanny.
Au pairs are generally between the ages of 18 and 26 and are required to have a high school education and to be proficient in English. If you have an infant under the age of two, au pairs are required to have 200 hours of infant-care experience. Au pairs are also required to have eight hours of safety training and 24 hours of child development education.
Pros |
Cons |
Half the cost of nannies |
You pay airfare and agency placement fees |
One-on-one attention |
Two-year maximum stay (most leave in one year) |
No limit on number of children |
Cannot work more than 45 hours per week |
No federal or state taxes due |
Cannot perform household duties |
Screened by government agencies |
Cannot interview in person |
Scheduling flexibility |
Cannot work more than ten hours in one day, or overnight |
Cultural exchange works both ways |
You pay $500 for educational allowance |
An average au pair can cost a whopping $14,000 a year, which equates to about $270 per week, including agency placement fees and educational allowance. You will also need to provide a private room and live within one hour's drive of an agency. You can find a list of reputable agencies through the U.S. State Department website.
