Providing benefits for your nanny is something that needs to be well thought out before your nanny is hired. You have no legal obligation to provide your nanny with benefits, even if they are full time.
That being said, you should consider that doing so will give your nanny a sense of appreciation. Additionally, offering benefits will be an incentive to not only remain a loyal employee but to also put their best foot forward in terms of employment.
Think about it, how far would you go for a boss who doesn’t provide you much beneficially? It would probably be pretty easy to just call it quits without any notice. You would probably consider it from time to time anyway. But having an employer that shows support and care for your well-being by offering certain benefits would change that in a big way. People who feel appreciated will often go the extra mile.
When you are considering which benefits to offer your nanny, think about what you are asking of them. They will likely be driving to your house, you will always need to be able to reach them over the phone and they will probably be with your children through at least one meal period.
That’s a great place to start. Mileage reimbursement, a cell phone and meals can be provided for your nanny in order to help them meet your needs as well as theirs.
In addition to this, if you have a full time nanny, consider that they may not be getting health insurance elsewhere. It is common for an employer to offer health insurance to any full time employee after an agreed upon probationary period (typically 60-90 days). If you have a part time nanny, you could offer to cover a portion of their health insurance payment. More information on nanny health insurance here.
Employer taxes will also need to be dealt with. You have options here too. Many employers choose to pay their nanny’s portion of the taxes, but that is totally up to you. You can find more information on “Nanny Taxes” here.
Nannies are human too. Sick days and vacation can be expected and you may want to consider offering a certain number of paid days off or an allotted amount of PTO (paid time off).
According to HomeWork Solutions.com, a nanny can typically expect 5-15 days of PTO and 6 or more paid, federal holidays which should always include New Years, Memorial Day, 4th of July, Labor Day, Thanksgiving and Christmas.
Lastly, consider rewarding your nanny for a job well done. If your nanny has been doing an exceptional job, a nice Christmas or annual bonus would go a long way in showing your appreciation.
Once you are no longer in need of a nanny, you will want to have a mutual agreement that upon suspension of services, benefits will be discontinued. This should be discussed before employment begins so that there isn’t any confusion when that time comes.