Tuesday, October 9, 2007

Nannies around Washington, D.C., can earn an annual salary of $40,000, according to early returns of a survey conducted by a Northern Virginia nanny services company.

"Families hiring nannies always wonder how much nannies are paid," says Kathleen Webb of HomeWork Solutions, a provider of nanny payroll and employment tax services, which is running the survey. "They often need some salary information simply to find out if they can afford a nanny at all. It turns out that Washington, D.C. area nannies are paid quite well."

Full-time, live-out nannies are paid $30K to $40K per year depending on their schedule, averaging in the $15 per hour range, said Webb. This is considerably better compensation than that which area day care centers and private pre-schools offer.

Webb added that the HomeWork Solutions? team found two noteworthy statistics when analyzing the responses. More than half of Washington area families do not pay their nanny for overtime. Wage and hour suits currently exceed sex discrimination suits and these families are leaving themselves open to considerable liability should the relationship with the nanny sour, Webb said. It is important to recall that Washington Redskins owner Dan Snyder was forced to pay his former nanny $44K in unpaid overtime when she filed a grievance after her dismissal.

Many families appear unaware that the Fair Labor Standards Act applies to nannies and that they, too, are entitled to overtime compensation. Webb encourages families to protect themselves by both insisting on a time-tracking system in the home and having a written work agreement with the nanny that stipulates her hourly wage.

The second unexpected finding is that fewer than one in five nannies is reimbursed for the use of her personal vehicle to transport her employer's children. The nanny is expected to pay gas, maintenance and depreciation out of her salary to chauffer the children to school, tutors and other activities. "This is one of the top 10 reasons nannies quit," Webb said.

Families invited to take the survey online at 4nannytaxes.com/WashingtonDCNannySalarySurvey.cfm. The survey will remain open until February 2008.

Families can view the complete preliminary analysis at 4nannytaxes.com/WashingtonDCNannySalarySurveyResults.cfm.

HomeWork Solutions specializes in nanny tax compliance services, offered to families nationwide since 1993. For more information, visit 4nannytaxes.com.