I will become this magazine’s editor starting with the September issue. To help ensure that I’m prepared to take on this exciting new role, my husband and I decided to hire a nanny to care for our two young children while we work. Having a nanny come to our house will free up time that I previously spent running our children to and from day care. And because I work from home, I can enjoy lunch with my kids or take a walk with them when I need a break from my desk.
The convenience of having an in-home caregiver for your kids comes at a premium price and with considerable tax ramifications. The national average weekly rate for a nanny in 2022 was $701 for one child or $726 for two, according to the most recent Cost of Care survey from Care.com. That compares with $268 for one child or $510 for two children at a daycare center. And because a nanny is a household employee, the IRS requires you to withhold and pay tax if her income from the nanny job reaches a certain annual minimum threshold — for 2023, it’s $2,600.
