How to Pay a Caregiver
There are many different scenarios in which a caregiver might be watching a child. Some will watch young children all day, every day of the week, while some only watch older children who come off a school bus until the parents come home from work. Some caregivers do both interchangeably. Obviously, there are many different pay scales to consider for your particular situation. Here is a breakdown of the legalities of paying your caregiver the right way.
Things You'll Need
- Signed agreement
- Appropriate tax documents
Instructions
Check that the home caregiver you are interested in using runs a regulated home daycare or family daycare. Different states have different laws concerning when a home daycare needs to be licensed. This usually depends on the number of children the caregiver will be watching on a steady basis, as well as the ages of the children that will be under her care. The National Association for Child Family Care has a list of accredited home daycare providers throughout the U.S. The link to the website is provided below in the Resources section. Research how much the going rate is in your area for paying a child caregiver who works from her home. You will more than likely discover that parents will pay varying amounts, and you are probably safe with finding the average between the lower amounts and higher amounts. This amount will most likely be between $7/hr to $15/hr. PayScale.com offers a handy statstical chart that might interest you. The link to this website is provided below in the Resources section. Decide upon an acceptable payment amount and schedule for payment that you and the caregiver agree upon. It is best to pay your caregiver with a check, as this lets you both have a record that payment has been made. Paying with cash is very convenient for the caregiver but does not help you, if problems arise in the future, to prove that you have made your payments as stated in a written agreement. Avoid the temptation to pay your caregiver "under the table." The IRS checks for these types of situations during audits, and you do not want to have to owe unpaid taxes that could add up to a hefty price tag. Likewise, if your caregiver ever goes to file for Social Security and reports your payments as income, you can bet you will have to pay back those taxes, as well as penalties for not reporting this as you should. A regulated home daycare caregiver should have legal forms for you to sign upon acceptance of her services. States differ in what forms they require, but the IRS requires you, the parents, to fill out a W-10, so the caregiver has accurate records on the parent employers. Get everything in writing. Before making your first payment to a caregiver, you should make sure that you both agree on every aspect of how you want your child taken care of, and what responsibilities you expect of the caregiver. Without a written agreement, you could find yourself up a creek without a paddle, if any problems should arise in the parent/caregiver relationship. Include pertinent information in the agreement, such as the times the caregiver is to have your child and the days of the week she will be on duty. Of course, you will also want to place the agreed amount of payment per week or month in the agreement as well. You may also want to include any overtime charges you are willing to pay, should you be late picking up your child for any reason on occasion. This is a good way to show the caregiver that you respect her time, and are willing to make allowances for when you are late.
