Rates, Hours, Benefits and Other Issues

Domestic employees are in very high demand and therefore this has become a very competitive market. Consequently, if the salary offered by the family and the hours of work are not calculated correctly, the domestic employee may not accept your offer, or if the offer is accepted, it may be accepted while the employee continues to pursue other opportunities where the salary is higher and/or the hours are less per week. If a better opportunity should so arise, the employee will leave and the family will be back to square one.   Care should be taken in estimating the number of hours that the domestic employee is expected to work per week, so the actual hourly rate is commensurate with market rates. (Market rate is $10/hr for full time and $12/hr for part time employees)

Salary
With out a doubt, private in home child care and full time domestic care is the most expensive alternative a family has in their range of choices.    If a family cannot easily afford the going market rate of $10 - $12 per hour for a well qualified employee then other options should be explored. Salaries vary depending on the domestic employee qualifications and experience, the number of hours that the employee is expected to work, the number of children to be cared for, the job responsibilities and the size of the home also play an important part in determining the salary level. The salary should be calculated based on an hourly rate of $10 to $15 per hour and sometimes more.

If you decide to hire a poorly qualified person thinking that you can get by with paying a lower salary, you are probably making a mistake as you will, most likely, be very disappointed with this person's job performance.   (The old cliché, "you get what you pay for") is definitely applicable here!

Work Hours
The hours that the domestic person is expected to work should be determined and agreed upon prior to employment. A work agreement will be provided to you for this purpose. A typical work week should be somewhere between 40 and 60 hours.    By law, any hours worked after 40 hours must be paid at the rate of time and a ½. (See United States labor laws.) Be aware, that any hours that may include weekends or nights greatly decrease the applicants whom may be  interested in your position.

Benefits
They are not mandatory, but they should be included at the customer's discretion and typically include:

  • One week paid vacation per year
  • 5 paid holidays per year
  • 5 sick / personal days per year
  • Mileage reimbursement for work related personal auto usage
  • Medical insurance

Compliance Issues
It is the responsibility of the employee to comply with all laws governing employee wages and benefits including the withholding of Social Security and FICA taxes from the domestic employee's salary. Please consult with your accountant as income tax requirements tend to change frequently.

Our family travels often.  How should I handle this situation for a permanent employee who works in my home and is not traveling with me? In this situation, the correct thing to do is to leave reasonable assignments for your employee to do during your absense.  Pay days should not be cut due to your travel plans.  Your employee depends on his or her steady income to meet their own financial obligations.  Gaps risk their  financial stability.

 

 

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