Factors

• The number of children cared for, whether the position is full or part time and whether or not the family provides room and board for the nanny all play a role in setting a fair salary, according to the International Nanny Association. Another factor that impacts salary is specialization. A nanny who specializes in a particular facet of infant care such as newborn care, sleep training or multiples typically earns more than non-specialists.
  
  

Identification

• Nannies who are not provided room and board and part-time nannies earn from $7.25 to $20 an hour and full timers who work 40 hours a week or more earn $350 to $1,000 weekly, according to the International Nanny Association's 2009 income survey. That's an average of $14 an hour for part-time nannies and $675 a week for full-time nannies. Live-out nannies who work more than 40 hours in a week typically earn 1.5 times their regular hourly salary for each hour more than 40. Live-in nannies earn similar salaries to full-time nannies who live outside the home.
  
  

Significance

• The average salary for nannies refers to compensation received for the care of children of various ages in 2009. Infant care is included in the average. Some nannies may request higher-than-average compensation for the care of infants. The parents and nanny should work together to determine a fair wage for the care provided and identify income and benefit specifics in a contract up front.
  
  Whether a nanny is paid by the hour or earns a weekly salary, the pay for each hour of work must be equal to or greater than the current federal minimum wage. Overtime pay must be at least 1.5 times the minimum wage. Overtime rates do not apply to live-in nannies who earn at least minimum wage for each hour worked within a seven-day week.
  
  

Benefits

• In addition to salary, most full-time nannies receive paid vacation time, paid holidays off and paid sick days, according to the International Nanny Association. The client also pays a percentage of or full health insurance premiums in most cases. The average vacation allotment is two weeks and eight to 10 holidays.
  
  

Considerations

• Nanny employers are required to pay Social Security and Medicare taxes on paid household employees who earn more than the established threshold amount, according to the IRS. The threshold amount varies by year. For example, the IRS set the 2010 threshold wage for household employees at $1,700. An employer can either withhold the nanny's share of Social Security and Medicare taxes at a rate of 7.65 percent of each wage payment or pay the tax from personal funds. The other 7.65 percent is the employer's responsibility.