While providing benefits for nannies and other household employees is largely optional and seldom required by law, they greatly help the household employer attract and retain high-level employees. By providing an attractive employee benefits package, the employer is helping to maintain a satisfied workforce. Satisfied employees equal a happy workplace, which in turn equals a happy family and life for the employer. Here’s a look at some employee benefits parents can offer nannies.
Offering employee benefits helps the employer too!
EMOTIONAL BENEFITS:
- Attracts high-level employees
- Practices preventative care, which reduces absenteeism
- Creates a happy, satisfied employee, a happy family and a happy employer
- Helps retain valued employees: often the employee works better and longer for a job they are happy with
FINANCIAL BENEFITS:
- Saving on premiums paid through employee deductions for health/dental insurance through an approved pre-tax plan
- For every dollar of premium deducted from the ‘Gross Pay’, the employer and employee will see tax advantages
- Employers will save on Social Security and Medicare taxes
- Employer avoids costs for replacing employees who are not happy with their job (such as placement search fees, hiring temporary help, and new employee training)
Some popular household employee benefits include medical or dental insurance, bonuses, annual pay increases, flexible hours, housing allowance or live-in arrangement, vehicle use or vehicle allowance, or technology (cell phone, iPad, etc.). But employee benefits are not necessarily all perks that an employer must purchase for the employee; some nannies look for no more benefits than just a few extra days off, extra pay on working holidays, and professional treatment.
Like medical coverage, retirement plans are a standard part of U.S. corporate employee benefit packages. While not legally mandated to offer employees a retirement plan, employers may consider doing so in order to attract and retain the best employees. If a retirement plan is offered, the employer must comply with IRS tax requirements and administrative requirements.
Another potential benefit to consider is education reimbursement. Continuing education, training, seminars, and conferences play an important role in helping promote professional growth and elevate employee performance—making the educational benefit a win-win proposition for both the employer and employee.
Some employers offer employees prepaid legal services as an employee benefit. Prepaid legal services may involve citizenship, divorce, adoption, and so on, and create a unique value to employees who require legal advice and representation. Prepaid legal services may be available through a subscription plan. Employers need to clearly state in the work agreement and the employee handbook the premium requirements for prepaid legal services, and if such services are provided at the employer’s discretion.
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