How much should I charge a part time nanny who has here own seperate apt for rent?

Question

I need someone to watch my 2 schoolage children afterschool, 3 hours a day and then possible take them to school 2 to 3 days a week. we have a upstairs studio apartment we currently rent out for $650 a month. She could live up there and I was wondering if I payed her $9 a hr, and have her pay the difference (working 15 to 18 hrs p/week and all utilities is included) Is this fair or good or bad?

Answer 1

Pay he $6/hour and rent free... then she has less income, ergo less taxes, and you don't get rental income, ergo, less taxes.

Answer 2

I think your income taxes might get mixed up between the income you are receiving for rent, and the child care payments you might be able to deduct. Keep them separate.

Answer 3

Seems to me like you should just pay her for the child care and charge her the rate you usually charge for the apartment, and don't mix the two things together.  There are bound to be weeks when she works more or less hours than others, and deducting her pay from her rent might get complicated.  Just leave the two things separate.  As for the pay rate, that should depend on the going rate in the area where you live, her age and experience, and the type of care that the children will need.  Don't forget that gas is very expensive these days and she should be compensated for that if she's driving the kids to school.

Answer 4

Pay minumum wage and no rent at all

This way if you fire her she has to leave.   If you charge her as much as a dime for rent she gets tenant status and you will have to evict her through the courts.