Working as an in-home sitter ... Is it worth it? (Houston: daycare, house)

[Nicole8061]

Originally Posted by descovy

Would you consider getting a job at a daycare? My husband lost his job while I had 3 kids under 4. Working elsewhere was out of the option. This was a church daycare but they cut me a great deal on the kids, and I even nursed the baby on my lunch hour.

Descovy, how much do daycares pay in the Houston area? And what qualifications do they require? Thanks for the info

[pastandfuture]

You really need to think through the logistics and operating costs of being an in-home baby-sitter as an adult running a business (which is what you will be), not as a teenager earning some casual cash.

Just some things to consider in your business plan:

Since employer parents presumably will themselves be leaving very early for what might be lengthy commutes, you will need to be there even earlier in a sort of domino effect. For example if they leave at 6:00 AM, you'll need to be there earlier than that. Depending on where you and they live, this may require you to leave much earlier than that, and also to get up (and get your baby up and ready) even earlier than that. Do not underestimate the time and brutality of many commutes in the Houston area.

And you will have to do this every single workday morning. So you will need a very reliable vehicle, plus a back-up Plan B in case the vehicle breaks down.

You will also have deal with the costs of extra gasoline, more frequent maintenance like oil changes, new tires, etc. due to a commute.

Will you be able to charge enough to offset these inflexible overhead operating costs? After factoring in these costs - and income and FICA taxes - will you actually be able to make a profit? (You cannot "write off" these commuting costs on your taxes, any more than any other person can write off their to-and-fro transportation costs to their workplaces.)

You will need to explain to a prospective employers who you have lined up as a back-up babysitter, if you or your baby are sick, or if there is some other emergency which prevents you from showing up.

Also - what about the reverse situation? What if the parents are delayed returning home in the afternoon? You will not be able to leave their children alone - no matter how late the parents are. The good part is you will then be able to charge them huge late fees. But will having to stay overtime create other inconveniences in your schedule? You need to think that out.

Also, you need to make arrangements about where you can leave your baby if it is sick (I doubt prospective employers will be very happy if you bring a sick baby to their home to infect their own children).

There are also possible costs of having yourself "bonded" - which some prospective employers might demand.

Do you plan to work as as an independent contractor or just as an employee (this makes a difference in who has to be bothered with paying/withholding FICA taxes).

[descovy]

This was almost 10 years ago. I made $8 something an hour... Most teachers did $10-12. I was an assistant in the 2 yr olds class.

Every daycare/preschool has different requirements. I did not have a degree in early childhood if that's what you are asking. To be an assistant, that would be fine.

I was a mom. That was my experience. I had a 4yr old, a 2 year old, an infant, and a good work ethic.

I did this because of a financial crisis. But I actually stayed on for 2 more years because my kids loved the place, and we were treated well. I made good friends with my co workers (something I craved as a stay at home mom) The money wasn't great, but it kept us afloat in the bad times. And when we're on our feet, the supplemental income was nice.

[DSL_PWR]

I think the hardest part of this equation is going to be finding someone who will want you to watch 'their' kids while you are also caring for 'your' newborn. I think that will be a minor roadblock but doesn't make it impossible.

What are your credentials? CPR cert? AED cert? Any other education pertaining to childcare or the likes?

[kreeyax]

Originally Posted by pastandfuture

Do you plan to work as as an independent contractor or just as an employee (this makes a difference in who has to be bothered with paying/withholding FICA taxes).

You can't just decide to be an independent contractor and withhold your own taxes. If a parent pays the nanny directly (without going through an agency), then they are considered a household employer and are responsible for paying the taxes. Some info:

https://www.care.com/homepay/whats-w...tor-1212110431

Originally Posted by DSL_PWR

I think the hardest part of this equation is going to be finding someone who will want you to watch 'their' kids while you are also caring for 'your' newborn. I think that will be a minor roadblock but doesn't make it impossible.

Yep. We had a nanny watch our little one in our home for a few years and there's no way I would have hired a nanny who was bringing their own kid. If I'm paying for in-home care I want their full attention on my child. Too much can go wrong with an infant/toddler if they aren't supervised at all times!

[descovy]

I think the kind of arrangement the OP is hoping for, is the kind of arrangement made between good friends or family.

For example, I would consider letting my friend or sister babysit my child while watching hers.

But you can't just move to town, as a stranger and make this arrangement happen. No one will go for it.

People who are desperate enough to hire a stranger with a baby won't have the funds to pay her appropriately. People who can afford it have much better options.

[descovy]

What kind of job is your husband moving for? Does it have predictable "9-5" type hours? If so, consider working restaurants/retail on evenings & weekends when he is home to take care of baby. I've done that as well, and its completely doable.

[pastandfuture]

In fact, you most certainly can set yourself up as an independent contractor and withhold your own taxes IF:

An independent contractor offering services (e.g., in-home baby-sitting) can set up a number of corporate or corporate-like entities (e.g., S-corporations, LLCs).

The founder of the entity (the baby-sitter) becomes an employee (usually the sole employee) of the legal entity (Baby-SittersR'Us).

The parents (for whom the baby-sitting is done) make out the payment checks directly to Baby-SitterR'Us - not to the baby-sitter herself as an individual. The legal entity Baby-SittersR'Us in turn pays a salary to its employee the baby-sitter. And the real employer (Baby-SittersR'Us) is the one who must withhold FICA or or self-employment taxes. Not the parents - since they are not the direct employers of the baby-sitter, and she is not their "household employee".

The fact that Baby-SittersR'Us has only one employee - (the babysitter herself) who is the one being paid a salary and also the one doing the withholding is irrelevant to the legalities and tax requirements.

Not that I think too many baby-sitters or nannies set themselves up as LLCs companies or whatever. But it most certainly can be done legally and is done by many other independent contractors for tax purposes, limited liability, etc...).

[Tassy001]

You are coming from out of state with no experience and no references? There is NO way - I would hire someone, I did not know, who had no experience, and no references to baby sit my child anywhere.

[Meyerland]

Some small gyms hire people to work in the day care area and let them bring their child. My cousin did that. You would have to find one that didn't have restrictions on young children.