Starting July 1, 2008, the IRS is increasing mileage reimbursement from 50.5 cents a mile to 58.5 cents a mile.

When two families employ a nanny they should commit to paying wages when a family is on vacation or doesn't need nanny care.  A cost saving solution is when all three parties - family, family, nanny - take the same vacation time.  If that isn't possible then each family should pay the nanny's wages when they go on vacation and the nanny should also get a certain number of paid days off to use for her own vacation planning.

 Most nannies surveyed do not have a holiday on President’s Day.  Traditional holidays given off, with pay, include Memorial Day, July 4^th, Labor Day, Thanksgiving, Christmas Day and New Year’s Day.  Many families also pay the nanny for the day after Thanksgiving.  Sometimes, depending on when the holiday falls during the workweek, nannies will get Christmas Eve and/or New Year’s Eve off, too.

Thinking of what to give your nanny as a holiday bonus?  Cash is the most common; a gift equal to one week's salary is customary.  Gift certificates and gift cards are also great ways to show your appreciation.

How do you communicate with your nanny?  Have her keep a daily nanny log for each child that details their schedule and what activities they have done during the day.  Have the nanny be responsible for the log book and ask her to carry it to whichever home she is working at that day.  This way you can always read about your child's day.