Do you need a nanny contract?
Yes, you do. While it's true that some nannies may work without one, I am not one of those nannies. I am a childcare professional, and I expect to be treated as one.
Do you need to pay taxes on your nanny's paycheck?
Legally, nannies are employees, not independent contractors. It's important to me that I be paid on the books, and it protects you too. If the thought of navigating nanny taxes is daunting, don't worry: there are services that can do it all for you. Some of my previous employers have filed either by themselves or through their accountants, but I've also worked for people who went through www.myhomepay.com/ and it worked very well for all of us. It's up to you how you want to approach it.
How should you be paying a nanny?
Something else to consider- while most states do not require live-in nannies to be paid overtime of time-and-a-half over 40 hours in a week, every state requires time-and-a-half for live-out nannies. Since live-in nannies often work well over 40 hours without the promise of a specific overtime rate, it is important that they receive a sustainable hourly rate. Even live-in nannies have bills they need to pay, and income they need to survive.
Additionally, a live-in nanny is not on duty 24/7. She should be paid for every hour she works, and she should have a set schedule.
I always try to be flexible with the families I work for, and I won't complain if your schedule changes from day to day. I've found that a big monthly calendar on the wall tends to be a good way to keep track of scheduling. Communication is key when it comes to scheduling and keeping everyone happy.
What are guaranteed hours?
Guaranteed hours can often be confused with salary, but they are not the same thing. Legally, a nanny cannot be paid a salary rate- she must be paid for every hour she works. However, it is common to offer your nanny guaranteed hours, and it's something many nannies (including myself) won't work without.
Guaranteed hours means that a family agrees to pay a certain number of hours each week, even if they don't need the nanny. So if you're advertising for 50 hours a week, the nanny should be paid for fifty hours every week, even if you decide to send her home early one day, or if you go on vacation and don't take her with you. Nannies should also be paid for every hour worked beyond 50, but they are guaranteed at least those 50 hours because they have set aside that time for you, and are professionals and require consistent income to survive.
For more information on the ins and outs of guaranteed hours and why they should be offered, see www.nannycounsel.com/blog/nanny-pay-guaranteed-hours-vs-salary
Guaranteed hours means that a family agrees to pay a certain number of hours each week, even if they don't need the nanny. So if you're advertising for 50 hours a week, the nanny should be paid for fifty hours every week, even if you decide to send her home early one day, or if you go on vacation and don't take her with you. Nannies should also be paid for every hour worked beyond 50, but they are guaranteed at least those 50 hours because they have set aside that time for you, and are professionals and require consistent income to survive.
For more information on the ins and outs of guaranteed hours and why they should be offered, see www.nannycounsel.com/blog/nanny-pay-guaranteed-hours-vs-salary
What should go in a nanny contract?
There are a lot of things a nanny contract can and should cover. For instance-
- Start date
- Worksite address
- Work schedule (total daily and weekly hours, circumstances if extra hours are needed)
- Pay rate (hourly rate, guaranteed hours, overtime rate, travel work, overnight hours, etc)
- Pay schedule (weekly? biweekly? check? direct deposit?)
- Taxes
- Specific duties (do you want household chores done? Be specific and keep in mind that caring for the children takes priority)
- Benefits (paid time off, vacation, holidays, sick days, health insurance contributions, gym membership- benefits are at your discretion)
- House rules
- Car use and insurance (if nanny will be using your car/driving children in her own car)
- Termination policy (reasons for immediate dismissal as well as how much notice either party should give in the event one wants to end the agreement)
- Social media policy/confidentiality clause
- Reviews and raises
What's the difference between a live-in nanny and an au pair?
I am a childcare professional, while an au pair is more often a student offering childcare in exchange for a home and a cultural experience. Plenty of people wouldn't feel comfortable trusting infants to young people without much experience. While it's likely more expensive to have a live-in nanny than an au pair, I believe the peace of mind you get from knowing that there's nothing your infant can do that will surprise me should be more than worth it.
