Nanny hiring (legal obligations)

Hiring a nanny provides personalized, in-home childcare tailored to your family's specific needs. The process involves defining your requirements, sourcing candidates (agencies, online platforms, referrals), conducting thorough interviews, running comprehensive background checks, checking references, establishing a trial period, and creating a formal employment contract.

10 steps across 1 sections

1. Steps Process

  • Define your needs — Hours needed (full-time, part-time, live-in, live-out), number and ages of children, duties beyond childcare (cooking, cleaning, driving), schedule flexibility, and start date
  • Set your budget — Research local nanny rates (typically $15-30+/hour depending on location and experience); factor in employer taxes (FICA, FUTA, state unemployment), workers' comp insurance, and a...
  • Source candidates — Use nanny agencies (provide pre-screened candidates for a fee), online platforms (Care.com, Sittercity, Nanny Lane), community boards, parent networks, and local college early c...
  • Screen resumes and conduct phone interviews — Filter for experience, certifications (CPR/First Aid), references, and schedule compatibility before investing time in in-person meetings
  • Conduct in-person interviews — Meet candidates at your home; include your children to observe interactions; ask about childcare philosophy, discipline approach, emergency handling, and past experience
  • Check references thoroughly — Contact at least 3 former employers; ask about reliability, trustworthiness, how they handled conflicts, and whether they would rehire
  • Run a comprehensive background check — With the candidate's written consent, conduct criminal background check (state and national), sex offender registry check, driving record (if driving children...
  • Conduct a paid trial period — 1-4 weeks of working together to evaluate compatibility, observe interactions with your children, and assess reliability; outline terms in writing
  • Create a nanny contract/work agreement — Include schedule, compensation, benefits (PTO, sick days, holidays), duties, house rules, termination terms, confidentiality, and review schedule
  • Set up payroll and tax compliance — Register as a household employer, obtain an EIN, set up payroll tax withholding (Social Security, Medicare, federal/state income tax), and file Schedule H with y...

Common Mistakes

  • Paying under the table
  • Skipping the background check
  • Not checking references
  • Vague or no contract
  • Treating a full-time nanny as an independent contractor

Pro Tips

  • Use a nanny payroll service
  • Install nanny cameras with disclosure
  • Include a guaranteed hours clause
  • Offer a benefits package
  • Set up regular performance reviews

Sources

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