Understanding Your Rights as a Nanny Employer

Apr 14

As a busy family hiring a nanny, it might be hard to wrap your head around the legalities that arise when employing someone in your home. The same goes if you are a nanny and unsure of what rights you have.

It is in the best interest of both you and your nanny to have a partnership based on professionalism and following the law during the span of employment. In this post, we will help you understand your rights as a nanny employer.

Your Rights as the Family - Legal Rights

A common misconception is that if you hire a nanny on your own, the nanny should be given a 1099 as an independent contractor. In actuality, they should be considered as a household employee according to IRS Publication 926 if you pay your nanny more than $2,600 in a calendar year. As their employer, you must give your nanny a W-2 to file their taxes and you as their employer must properly file and pay federal and state taxes as well as Social Security and Medicare.

As a household employee, your nanny is also entitled to overtime pay whether or not you consider them a full-time or part-time employee. Overtime pay means that they are paid time-and-a-half for working over 40 hours in a 7 day workweek.

You also need to be aware that household employment taxes should be paid throughout the year. 1040-ES estimated payments should be sent to the IRS four times per year and in general, state tax filings should be made quarterly (though check with your specific state to be sure).

Paying your nanny legally also comes with the comfort of knowing you won’t have to worry about being audited by the IRS for tax fraud if you were to get caught, along with a slew of other penalties, fines, and back taxes. You can also take advantage of tax breaks when you follow the law, which include use of a Dependent Care FSA for children under 13 years old and a Child or Dependent Care Tax Credit (IRS Form 2441).

We understand that for many families who wish to hire a nanny, they feel overwhelmed at the thought of trying to avoid legal pitfalls and just want to get a quality nanny candidate in their door as soon as they can. This is why many families choose to use a nanny agency that they trust to do the heavy lifting for them.

For all of the families that work with us at Preferred ChildCare, we suggest GTM Payroll or Homework Solutions, industry experts in nanny payroll, withholding, and tax law, for the latest information. We also take care of labor laws, salary, and benefits as your nanny’s official employer.

Whether you decide to work with a nanny agency or not, both the family and nanny should work off of a contract or a services agreement and be prepared to treat one another professionally and legally. This agreement is considered legally binding and is an important framework to form a strong understanding of responsibilities and expectations during your work together so that there is less chance for problems to occur.

It also protects you as an employer because it shows that the nanny is meeting your expectations and taking their position seriously.

Right to a Safe Nanny

Beyond legal considerations, as a family, you should expect that your nanny is a safe person for your child or children to be around.

A thorough background check on your nanny candidate is highly suggested to ensure that you are hiring someone you feel comfortable with. This could include a criminal background check, sexual misconduct check, and driving record history. At Preferred ChildCare, we use a 12-Tier screening process with our nanny candidates.

Your nanny should also follow any guidelines you put in place about who is allowed around your children and in general, the nanny should not bring outside guests or significant others around when she is caring for the children unless it has been discussed and cleared with you first.

Furthermore, your nanny should also respect the privacy of your family. This includes not posting photos on social media with your children in them unless they have your permission.

Right to a Professional Nanny

You also have the right to work with a nanny who adheres to professional boundaries. The nanny you work with should treat their work as a job, and behave in a manner that reflects the respect that they have for you and your family.

The nanny should arrive on time to work, dress appropriately, and treat your home, belongings, and pets with respect.

To help form a successful relationship with your nanny, we suggest that you use an employee or nanny handbook to communicate rules, practices, and policies around working in your household and with your children.

Some topics you might want to cover in your handbook include:

Schedules and routines
Childcare responsibilities
Health information on the children
Discipline techniques or approaches
Transportation arrangements
Communication preferences

You have the right to expect the nanny to follow the guidelines you have laid out, but you should also communicate with your nanny if there are occasional amendments that need to be made. Clear and consistent communication between you and your nanny will go a long way in preventing misunderstandings between your expectations and your nanny’s expectations and make sure you are both on the same page.

Let your nanny know how often to expect feedback and the criteria you will use for giving evaluations or constructive feedback so that they can improve in areas that may need adjustments. In turn, you should expect updates from your nanny on the children according to how you want this feedback. Remember, you are operating as a team with a common goal of taking care of your children the best that you can.

A Successful Partnership

A successful long-term partnership between a family and nanny can be achieved if both parties are open with their communication with one another, able to receive constructive feedback and adjust and have each other and the children’s best interests at heart.

Protecting your rights through a contract or agreement before you begin working together is the best way to make sure you are aware of and have managed your expectations on both sides.

Preferred ChildCare can help you find and keep your ideal nanny. Contact us today to learn more!

For more tips on working with nannies as a parent, follow the Preferred ChildCare blog!