The biggest benefit of a nanny share is sharing the cost of a nanny. There are other great perks, like socialization and getting to know another family, but having personalized, flexible childcare at such a reduced rate, is why so many families are leaning towards this arrangement.
First, the nanny’s hourly rate increases with a nanny share because they’re now dealing with two families and more than one child, and it’s best to create a mutually beneficial agreement for all parties.
The basic formula for calculating a nanny share is to take the nanny’s typical hourly rate, and have both families pay 2/3rds.
Any household employee needs to be paid legally, so taxes can be applied and she they be covered by insurance and unemployment if anything were to happen. This can get complicated and you will most likely want to work through a nanny payroll service, preferably one who is used to nanny shares.
Here are some instances you’ll also want to consider when sharing the cost of a nanny. Make sure to discuss these with the family you’re partnering with, and put it in a nanny share contract for both of you to sign:
What happens if one family needs the nanny to work extra hours?
Typically, the family who is requesting extra hours should pay the full hourly rate, or a rate that is previously decided on.
Say the host family (the family whose house the nanny works in) comes home early, but the non-host typically works late. You might decide that the nanny drives the child back to their home, and stays there with them until the parents return.
What happens when one family has a playdate or a new baby?
There should be a financial benefit to any addition to a nanny’s workload. If one family in your nanny share is expecting a new baby, discuss it with both the nanny share family and the nanny. It’s important to make sure you’re all comfortable with the nanny’s diverted attention.
As for the hourly rate, most families pay a nanny an extra $1-3/hour for an additional child. In this case, one family’s cost would stay the same and the other’s would increase.
What are some other costs that arise with a nanny share?
Some of the other shared costs in a nanny share will be food (breakfast, lunch, dinner), gear (double stroller, second high chair, car seats), and any other supplies (toys, diapers, and wipes). Families may decide to supply their own diapers, but alternate weeks for buying food.
The families will also want to talk to their insurance provider or nanny tax consultant about any insurance coverage they should get to host a nanny and other babies at their home.
How does overtime work in a nanny share?
If both families are asking the nanny to work over 40 hours a week, they should share the overtime cost (time and a half) the same way they split the hourly rate. But if only one family is asking for overtime hours, that one family should be in charge of the time and a half charge.