You'll thank yourself later for getting some guidance when hiring a nanny or creating a Nanny Share. A lawyer, accountant, and the pros at Nanny Lane can help you navigate your questions and any legal rights and responsibilities you should be aware of.
Here are some legal considerations you should be aware of when you hire a nanny or start a Nanny Share:
Both families must hire and pay the nanny separately in a Nanny Share. Your nanny is the employee for both families, and paying her separately (and legally) is required when each family files their taxes.
Employment payroll laws apply. As an employer, you must create a regular payment plan and pay for every hour worked. Plus, you must maintain detailed payroll records that include the dates and hours the nanny worked for a period of three years. Your nanny tax and payroll service can help you do this (may we suggest our own?).
Overtime must be paid for. A nanny is typically not a salaried employee. She is usually an hourly worker. So if a nanny works over 40 hours a week, the employer is required to pay time and a half pay for each hour over 40.
Your nanny is not an independent contractor. This means she cannot be taxed as one. An independent contractor is someone who creates his or her own hours and works his or her own schedule. Because your nanny works around your schedule, she is your employee.
Workers' Compensation laws apply. If your nanny gets hurt on the job, you could be responsible for her medical bills and paid time off to recover. Your nanny tax and payroll company should help you protect yourself.
You must provide a workplace free of physical, psychological, and/or sexual abuse. This should go without saying.
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