Why Nanny Work Agreements Are So Important!

Nanny work agreements play a vital role in establishing a successful nanny-employer relationship. These documents provide a clear framework for the employment arrangement and help prevent potentially damaging misunderstandings. 

Clarity in Expectations: A well-structured nanny work agreement is instrumental in outlining the expectations of both parties. Important considerations include:

• Job duties: Does the nanny need to assist with homework, perform household chores, or prepare meals?
• Transportation: Will the nanny be responsible for driving the children to school or appointments? Whose car will be used? 

By clearly defining these expectations in the agreement, you ensure everyone is on the same page from the very beginning.

Compensation and Benefits: Your nanny's compensation package should be clearly outlined in the work agreement. This section should include:

• Gross pay based on an hourly wage. Don’t forget to include an overtime wage, if applicable. The federal rate for an overtime premium is 1.5 x regular rate of pay.
• Tax responsibilities: Address both employer and employee taxes. Employer taxes include half of Social Security and Medicare (7.65% total), along with  unemployment taxes. Employers are also responsible for remitting the employee's half of Social Security and Medicare (7.65%), but this amount may be withheld from employee pay (and usually is).  It is also best practice to withhold and remit the employee’s income taxes, otherwise the employee will need to make their own income tax payments.
• Pay schedule: Specify whether payments are made weekly or bi-weekly, in arrears or current, and on what day of the week. The most common is weekly payroll in arrears, paid on Friday.
• Benefits: Outline paid time off, holidays, fringe benefits, and health insurance benefit options you offer. Make sure you are abiding by legal requirements for your area.

By including these details, you create a transparent financial structure that benefits both you and your nanny.

Conflict Resolution: Conflicts can arise in any working relationship, and addressing how you will deal with these situations in the nanny work agreement can help head trouble off at the pass. Consider these key points:

• Procedure for bringing issues to light, and how they will be resolved.
• Notice period: Specify the duration of notice requested if either party decides to end the employment arrangement.

A well-thought-out termination clause safeguards the interests of both parties and paves the way for an amicable separation if one is needed.

Nanny work agreements are the keystone of a harmonious nanny-employer relationship. By creating a comprehensive agreement addressing expectations, compensation, benefits, and conflict resolution, you establish a professional framework from the outset. If you're unsure how to create a nanny work agreement or find it overwhelming, our team of experienced household payroll specialists can set you on the right path. We even have a template available for download here!