Household Employment Blog | Nanny Tax Information

Writing a Nanny Contract: Things You Need to Know

Written by HomeWork Solutions | 7/26/16 11:30 AM

As an employer, writing a nanny contract is a very important step in the employment process. Even though it’s not legally required to have a written contract with your nanny, it can be a very helpful thing to have in order to prevent misunderstandings and set ground rules from the very beginning. A contract can also protect both parties in problems arise, because you can refer to it in order to resolve certain issues.

What should your nanny contract cover?

Your contract should cover anything related to the nanny’s job. This is the opportunity to be as detailed as possible. It should cover all of the basics such as:

  1. Childcare duties & work hours:
    Clearly outlining what you expect your nanny to do is very crucial. Will you require the nanny to prepare meals, pick up or drop off children from school, bring them to medical appointments, or help with homework? These things should be indicated in the work agreement so it is clear right from the get go.
  2. Wages, overtime rates, and pay schedule:
    Be sure to define what your nanny will be paid, including gross hourly wages (amount paid before taxes are withdrawn), net wages (actual paycheck amount), employment taxes, and income taxes. In addition, write out what the overtime pay policy is and establish a pay day schedule. Do address how the nanny will be compensated when the family doesn't need her for a day or more - most nannies expect a guaranteed weekly pay rate every week, whether the family goes away or not.
  3. Benefits (including paid holidays, health insurance, and vacation):
    These are often negotiable, unless they are already established by state law. Definite paid time off and paid holidays carefully by indicating which ones are and are not included. 
  4. Termination Clause: 
    Including a termination clause into the nanny contract will help keep both parties protected in the event that termination needs to take place. If the nanny quits, be sure that there is a clause in there that she must provide notice, or if you wish to have the ability to terminate the nanny at any time, be sure to include an “at will” clause that will allow you to do that without negative repercussions. 

If you’ve never written a nanny contract and feel confused by what you should include and what should be left out, our team of experienced professionals is well-versed in the process and is happy to sit down and help you get it right. Contact us today for advice!

Resources

White Paper: How to write the nanny contract

Sample Nanny Work Agreement

Household Employment Laws by State