Are nanny shares legal? These are trying times, and for some, financial situations might be tight. You must continue working for your family to survive, but you need child-care that is flexible and affordable.
There are alternative options to the standard daycare programs. And nanny shares are growing in popularity. They are often used by families who want to share the costs of in-home child care or encourage relationships with other children.
A nanny share with a live-out nanny is where two families engage the services of a single nanny to care for their children. It is a good choice if your children are the same age, both families have similar parenting philosophies, and your work hours are compatible.
But are these nanny shares legal?
For the most part, they are, but there may be different state legislations that need to be observed. Here are some of the general legal considerations you should be aware of when you start a nanny share.
It’s not like hiring a babysitter for the night. You are putting a contract in place to ensure your children are looked after appropriately and safely. Therefore, it requires attention to the details.
Payment
Both families must hire and pay the nanny separately. Your nanny is the employee for both families, and paying her separately is required when each family files for their taxes.
Employment payroll laws apply. You are the employer, so you need to create a regular payment plan and pay for every hour worked. You need to maintain detailed payroll records that include the dates and hours the nanny worked for three years. You must ensure that all payroll deductions are recorded and comply with tax legislation. Don’t worry, there are some very reputable nanny tax and payroll services that can help you do all of this.
Your nanny, unless otherwise organized in a contract, is not an independent contractor. An independent contractor is someone who creates their own hours and schedule. Your nanny works around your schedule, so they are an employee.
Workers’ compensation laws apply to this agreement. If your nanny gets hurt at work, you could be responsible for her medical bills and paid sick leave to recover. Your nanny tax and payroll company will be able to ensure you have the proper protection to mitigate any complications.
Besides tax compliance, you have to also meet the bare minimum employment standards around minimum wage, employment hours, overtime, and time off, including leave, statutory holidays, and vacation time.
Although convenience and flexibility are expected benefits of having a nanny, understand you can’t come and go simply because a nanny is present. As informal as you feel the arrangement is, you must have a contract spelling out the details of the job, terms of sick leave, vacation entitlement, and notice requirements in the event of termination by either party.
The following should go without saying, but you must provide a workplace free of physical, psychological, and/or sexual abuse.
If you can find the right nanny and the right people to share the service with, a nanny share can be successful for everyone, especially the children. The experience will be more satisfying if you ensure compliance with your legal requirements and labor standards that govern this employer-employee relationship.
https://nanniesandkidsunited.com/nanny-taxes/
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