Nanny Shares
What Is a Nanny Share?
Nanny shares offer a flexible and cost-effective solution for families seeking high-quality child care. A nanny share is an arrangement where one nanny provides care for children from two or three families usually, splitting the childcare costs between them. With proper planning, a nanny share can provide personalized care, reduce childcare costs, and accommodate the schedules of different families.
- Flexibility: Tailor care to your family’s unique schedule, ensuring coverage for part-time or full-time needs.
- Cost Savings: Reduce childcare costs while providing your children with personalized attention.
- Limited Group Size: Unlike daycare centers, nanny shares involve fewer children, allowing for individualized home care.
The Importance of a Three-Way Work Agreement
A successful nanny share begins with a clear, three-way work agreement that outlines the terms and conditions of employment. This document ensures that all parties — families and the nanny — are aligned on expectations, schedules, and compensation. A well-structured agreement helps avoid misunderstandings and promotes an easy nanny share experience.
Considering a Nanny Share?
Share the Cost
Families split the hourly rate, making it more affordable than hiring an individual nanny for each household.
The shared expense also makes it a budget-friendly alternative to full-time daycare centers or individual nanny care.
Premium Pay
Nannies in a share arrangement are usually paid a premium due to the added responsibility of managing multiple children on a daily basis and working with different families.
This premium is still offset by the cost-sharing benefits for the families.
Care Arrangements
Care can be provided in a single family’s home or alternate between homes.
Families should agree on the arrangement and account for factors like transportation, workspace suitability, and insurance requirements.
Components of Successful Nanny Sharing
Determine the nanny’s total compensation, including hourly rate, overtime pay, and benefits, and decide how costs will be divided.
Agree on overtime rates and how overtime will be paid if only one family requests additional hours. By law, overtime is paid out at a rate of at least 1.5x regular rate of pay. Federally, this must be paid for any hours worked in excess of 40 hours per week, but some states have a daily overtime law. For more information, see employment laws by state.
Discuss payment adjustments if the nanny is caring for only one child due to a sick day or schedule differences.
Define what happens if one family opts out of the nanny share. A notice period of four weeks is a best practice.
Agree on whether care will occur in one or both homes, and verify insurance requirements, including workers’ compensation.
Coordinate vacation time and holiday observances to minimize disruptions. Align these with the nanny’s preferences whenever possible.
Clarify transportation expectations. If the nanny uses their own vehicle, ensure proper insurance coverage and mileage reimbursement.
Outline the nanny’s responsibilities, from transportation to more care-intensive tasks, like baby-led weaning, and developmental stage activities.
Discuss parenting styles to ensure compatibility and create a unified approach to childcare.
Set clear expectations for notice periods if the nanny plans to leave, ideally four weeks or more.
Our Pricing Plans
Essential Tax
$185/per quarter
- Effortless new employer setup
- Federal, state, & local tax withholding & filing
- Annual Schedule H & W-2 preparation and delivery
Complete Payroll + Tax
From $239/per quarter
- Effortless new employer setup
- Federal, state, & local tax withholding & filing
- Annual Schedule H & W-2 preparation and delivery
- Secure online portal with Digital VaultTM
- Hassle-free tax notice management
- Web-based timecard tracking included
- Payment processing of healthcare (QSEHRA and ICHRA) & other reimbursements
- Worker's compensation insurance referral
- Dedicated payroll specialist
Premier Payroll + Tax + HR
From $389/per quarter
- Effortless new employer setup
- Federal, state, & local tax withholding & filing
- Annual Schedule H & W-2 preparation and delivery
- Secure online portal with Digital VaultTM
- Hassle-free tax notice management
- Web-based timecard tracking included
- Payment processing of healthcare (QSEHRA and ICHRA) & other reimbursements
- Worker's compensation insurance referral
- Dedicated payroll specialist
- Weekly payroll at no extra charge
- Dedicated tax coordinator
- Unbiased workers' compensation insurance guidance
- QSEHRA health benefit plan consultation
- Live onboarding for you and your employees
- On-demand payroll reports
Starting a Nanny Share?
Simplify your journey with these resources:
- Understand Tax Obligations: Learn about household employer tax requirements and avoid common pitfalls.
- Payroll and Tax Compliance: HomeWork Solutions offers comprehensive payroll services, ensuring compliance with state and federal mandates.
- Sample Work Agreement: Use our template to outline wages, duties, and benefits, minimizing misunderstandings.
Take advantage of $120 off enrollment for total payroll and tax management when both families enroll in services. Mention this offer to your Sales Specialist.
Request a Consultation
Frequently Asked Questions
Using a nanny payroll service ensures that you comply with all federal and state tax laws, avoid penalties, and provide your nanny with the benefits and protections they deserve. It simplifies the process of managing payroll and taxes, saving you time and reducing stress. While it’s possible to handle nanny payroll and taxes on your own, it can be complex and time-consuming.
HomeWork Solutions’ nanny payroll software automates payroll calculations, tax withholdings, and payments. It includes features like time tracking, secure online portals, and digital vaults to simplify the payroll process and ensure compliance with all tax regulations.
The nanny tax includes Social Security, Medicare, federal unemployment tax (FUTA), and state unemployment tax (SUTA) that household employers must pay for their nannies. These taxes ensure that nannies receive benefits like Social Security and unemployment compensation.
HomeWork Solutions ensures compliance by automating tax calculations and withholdings, filing all necessary tax forms, and providing ongoing support and guidance to ensure that all legal and tax obligations are met accurately and timely.
HomeWork Solutions manages new hire reporting by filing all necessary documents with the state and federal government to ensure compliance with employment laws. This service is included in all our payroll plans.
Yes, HomeWork Solutions offers direct deposit as part of our payroll services, making it easy for you to pay your nanny securely and on time.
There are exemptions, such as if the nanny is your spouse, parent, or child under age 21, or if the employee is under 18 and whose primary occupation is a student.
By paying federal and state unemployment taxes (FUTA and SUTA), you ensure that your nanny is eligible for unemployment benefits if they lose their job through no fault of their own. HomeWork Solutions handles these tax payments as part of our payroll services.
Families share the nanny’s hourly rate, making it more affordable than hiring a nanny individually while still providing personalized care.
Start by partnering with another family who shares your childcare needs. Together, define your expectations, interview potential candidates, and conduct thorough background checks to find your ideal nanny. Clear communication and a detailed work agreement are essential to ensure a smooth hiring process.
Our Premier Household plan includes QSEHRA health benefit consultation, which provides guidance on offering health insurance reimbursements for your nanny. We help you navigate the process and ensure compliance with health benefit regulations.
Schedule H is a tax form used by household employers to report household employment taxes. HomeWork Solutions prepares Schedule H as part of our nanny payroll services, ensuring compliance and accuracy.
Yes! HomeWork Solutions can manage payroll for any household employee, including housekeepers, caregivers, and other domestic workers. Our services are designed to simplify payroll and tax compliance for all types of household employment.