Nanny Employment Toolkit
Professional Nanny Employment Documents
Create legally compliant contracts, offer letters, handbooks, and more. No lawyer required.
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Employment Contract Generator
Employer Information
Employee Information
Children Information
Work Schedule
Click hours to mark as working, click again for on-call, click once more to clear. Drag to select multiple hours at once.
Compensation
Benefits
Transportation & Vehicle Use
Confidentiality & Privacy
Monitoring & Cameras
Travel & Overnight Care
Housekeeping & Additional Duties
Check all duties expected beyond direct childcare. Be specific to avoid misunderstandings.
Probation & Performance Reviews
Sick Child & Backup Care
House Rules & Safety
Employer Obligations & Insurance
Additional Benefits (Optional)
These are common additional benefits offered by competitive employers.
Termination & Notice Terms
Dispute Resolution
Emergency & Closure Policy
Special Provisions
Contract Preview
NANNY EMPLOYMENT AGREEMENT
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Family Handbook Generator
Emergency Contacts
Children Details
Daily Schedules
Parenting Philosophy & Approach
Help your nanny understand your overall approach to childcare and development.
Discipline & Behavior
Screen Time & Media
House Rules
Meals & Nutrition
Sleep & Naps
Outdoor Play & Activities
Potty Training (If Applicable)
Social Development & Behavior
Safety & Emergency
Household Tasks
Communication
Handbook Preview
FAMILY HANDBOOK
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Offer Letter Generator
This offer letter pulls data from your Employment Contract. Fill out the contract first, then customize additional details here.
Offer Details
Offer Contingencies
This offer is contingent upon successful completion of:
Additional Terms (Optional)
- Nanny name and address from contract
- Position details and schedule from contract
- Compensation and benefits from contract
- Signature acceptance section
Offer Letter Preview
OFFER LETTER
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Onboarding Checklist
👋 New to Hiring a Nanny?
Don't worry! This checklist guides you through every step. As a household employer, you have specific legal responsibilities—but they're manageable. We'll explain each one in plain English, just like TurboTax does for taxes.
🏛️ Employer Setup (First Time Only)
Required by Law ~2 hoursYou're Becoming an Employer!
When you hire a nanny, you become what the IRS calls a "household employer." This means you have specific tax and legal responsibilities—similar to any business that hires employees. The good news? These are one-time setup tasks that take about 2 hours total.
Nannies are W-2 employees, not independent contractors. Treating them as contractors (paying cash, no taxes) is illegal and can result in IRS penalties, back taxes, and legal liability. It also means your nanny won't qualify for Social Security, unemployment benefits, or workers' comp if injured.
An EIN (Employer Identification Number) is like a Social Security number for your household as an employer. You'll use it on all tax forms, W-2s, and when registering with your state.
How to Get Your EIN:
- Go to IRS.gov EIN Application
- Select "View Additional Types, Including Tax-Exempt and Governmental Organizations"
- Choose "Household Employer"
- Complete the online form—you'll receive your EIN immediately
Pro tip: Save your EIN confirmation letter. You'll need this number for years to come.
FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Here's the breakdown:
Example: If you pay your nanny $40,000/year, FICA adds $6,120 total ($3,060 from you + $3,060 withheld from nanny).
FUTA (Federal Unemployment Tax Act) funds the federal unemployment system. Only you pay this—not your employee.
- Rate: 6% on first $7,000 of wages
- Credit: Up to 5.4% credit for paying state unemployment tax
- Effective rate: Usually just 0.6% ($42/year max per employee)
- Trigger: Required if you pay $1,000+ in any calendar quarter
Bottom line: FUTA is typically less than $50/year per employee. Reported on Schedule H with your tax return.
Schedule H is a one-page form attached to your personal tax return (Form 1040). It's where you report and pay all household employment taxes.
What Schedule H Covers:
- Social Security and Medicare taxes (FICA) you owe
- Federal unemployment tax (FUTA) you owe
- Federal income tax withheld from your employee (if any)
Key Dates:
- Due: April 15 (with your tax return)
- Extension: If you extend your taxes, Schedule H extends too
- Estimated payments: May need quarterly payments if owing $1,000+
Many families don't realize they owe "nanny taxes" until they do their annual taxes. By then, you may owe significant taxes plus penalties. Set up withholding from the start to avoid a surprise bill.
State unemployment insurance (SUTA) provides benefits to your nanny if you let them go. Requirements vary by state:
- Most states: Required if paying $1,000+/quarter
- Rate: Typically 1-5% on first $7,000-$50,000 (varies by state)
- Registration: Usually with your state's Department of Labor or Employment Security
- Filing: Quarterly reports required in most states
Check the state you selected above for your specific rate and requirements.
Federal income tax: Withholding is optional for household employers. You and your nanny can agree not to withhold, and they'll pay when filing taxes.
State income tax: Rules vary by state. Some require withholding, others make it optional.
States with no income tax: Alaska, Florida, Nevada, New Hampshire (limited), South Dakota, Tennessee (limited), Texas, Washington, Wyoming
Tip: Even if optional, many nannies prefer withholding so they don't owe a large amount at tax time.
Workers' compensation insurance covers medical expenses and lost wages if your nanny is injured on the job.
States that REQUIRE workers' comp for household employees:
California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Oklahoma, South Carolina, South Dakota, Utah, Washington
Cost:
- Typically $200-$600/year for household employees
- Often available as a rider on your homeowner's insurance
- Or purchase standalone policy from your state's insurance marketplace
Even if not required, workers' comp protects you from personal liability if your nanny is injured. Without it, you could be sued directly.
What payroll services do:
- Calculate taxes each pay period
- Handle federal and state tax deposits
- File quarterly state unemployment returns
- Prepare and file W-2s and W-3s
- Prepare Schedule H at year-end
- Handle state new hire reporting
Recommendation: For first-time household employers, a payroll service is worth the cost to avoid mistakes and penalties. Once you understand the process, you can consider DIY.
Once you complete these setup tasks, you won't need to do them again. The ongoing work (payroll, quarterly filings) is much simpler, especially if you use a payroll service.
🔍 Pre-Hire
Before Hiring ~1-4 weeksFinding the Right Fit
Your nanny will become an integral part of your family. Taking time to thoroughly vet candidates now prevents costly turnover later. Most families interview 5-10 candidates before making a decision.
Include in your posting:
- Schedule: Specific days/hours (e.g., "M-F, 8am-5pm")
- Children: Ages, any special needs
- Location: Neighborhood (not exact address)
- Pay range: Being transparent attracts better candidates
- Requirements: Driving, CPR, experience level
- Benefits: PTO, guaranteed hours, health stipend
- Start date: ASAP vs. specific date
Red flags in responses:
- Generic responses that don't mention your children
- Can't provide references
- Wants to be paid "off the books"
- Inconsistent work history
Structure your interview:
- Tour (5 min): Show them the house, children's rooms
- Discussion (30 min): Review experience, scenarios, your expectations
- Child interaction (15-30 min): Watch how they engage with your children
- Q&A (10 min): Let them ask questions about the role
Key questions to ask:
- "Tell me about a challenging situation with a child and how you handled it"
- "What does a typical day look like for you with children this age?"
- "How do you handle discipline?"
- "Why are you leaving your current position?"
Tip: Use the Interview Question Bank above for more scenario-based questions.
Essential questions for references:
- "Can you confirm their dates of employment?"
- "What were their main responsibilities?"
- "How did they handle challenging situations?"
- "Were they reliable and punctual?"
- "Why did they leave your family?"
- "Would you hire them again?" (The most important question)
Red flags:
- Reference doesn't remember them well
- Hesitation when answering
- Can only provide personal (non-employer) references
- Dates don't match what candidate provided
A background check typically costs $30-75 and screens for criminal history, sex offender registry, and sometimes driving records. Services like Checkr, GoodHire, or Sterling offer quick turnaround. Many families also request a DMV check if driving is involved.
Many families include a 30-90 day trial period in their offer. This gives both parties a chance to ensure it's a good fit. During the trial, either party can end the arrangement with shorter notice (often 1 week instead of 2). Be sure to include this in your contract.
📅 First Day
Time-Sensitive ~2-3 hoursWelcome Your New Nanny!
Day one sets the tone for your working relationship. Block out 2-3 hours for paperwork and orientation—don't rush this. Your nanny will appreciate the thorough onboarding, and it protects you legally.
Federal law requires completing Form I-9 within 3 business days of the start date. Your nanny must present original documents (not copies) proving identity and work authorization. Don't let them start without completing this form—it's one of the most common compliance violations.
What documents are acceptable?
Your nanny needs documents from List A OR one from List B + one from List C:
- List A (proves both identity and work authorization): US Passport, Permanent Resident Card (Green Card), Employment Authorization Document
- List B (proves identity): Driver's license, State ID, School ID with photo
- List C (proves work authorization): Social Security card (unrestricted), Birth certificate
Common combination:
Driver's License (List B) + Social Security Card (List C) = Valid I-9
Important rules:
- Documents must be originals—no photocopies
- You must examine them in person
- Keep the I-9 for 3 years after hire OR 1 year after termination (whichever is later)
- Download Form I-9 from USCIS.gov
Good news: Federal income tax withholding is optional for household employers. You and your nanny can agree not to withhold, and they'll pay estimated taxes or at year-end.
However: Many nannies prefer withholding to avoid a large tax bill in April. If you agree to withhold:
- Have your nanny complete Form W-4
- Use IRS tax tables or your payroll service to calculate withholding
- Include the withheld amount on Schedule H
Tip: Even if you don't withhold federal income tax, you MUST withhold Social Security and Medicare (FICA) taxes if paying $2,700+ per year.
Don't just hand over the handbook—review key sections together. This prevents misunderstandings and shows you value clear communication. Focus on: emergency procedures, discipline philosophy, screen time rules, and meal/allergy guidelines.
📋 First Week
Legal Deadlines Within 7 daysCritical Legal Deadlines
This week involves time-sensitive legal requirements. The most important? Reporting your new hire to the state. Most states require this within 20 days—some within 10 days. Don't put this off!
Every state requires employers to report new hires. This isn't optional—it's federal law (Personal Responsibility and Work Opportunity Reconciliation Act). Failure to report can result in fines of $25-$500 per employee. Most states have online portals making it easy.
What you'll need:
- Your EIN (employer identification number)
- Your business name and address (your home address)
- Employee's name, address, Social Security number
- Employee's date of hire and date of birth
Where to report:
Search "[Your State] new hire reporting" to find your state's portal. Most states have free online submission—it takes about 5 minutes.
Deadline by state (examples):
- Most states: Within 20 days of hire
- California, Arizona, Colorado: Within 20 days
- Some states: Within 10 days (check yours)
Why this matters: New hire reporting helps enforce child support orders and reduces benefit fraud. It's part of your legal obligation as an employer.
If your nanny will drive your car with your children, call your auto insurance. Most policies cover "permissive use," but you may want to add them as an occasional driver to be safe. If they use their own car for childcare activities, they should have their own adequate coverage.
🌟 First Month
Best Practice Within 30 daysBuilding a Strong Relationship
The first month is a crucial adjustment period. Regular check-ins help catch small issues before they become big problems. A 30-day review isn't about criticism—it's about ensuring everyone is on the same page.
Studies show that nanny turnover is most common in the first 90 days. A structured 30-day check-in gives both parties a chance to address concerns early. Keep it positive—focus on what's working well and what could work better.
Questions to ask your nanny:
- "How are you feeling about the role so far?"
- "Is the schedule working for you?"
- "Do you have everything you need to do your job well?"
- "Are there any concerns you'd like to discuss?"
- "How are things going with [each child's name]?"
Topics to cover:
- What's working well (be specific with praise)
- Any adjustments needed to routines or expectations
- Upcoming schedule changes or holidays
- If using trial period: discuss if continuing beyond trial
Tip: Take notes and follow up on action items. This shows you value the relationship.
Check these items:
- Gross pay: Hours × hourly rate (plus overtime if applicable)
- Social Security withholding: 6.2% of gross
- Medicare withholding: 1.45% of gross
- Federal income tax: If agreed to withhold (based on W-4)
- State income tax: If applicable
- Net pay: Gross minus all withholdings
Example paycheck (weekly, $25/hr, 40 hrs):
If you've reached this point, you've successfully navigated the critical onboarding period. The hardest part is behind you! What remains are routine maintenance tasks that become second nature over time.
🔄 Ongoing Tasks
Recurring Throughout employmentYour Annual Calendar
These are your recurring responsibilities as a household employer. Most are quarterly or annual tasks. Set calendar reminders now to avoid missing deadlines—penalties can be steep!
State unemployment (SUTA) returns are due every quarter. Miss one and you'll face penalties plus potential loss of FUTA credit. If you use a payroll service, they handle this for you automatically.
+ Q1 + Q2 + Q3 + Q4
What you report:
- Total wages paid during the quarter
- Taxable wages (usually up to state's wage base)
- Tax due (wages × your SUTA rate)
Example (California, 3.4% rate, $7,000 wage base):
- Q1 wages paid: $12,000
- Taxable wages: $7,000 (reached wage base)
- Tax due: $7,000 × 3.4% = $238
- Remaining quarters: $0 (wage base reached)
Tip: Most SUTA tax is paid in Q1-Q2 because you hit the wage base early. Later quarters are often just reporting with $0 due.
+ Q1 + Q2 + Q3 + Q4
You may need to pay quarterly estimated taxes if you expect to owe $1,000 or more in household employment taxes for the year.
Two options:
- Pay quarterly estimates: Use Form 1040-ES to pay ¼ of your estimated annual tax each quarter
- Increase your own withholding: If you're employed, increase your W-4 withholding to cover the extra taxes
Safe harbor: If you paid at least 100% of last year's total tax (or 110% if your income was over $150,000), you won't owe penalties even if you owe more this year.
You MUST provide your nanny with Form W-2 by January 31st. Late W-2s can result in penalties of $50-$290 per form. You also need to file copies with the Social Security Administration. If you use a payroll service, they handle this automatically.
What W-2 shows:
- Total wages paid during the year
- Federal income tax withheld (if any)
- Social Security wages and tax withheld
- Medicare wages and tax withheld
- State/local wages and taxes (if applicable)
Copies you need:
- Copy A: To Social Security Administration
- Copy B: To employee for their federal return
- Copy C: To employee for their records
- Copy 2: To employee for state/local return
- Copy D: For your records
How to file: Use IRS Form W-2 (free from IRS.gov) or your payroll service. File Copy A electronically at SSA.gov (free) or mail paper forms.
Discussion points:
- What went well this year?
- Areas for growth or change
- Schedule adjustments needed
- Compensation review (typical annual increase: 3-5%)
- Benefits changes
- Goals for the coming year
Tip: A cost-of-living raise shows you value your nanny. Even a 3% increase helps retain good caregivers and is often less expensive than finding and training a replacement.
Many states increase minimum wage annually (often January 1). Some cities have their own higher rates.
To stay compliant:
- Check your state's minimum wage each year
- Check your city/county if you live in a major metro area
- If minimum wage rises above your nanny's rate, you MUST increase their pay
Resources: The state you selected in the Contract tab shows current minimum wage. Also check the Department of Labor website for updates.
Understanding these responsibilities puts you ahead of most household employers. Many families pay "under the table" and face serious consequences later—back taxes, penalties, and denied unemployment claims. By doing it right, you're protecting yourself and your nanny.
Termination Documents
Generate professional termination letters and ensure you complete all legal requirements when ending employment.
Termination Details
Final Compensation
Items to Return
Check all items that need to be returned:
Termination Letter Preview
TERMINATION LETTER
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Payroll Calculator
Estimate employee take-home pay and your total employer costs