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In a nanny share, both families are considered employers by the IRS. That means both families must obtain federal employer identification numbers (EIN) and register with the state. Each family pays Social Security and Medicare (FICA) taxes as well as federal and state unemployment taxes.
A nanny is a full-time babysitter, someone whose job is taking care of a family's children. If you're a lucky kid, your nanny will be like Mary Poppins or Maria from "A Sound of Music." Being a nanny goes beyond hourly childcare a nanny is usually the person who spends the most time with a baby or child.
Depending on the situation, a nanny may be hired as an employee or as a 1099 independent contractor on a part or full-time basis. A nanny is usually paid by the hour including reimbursement for any travel costs. A nanny contract is commonly an at-will arrangement that either parent or nanny may cancel at any time.
Print out two copies of the contract, sign both and ask your nanny to do the same then you each keep a copy. Create a payroll account to make handling payment and nanny taxes easier. Make sure your new nanny has everything she needs for her first day.
While a day care setup may provide consistency and social interaction, a nanny provides something key to maternal mental health that day care can'thelp around the house. A skilled nanny can do housework, run errands, make meals and help a mother to feel cared for. But a family's budget is often the deciding factor.
How should you structure pay? In a nanny share, each parent typically pays two-thirds to three-fourths of the nanny's standard rate. I know a lot of families think since they're sharing a nanny, they only have to pay 50 percent of it, but that's not industry normal, Hall says.
How to Get Started:Step 1: Preparation. Can you afford the cost?Step 2: Find a Family. Find a family with similar parenting styles local parenting groups often will be a good place to start looking.Step 3: Write Up and Establish Guidelines.Step 4: Finances and Benefits.Step 5: Find a Nanny.Step 6: Nurture!
When thinking about starting a nanny share, ask yourself these questions:Do you share a similar outlook on parenting?Do you genuinely like the other family?Do your children get along?Are both family's children about the same age?Do all of the parents get along with each other?
1 Parents or Legal Guardians.2 Child Care Provider.3 Children.4 Locations and Schedule of Care.5 Time Frame.6 Responsibilities.7 Emergencies.8 Communication.More items...
Drawbacks include:There are no regulations, so parents have to screen nannies before hiring.No back-up if your nanny is sick.Hiring a nanny tends to be more expensive.Having a nanny is like managing an employee.You may disagree on things like your child's nutrition, activities, sleep schedules, discipline, etc.