Hiring a nanny is one of the most important decisions a family can make. Therefore, it’s critical not to overlook anything during the hiring process. Our payroll and HR partner, GTM Payroll & HR, offers a look at some common things you want to be sure not to miss.
Hiring a nanny is an important decision. You are trusting this caregiver to look after your children and have someone in your home for 20, 40, or maybe even more hours a week. It is a choice you will want to get right. While we offer some valuable tips when hiring a nanny, here are some common areas that may get overlooked during the hiring process.
1. Knowing what you want in a nanny
This may seem obvious … you need someone to care for your children in your home while you work. But finding the right nanny for your family is more than that. What type of personality are you looking for? Do they have a similar child-rearing philosophy and approach to discipline? Do you want them to be active with your kids, taking them on walks and to the playground?
Your nanny job description will spell out the experience, background, skills, and education level you seek in a nanny. That will help you narrow the candidate pool for your position. Also, make sure you are bringing someone into your home who you are comfortable with and who will meet your and your children’s needs.
2. Giving yourself enough time to make an intelligent hire
Even with a good job description and a firm idea of what you want in a nanny, it could take time to find the right fit. You must sort through applicants, conduct interviews, set up a trial day or time to meet with your family for top candidates, run background checks, and check references. This process should be measured in weeks and not days. Give yourself one to three months to find a nanny.
Using an online job site will lengthen the process as you will have more candidates – many likely unqualified – who will apply for your position. Using a nanny placement agency will save you time and hassles. Based on your requirements, they can have a group of quality candidates for you to review.
In fact, our survey of household employers about the hiring process found that families who hire a nanny through an agency rather than a website will get a better-quality nanny, keep them longer, and spend less time finding the right match.
3. Determining the total cost of employing a nanny
You may have budgeted for your nanny’s wages, but other costs are involved in employing a nanny. You will need to consider:
- Employer taxes – can be reduced with a Dependent Care FSA and/or the Child and Dependent Care Tax Credit.
- Workers’ compensation – coverage may be required in your state and will help cover medical costs and lost wages if your nanny gets hurt on the job.
- Overtime pay – for those weeks when you may need your caregiver for more than 40 hours.
- Benefits – health benefits and other perks help attract the top candidates.
- Back-up childcare – when your nanny takes time off.
- Holiday/end-of-year bonus – typically one to two weeks’ wages. For new nannies, one day’s pay for each month they have worked.
- Annual raises – just like in the traditional workforce, nannies should have the opportunity to have annual performance reviews and receive a raise if warranted.
- Family changes – if you have another child or add a family pet, you should boost your nanny’s pay.
- Job responsibilities – if you need to add duties above and beyond what was agreed to in the initial work agreement – perhaps housekeeping or preparing family meals – your nanny should get a raise.
4. Having backup childcare
What will you do for childcare when your nanny has time off or calls in sick? Will a parent take time off work? Do you have family, friends, or neighbors who can step in and help? Agencies can often provide backup caregivers on short notice. Have a plan of action so you are not scrambling for childcare at the last minute.
5. Checking references and conducting background checks
Even if your nanny was referred to you by a friend or colleague, it is a good idea to call references and run a background check.
Suggested background checks include driving records, social security, criminal convictions, drug testing, and sex offender registries. Make sure to follow any local or state laws regarding background checks of potential employees. You may be restricted in what you can check, such as an applicant’s credit history.
If you are working with an agency, they may be able to conduct a background check for you.
6. Figuring out payroll, taxes, and insurance
Hiring a nanny means you are now an employer with payroll and tax responsibilities. You can download our guide to household payroll at the bottom of this post. It will walk you through everything you need to do as an employer. You can also call us at (800) 929-9213 for a free consultation, and we will be happy to discuss our services and how we can handle your nanny payroll and taxes.
Payroll and taxes may seem like a hassle, and paying “off the books” is easier. However, there are significant risks to noncompliance with tax laws, and it is easy to get caught. Plus, your nanny gets important protections and benefits when paid legally.
Also, your nanny is an employee, not an independent contractor.
In many states, household employers are required to carry workers’ compensation. Workers’ compensation will help cover lost wages and medical expenses if your nanny gets hurt on the job. Even if a policy is not mandatory, getting voluntary coverage could be a good idea. Failing to obtain the required workers’ compensation insurance is an incredibly costly mistake, with fines that can quickly reach tens of thousands of dollars.
The GTM Insurance Agency has licensed insurance brokers on staff who can obtain a policy for you and help manage any audits.
7. Writing a nanny contract
A nanny contract is a detailed outline of the work engagement. It establishes a clear understanding between you, as the employer, and your nanny regarding their duties and responsibilities, and helps reduce the likelihood of issues and misunderstandings during their employment. A nanny contract will also set the tone of your working relationship with open and clear communication.
Download a free nanny contract template.
Hire Your Nanny from A New England Nanny
When you’re ready to hire a nanny, let our agency help! Our professional, experienced, thoroughly screened caregivers have been providing peace of mind to Capital Region families for more than 34 years.
If you need full- or part-time care, or just occasional babysitting, after-school care, housekeeping, or anything else in your home, let us know how we can help.
Request a service or give us a call at (518) 348-0400 and we’ll provide a free consultation to get you the care you need.