Many families are looking for ways to cut costs these days. For those that use nannies for their childcare, there is a trend that is becoming more and more popular: nanny sharing. Families can hire a nanny to watch their respective children simultaneously, or a nanny can work part-time for two different families. In either case, the families share the cost and still enjoy the benefits a nanny provides. But it’s important to remember that even though a family may be sharing a nanny, the legal obligations for all involved families remain the same as if it were a one-family, one-nanny relationship. Here’s what you need to know about nanny sharing.
Household employers who participate in a nanny share must both be set up as employers and take care of the payroll, taxes, benefits, etc. It is illegal to have one family reimburse the other for their share of the nanny’s wages. When sharing a nanny, BOTH families must provide all the necessary payroll and tax paperwork. To illustrate this more clearly, it would be the same as a person working for both McDonald’s and Burger King; the employee will receive separate paychecks, separate W-2’s, separate insurance coverage, etc.
If you and another family have agreed to participate in a nanny share or thinking about one, download GTM Payroll’s Nanny Sharing Checklist to ensure you are fulfilling your legal obligations, as well as creating a successful business partnership that will benefit both you and the nanny.
If you have questions or require more information, please contact us at (518) 348-0400.