There is plenty of advice out there about how to hire a nanny. But what do you do after you hire one? What’s next?
Our friends at GTM share some essential steps you need to take to ensure a successful and professional relationship with your caregiver.
1. Write a nanny contract/work agreement
A nanny contract or work agreement lays the foundation for the working relationship between you and your employee. It details everything the position entails, including pay rate, schedule, benefits, job responsibilities, and more. Much of your nanny contract – like expectations and pay – can be pulled from your job description.
2. Register as a household employer with the IRS and state
You are now an employer when you hire someone to work in your home. Your nanny is your employee. They can not be considered an independent contractor.
First, obtain a federal employer identification number (FEIN) from the IRS. You can do this online; it only takes a few minutes to answer some basic questions. You’ll need an FEIN to pay your employee and when you file your taxes.
You will also need your FEIN when you register with your state. Check your state labor agency on how to get set up as an employer with the state. As part of this process, you will get a tax account for your unemployment insurance contributions. Lastly, you must file a new hire report with your state.
3. Set up nanny payroll and taxes
As mentioned, a nanny is your employee and not an independent contractor, so you must follow wage laws and withhold taxes from their pay. There are a few ways to go about this. You can try to do it yourself. At the end of this blog post, you can download The Complete Guide to Household Payroll, which provides instructions on managing payroll and taxes on your own. The IRS estimates that handling household payroll and taxes takes 60 hours a year. Some families rely on their accountants to take care of their nanny’s pay and taxes.
And then there are firms like GTM Payroll Services that can take care of nanny taxes for you and eliminate the time and hassles of trying to do this on your own.
4. Prepare your children for their new nanny
While you work on the administrative tasks of bringing on a nanny, you also want to prepare your children for their new caregiver.
Ideally, your kids have met and spent time with your nanny during the hiring process. It is a great way to introduce your final candidates to your children and see how they interact and get along.
Either way, it is vital that your kids are excited about having a nanny. Let them know how much fun it will be. Maybe even have them make a welcome card, artwork, homemade treat, or gift for your nanny’s first day.
Do not wait until the last minute to mention they will have a nanny as a caregiver.
Depending on the ages of your children, start preparing them several days to a couple of weeks ahead of time. Make having a nanny part of your everyday conversation. Talk about what you like about your caregiver or any special traits.
“Your nanny loves the park and hopes to take you there often.”
“Your nanny is a great singer. I bet they will sing your favorite songs with you.”
Encourage your kids to ask questions. This helps build a comfort level before your nanny’s first day.
Your children could pick a new toy, game, or activity to play with your new nanny. This will give them something to look forward to and help create a bond between your child and nanny.
5. Get ready for your nanny’s first day
Be prepared to spend some time – or even the whole day – with your nanny on their first day.
If you have the time, set up a training day (or ideally a few days) ahead of their first day to familiarize them with your home and schedule.
This could be especially helpful if you have a baby. On the first day, have your nanny shadow you as you go through your baby’s schedule of feeding, changing, playing, and napping.
On day two, let them take the lead on caring for your baby with you next to them. Then, for the third day, let them tend to your baby while you do other things around the house (or maybe even work from home). Your nanny will be “on their own” but have you nearby for any questions.
If you only have older children, let them participate in the training. They can show their nanny around the house, introduce them to neighbors and friends, and discuss their favorite activities and food. This will help your kids feel in control and more adaptive to change.
As a reminder, any training time should be paid.
6. Decide whether your nanny will drive a family car
If your nanny will drive your children places – for example, to the park, for sports practices or music lessons, or to appointments – will they drive their car or use a family car? There are considerations for both options. If your nanny is using their car, ensure it is safe, in good running condition, equipped with the right-sized car seats, and properly insured. If using your car, you will need to add them to your insurance policy.
7. Determine if you need workers’ compensation
Not having required workers’ compensation coverage is probably a family’s most significant financial risk when hiring someone to work in their home. Fines for non-compliance can easily reach tens of thousands of dollars. If your nanny gets hurt on the job, you are on the hook for medical bills, lost wages, and possibly a lawsuit. Make sure you get a policy if you need one. Even in states where it is not required, voluntary coverage is a smart idea.
Workers’ comp typically can not be added to a homeowner’s insurance policy (only in California and New Jersey). The GTM Insurance Agency, an affiliate of GTM Payroll Services, has licensed insurance brokers on staff who can obtain coverage for you and manage any audits and invoices.
GTM Payroll Services relieves the administrative hassles of household payroll for domestic employers by proviing a one-stop shop for payroll, tax filings, compliance and insurance. No risk. No hassles. No worries. If you or your employer have any questions about domestic employment, call (1-800-929-9213) or email GTM for a free, no obligation consultation.