Avoid Nanny Share Headaches: The Contract Checklist Every Family Needs

Aug 13, 2025 | GTM Blog, Household Employee Management

nanny-share

Creating a successful nanny share requires clear communication, and the foundation of that communication is a detailed, well-thought-out contract. With two (or more) families, two (or more) sets of children, and one caregiver, a nanny share has more moving parts than a standard nanny arrangement. A contract is essential for defining expectations and ensuring everyone is on the same page.

A nanny share contract is like a typical nanny contract, but with a few important distinctions. It covers the basics like pay, hours, and duties, but it also addresses the unique aspects of a shared arrangement. A mutually agreed-upon and signed contract will help prevent misunderstandings and provide a guide for everyone involved.

Key Components to Include in Your Nanny Share Contract

When drafting your nanny share contract, it’s crucial to be thorough and consider all potential scenarios. Here are some key areas to address.

The Nanny’s Role in the Process

Involve your nanny in the contract-writing process. An experienced caregiver can offer valuable insights into what works and what doesn’t, especially if this is your first nanny share. By including their perspective, you show respect for their professionalism, which can lead to greater job satisfaction and a more engaged caregiver.

Nanny Share Nuances

This is where the contract must go beyond a standard agreement.

Location of Care: Will care always be at one family’s home, or will it rotate? Clearly state where the nanny needs to arrive for work each day.

Pay Rate: Typically, each family pays a percentage of the nanny’s hourly rate (e.g., two-thirds to three-quarters). This structure benefits both parties: families can afford a higher-quality caregiver, and the nanny earns more for managing multiple households. Remember to ensure the nanny’s pay meets at least minimum wage and that they receive time-and-a-half for any overtime. The contract should also clarify payment in situations like one family needing fewer hours or one family having more children.

Taxes: Since each family in a nanny share is considered a separate employer, you must handle your tax obligations. This includes obtaining federal employer identification numbers, filing new hire reports, withholding and remitting taxes, and providing W-2s at the end of the year.

Paid Time Off (PTO): How will PTO be handled? What if one family goes on vacation but the other doesn’t? The contract should specify how PTO is coordinated and that the nanny is still paid for their normal hours even if one of the nanny share families doesn’t need care.

Backup Care: What is the plan if the nanny is sick or on vacation? Will a parent stay home, or will you arrange for a temporary nanny?

Transportation: If the nanny will be transporting the children, you need a plan. Will the nanny use their own car, or will a host family provide a vehicle? If the nanny uses their own car, include a mileage reimbursement policy. If a family provides a car, the contract should outline rules for seatbelts, car seats, and distracted driving.

Daily Expectations: Detail the daily routine and house rules. How will the nanny handle children of different ages? What are the rules for screen time, toys, and snacks? The contract should reflect an agreed-upon approach to these daily logistics.

Performance Reviews and Disciplinary Actions: Outline a clear process for addressing concerns or issues with the nanny’s performance. Both families should be involved in this discussion. The contract should specify how concerns are communicated and what disciplinary actions, if any, will be taken.

Paid Activities: How will you handle costs for activities, such as museum trips, park fees, or lunch outings? Consider setting a weekly cash budget or providing the nanny with a card for these expenses.

Discipline and Parenting Styles: Ideally, nanny share families have a similar philosophy on discipline. The contract should detail how the nanny is expected to handle misbehavior to ensure a consistent approach.

Playdates and Privacy: Clarify rules around playdates and privacy. Are playdates with other children acceptable, and if so, how? What are the rules about the nanny sharing photos of the children on social media?

Food: Who provides food for the children? If the host family provides all meals, will the other families reimburse them? The contract should also address any food allergies or dietary restrictions.

Updates and Communication: Decide how you’d like to receive updates. Will the nanny keep a daily log, or will you have a quick chat at the end of the day?

Sick Children: This is a crucial section. What is the policy if a child from either family gets sick? Can a sick child still participate in the nanny share? The contract should specify that if a child is sick and stays home, the nanny is still paid their full hourly rate.

Termination Notice: How much notice must the nanny give if they quit? Given the complexity of finding a replacement for a nanny share, you may want to require a longer notice period.

You might also consider using separate contracts for each family and the nanny, especially if there are different arrangements regarding pay, transportation, or food.

Drafting a comprehensive nanny share contract may seem like a lot of work, but it’s the best way to ensure a smooth, successful, and long-lasting arrangement. For help with your household employment, give us a call at (800) 929-9213 or book a complimentary, no-obligation consultation.