Is a nanny considered an employee or an independent contractor?

In the United States, a nanny is almost always classified as a household employee, not an independent contractor. The IRS applies the common law test: if the family controls when, where, and how the nanny works, the nanny is an employee. This means the family must withhold Social Security and Medicare taxes, pay their share of FICA, and comply with federal and state employment laws.

Do I need to pay nanny taxes?

Yes, if you pay a U.S. household employee $2,700 or more in a calendar year (2024 threshold), you are required to withhold and pay Social Security and Medicare taxes (FICA). You must also pay federal unemployment tax (FUTA) if you pay $1,000 or more in any quarter. Most American states also require state unemployment insurance.

What should a nanny contract include?

A comprehensive U.S. nanny contract should include the names and contact details of both parties, the children's names and ages, a detailed work schedule, a complete list of duties, the compensation structure including overtime, benefits such as paid time off and sick days, house rules and policies, American confidentiality expectations, termination terms including notice periods, and signature lines for both parties.

Is overtime pay required for nannies?

It depends on your state. Under U.S. federal law, live-in domestic workers are exempt from overtime requirements. However, non-live-in nannies who work more than 40 hours per week are generally entitled to overtime at 1.5 times their regular rate. Several American states, including New York, California, and Massachusetts, have additional overtime protections for domestic workers that may be more generous than U.S. federal law.

How much notice should be given before terminating a nanny?

Most U.S. nanny contracts specify a two-week notice period for either party. This gives the American family time to find a replacement and the nanny time to find new employment. Some contracts include exceptions for immediate termination in cases of gross misconduct, neglect, or safety concerns. Severance pay of one to two weeks' wages is a common practice but is not legally required in most American states.

Can I use a nanny contract for a part-time babysitter?

A nanny contract is designed for ongoing, regular U.S. employment arrangements. For a part-time babysitter who works occasional or irregular hours, a simpler babysitter agreement may be more appropriate. However, if the part-time American caregiver works on a regular schedule and earns above the nanny tax threshold, the same U.S. tax obligations and employment protections apply.

Does a nanny contract need to be notarized?

No. A U.S. nanny contract does not require notarization to be legally binding. The signed agreement between the American family and the nanny is sufficient. However, both parties should keep a signed copy for their records. If disputes arise, the written contract serves as the primary evidence of the agreed-upon terms.

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NANNY EMPLOYMENT CONTRACT

Domestic Worker Employment Agreement

EMPLOYER (FAMILY)

The Anderson Family

Jennifer Anderson and Mark Anderson 542 Hillcrest Drive, Scottsdale, Arizona 85251 (480) 555-0321 andersons@email.com

EMPLOYEE (NANNY)

Maria Gonzalez

1207 Cactus Lane, Tempe, Arizona 85281 (480) 555-0987 maria.g@email.com Emergency: Rosa Gonzalez (mother) - (480) 555-1234

Start: April 1, 2026 | Schedule: Monday-Friday, 7:30 AM - 5:30 PM

$22.00/hr | Weekly

This Nanny Employment Contract (this "Agreement") is entered into as of April 1, 2026, by and between The Anderson Family ("Employer") and Maria Gonzalez ("Employee" or "Nanny"). The Parties agree to the following terms and conditions of employment:

PURPOSE AND SCOPE

This Agreement establishes the terms and conditions of employment for the Nanny to provide childcare and related domestic services in the Employer's home. Both Parties enter into this Agreement voluntarily and in good faith.

EMPLOYMENT TERMS

The Nanny's employment shall commence on April 1, 2026 and shall continue until terminated by either Party in accordance with the terms of this Agreement.

Work Schedule: Monday-Friday, 7:30 AM - 5:30 PM

The Employer acknowledges that the Nanny is a household employee, not an independent contractor, and shall comply with all applicable tax withholding and reporting requirements. Where the Nanny's cash wages equal or exceed the annual threshold set under the Federal Insurance Contributions Act (IRC Sections 3111, 3121(a)(7)(B); $2,700 for 2024), the Employer shall withhold and remit the Employer and employee shares of Social Security and Medicare (FICA), pay federal unemployment tax under the Federal Unemployment Tax Act (FUTA, IRC Section 3301), file IRS Schedule H (Form 1040) annually, and furnish the Nanny with IRS Form W-2 and file Form W-3 with the Social Security Administration. The Employer shall also verify the Nanny's identity and authorization to work in the United States on USCIS Form I-9 pursuant to 8 U.S.C. Section 1324a. Proper household-employee classification may enable the Employer to claim the Child and Dependent Care Credit under Internal Revenue Code Section 21.

COMPENSATION

The Nanny shall be compensated at a rate of $22.00 per hour, payable on a Weekly basis.

Overtime Rate: $33.00 per hour for all hours worked in excess of 40 hours in a single workweek, in compliance with the Fair Labor Standards Act, 29 U.S.C. Sections 201 et seq. (minimum wage under 29 U.S.C. Section 206), the Department of Labor's Home Care Final Rule (29 C.F.R. Section 552.6), which extended minimum-wage and overtime protections to most domestic-service employees, and applicable state domestic-worker bills of rights (including New York Labor Law Sections 160-a and 161-a, California AB 241 / Labor Code overtime provisions for domestic workers, Massachusetts General Laws Chapter 149 Sections 190 to 191, and the Illinois Domestic Workers' Bill of Rights, 820 ILCS 205).

Payment shall be made by check, direct deposit, or another mutually agreed-upon method. The Employer shall maintain accurate records of all hours worked and compensation paid, and shall provide the Nanny with an itemized pay stub for each pay period.

WORK ENVIRONMENT AND SAFETY

The Employer shall provide a safe working environment for the Nanny consistent with the general-duty clause of the Occupational Safety and Health Act, 29 U.S.C. Section 654, including adequate heating, cooling, lighting, and ventilation. The Employer shall maintain all necessary safety equipment including first aid supplies, smoke detectors, fire extinguishers, and child-proofing measures appropriate to the ages of the children in the home. The Nanny shall have unrestricted access to food and beverages during working hours, use of a rest area during breaks, and access to bathroom facilities.

WORKERS’ COMPENSATION, ANTI-DISCRIMINATION, AND MANDATED REPORTING

Workers’ Compensation: Where required by the governing state’s workers’ compensation statute for household employees (including, for example, New York Workers’ Compensation Law Section 2(3) and California Labor Code Section 3351(d)), the Employer shall procure and maintain workers’ compensation insurance covering the Nanny for work-related injury or illness. Misclassification or failure to maintain required coverage may expose the Employer to statutory penalties and direct liability for workplace injuries.

Equal Employment Opportunity: The Employer shall not discriminate against the Nanny on any basis prohibited by applicable law. Title I of the Americans with Disabilities Act, 42 U.S.C. Section 12111(5), generally applies to employers with fifteen (15) or more employees; however, many state fair-employment statutes (including California’s FEHA, which applies at five or more employees, and certain domestic-worker bills of rights) reach household employers at lower thresholds. The Employer shall comply with all such applicable state and local anti-discrimination laws.

Mandated Reporter: The Nanny acknowledges that nannies and other caregivers are designated mandated reporters of suspected child abuse or neglect under applicable state child-abuse reporting statutes and agrees to comply with the reporting requirements of the jurisdiction in which the Services are performed.

DUTIES AND RESPONSIBILITIES

The Nanny's primary responsibility is the care and supervision of the following child(ren):

Emma Anderson (5 years old), Jack Anderson (3 years old)

The Nanny's duties shall include, but are not limited to:

Primary childcare for both children, school pick-up/drop-off for Emma, meal preparation for children, light housekeeping in children's areas, homework assistance, outdoor play supervision, organizing playdates

Transportation: The Nanny is authorized to transport the child(ren) using the family vehicle. The Employer shall maintain adequate insurance coverage on the family vehicle listing the Nanny as a covered driver. The Nanny shall possess a valid driver's license and maintain a clean driving record.

The Nanny shall not be required to perform general housekeeping duties unrelated to childcare unless mutually agreed upon in writing, with appropriate additional compensation.

BENEFITS AND PAID LEAVE

Paid Time Off (PTO): The Nanny shall receive 10 paid days off per year, to be scheduled with reasonable advance notice and mutual agreement. Unused PTO may not carry over to the following year unless otherwise agreed in writing.

Sick Days: The Nanny shall receive 5 paid sick days per year. The Nanny shall notify the Employer as early as possible when unable to work due to illness. If the Nanny is unable to work for more than three consecutive days, a doctor's note may be required.

Paid Holidays: New Year's Day, Memorial Day, July 4th, Labor Day, Thanksgiving, Christmas Day. If the Nanny is required to work on a paid holiday, compensation shall be at one and one-half (1.5) times the regular hourly rate.

Health Insurance: $150/month toward health insurance premiums. The Employer is not required to provide health insurance coverage but may voluntarily contribute toward the Nanny's individual health plan premiums.

CONFIDENTIALITY AND PRIVACY

The Nanny agrees to maintain strict confidentiality regarding all personal, financial, medical, and family information learned during the course of employment. This includes, but is not limited to, the family's daily routines, security arrangements, financial matters, personal relationships, medical conditions, and any other private information. The Nanny shall not disclose any such information to third parties during or after the term of employment. The Nanny further agrees not to post photographs, videos, or information about the family or children on any social media platform, website, or public forum without the prior written consent of the Employer. Violation of this confidentiality clause shall be considered a material breach of this Agreement.

TERMINATION

Either Party may terminate this Agreement at any time, for any reason, by providing written notice to the other Party.

Notice Period: 2 weeks written notice is required, except in cases of gross misconduct, endangerment of the child(ren), or other circumstances warranting immediate termination.

Severance: 1 week pay per 6 months of service

Upon termination, the Employer shall pay all wages due through the last day of work, including any accrued but unused PTO, in accordance with applicable state law. The Nanny shall return all keys, access devices, and family property upon termination.

10.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Employer's residence is located, including applicable domestic worker protection statutes and labor laws. In the event of any dispute arising under this Agreement, the Parties agree to first attempt resolution through good-faith negotiation. If negotiation is unsuccessful, the Parties may pursue mediation before resorting to litigation.

11.

ENTIRE AGREEMENT

This Agreement constitutes the entire understanding between the Parties with respect to the Nanny's employment and supersedes all prior negotiations, representations, or agreements, whether written or oral. Any amendments or modifications to this Agreement must be made in writing and signed by both Parties. If any provision of this Agreement is found to be unenforceable, the remaining provisions shall continue in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated.

EMPLOYER

Jennifer Anderson

Date: ____________________

EMPLOYEE (NANNY)

Maria Gonzalez

Date: ____________________

Available as a print-ready PDF or an editable Microsoft Word (.docx) file.

What Is a Nanny Contract?

A nanny contract is a written employment agreement used throughout the United States between a family and a nanny that spells out the terms and conditions of the working relationship. It covers everything from daily duties and work schedule to compensation, benefits, house rules, and termination conditions. Having a written contract protects both the American family and the nanny by setting clear expectations from the start.

In the United States, nannies are classified as household employees under IRS guidelines, not independent contractors. This means families who employ a nanny are required to withhold and pay employment taxes (commonly called the "nanny tax"), comply with federal and state wage and hour laws, and follow applicable labor regulations. A written contract serves as the foundation for this employment relationship.

Beyond U.S. legal compliance, a nanny contract reduces the chance of misunderstandings about responsibilities, pay, and time off. It addresses common friction points before they become problems, such as expectations around overtime, sick days, holiday schedules, and how the nanny should handle discipline, meals, and screen time. American families who use written nanny contracts report higher satisfaction and longer nanny retention.

What's Covered in This Template

Doxuno's nanny contract template covers all the essential sections needed for a professional, legally sound employment agreement between a U.S. family and their nanny.

Family & Nanny Information

Work Schedule

Job Duties & Responsibilities

Compensation & Pay Schedule

Benefits & Paid Time Off

House Rules & Policies

Confidentiality

Tax & Payroll Obligations

Termination & Notice Period

Emergency Procedures

Trial Period

Signatures

How to Create Your Nanny Contract

Doxuno's template makes it easy to build a professional nanny contract. Just fill in each section and download your PDF.

1
Enter family and nanny information
Provide the full legal names and addresses of the employing family (parents or guardians) and the nanny. Include the names and ages of the children who will be in the nanny's care, along with any relevant medical or allergy information.
2
Define the work schedule and duties
Specify the regular work schedule including days of the week, start and end times, and any expectations for overtime, weekend, or overnight care. List the nanny's primary duties such as childcare, meal preparation, school transportation, homework help, and child-related housekeeping.
3
Set compensation and benefits
Enter the hourly rate or weekly salary, the pay schedule (weekly or biweekly), and the overtime rate for hours beyond 40 per week. Add any benefits such as paid vacation days, sick leave, paid holidays, health insurance contributions, or a year-end bonus.
4
Add household rules and policies
Outline house rules the nanny should follow, including screen time limits, the family's approach to discipline, food and allergy guidelines, the guest policy, vehicle use permissions, and expectations about phone usage during work hours. Include confidentiality expectations about the family's private matters.
5
Set termination terms and download
Specify the notice period required from both parties (typically two weeks), list grounds for immediate termination, and note any severance provisions. Both the family and the nanny sign the agreement. Download the completed contract as a professional PDF for your records.

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Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.

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Legal Considerations for Nanny Contracts

Hiring a nanny comes with real legal obligations. Understanding the key employment laws helps families stay compliant and protects the nanny's workplace rights.

This template is provided for informational purposes and does not constitute legal advice. For questions about nanny tax obligations, state-specific labor laws, or complex employment situations, consult a licensed employment attorney or tax professional.

Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed employment and domestic labor law professionals in the United States to ensure accuracy for standard household employment situations.

The "Nanny Tax" Explained

If you pay a U.S. household employee $2,700 or more in a calendar year (2024 threshold, adjusted annually), you must withhold and pay Social Security and Medicare taxes (FICA), which total 15.3% split evenly between employer and employee. You must also pay federal unemployment tax (FUTA) if you pay $1,000 or more in any quarter. Use IRS Schedule H (Form 1040) to report American household employment taxes annually.

State Domestic Worker Laws

Several U.S. states have enacted Domestic Workers' Bills of Rights that provide additional protections including overtime pay, rest periods, meal breaks, and protection from harassment. New York, California, Massachusetts, Oregon, Hawaii, Connecticut, Illinois, and Nevada all have specific American domestic worker protections. Check your state's labor department for the rules that apply in your location.

Overtime and Wage Requirements

Under the U.S. Fair Labor Standards Act (FLSA), live-out nannies who work more than 40 hours per week are entitled to overtime at 1.5 times their regular hourly rate. Live-in nannies are exempt from federal overtime requirements, but many American states (including New York and California) have eliminated this exemption. The nanny must also be paid at least the applicable U.S. federal or state minimum wage, whichever is higher.

Workers' Compensation

Many U.S. states require families who employ household workers to carry workers' compensation insurance. This coverage protects the nanny if they are injured on the job and protects the American family from personal liability. Even in states where it is not strictly required for domestic workers, carrying this coverage is strongly recommended.

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