Here in the U.S., where we don’t have a national child care system that working families can plug into, finding child care is a rite of passage for new parents. For those of us who choose to hire a nanny to care for our child, it can feel overwhelming to go through the hiring process and to become an employer. We’ve created this guide to walk you through the process.
Key Takeaways
- Start the hiring process early
- Calculating fair employment costs to determine what you can afford.
- Think through the job, and conduct a thorough interview process
- Use a written agreement.
Give yourself plenty of time to find and hire the right nanny
Give yourself a couple of months to create a detailed job description, sift through applications, interview candidates, and finalize the hire. Pro tip: Post your job six weeks before you need someone, and aim to wrap up interviews about four weeks out. The more time you have, the less stressed you’ll be—and the better your odds of identifying the person that is the right match.
Calculate the costs of employing a nanny
Employing a nanny means more than just an hourly rate. Be sure to pay a living wage and look at hours and schedules to determine if you will need to pay overtime. Plan for raises, a year end bonus, and even health care and retirement contributions.
Use the MIT cost of living calculator as a guide for an hourly rate. As of February 2025, some base living wage rates by region are:
- Los Angeles Metro: $28.88/hour
- New York City Metro: $28.87/hour
- Indiana (lower cost of living): $20.81/hour
For a nanny caring for multiple children or with many years of experience, expect to pay more.
If the cost of employing a nanny is too high, consider a nanny share—where families split costs and caregiving duties. Check out our guide on starting a nanny share to see if it’s right for you.
Paying on the books vs. under the table
Whether to pay on the books or off is a question to discuss with your new hire. Paying “on the books” (paying payroll taxes), costs about 10% more according to Nest Payroll. For example, if you offer the nanny $20.00 per hour, your total expense will be more like $22 an hour. Paying on the books is required by law if you pay more than a couple thousand dollars in one year, though some states have even lower thresholds.
There are significant reasons to pay a nanny on the books. As explained by Nest Payroll, “Your employee receives unemployment benefits, Social Security, Medicare, verifiable income for an apartment lease or car loan.”
For various reasons, some nannies may prefer to be paid off the books, so ask the nanny you employ what their preference is.
Write and post a nanny ad
Do you prefer a nanny who is a non-smoker? CPR certified? Spanish speaking? Do they need to be comfortable preparing bottles? Will they need to make lunch? Do they need to have a car?
The clearer the job description, the more likely you are to connect with the right candidates. You may want to indicate which parts of the nanny job description are things you’d prefer versus absolute “musts.” Maybe for you, being vaccinated against COVID is essential while CPR certification is just nice-to-have.
Our sample nanny ad might help inspire you, or you can copy and customize it.
Interview potential nannies
The interview is where you’ll get to know candidates and if their skills are a match for what you are looking for. Start with a quick screening call to confirm basics like if the commute to your home is comfortable for them, and if they have pet allergies. The full interview is a time to dive deeper. You’ll want to learn about the nanny’s experience working with children and other families. Some helpful pointers:
- Ask open-ended questions.
- Pay attention to the rapport between you and ease of communication
- Provide space for their questions which can reveal as much about their experience and passion as their answers to yours.
Remember, their questions can reveal as much about their experience and passion as their answers.
For a more indepth resource on interviewing, read How to Interview a Nanny.
Check references and schedule a trial day
Before making an offer, have conversations with the candidate’s previous employers. Ask how long they worked together, what the job entailed, and what made the nanny a standout caregiver.
Want extra peace of mind? Arrange a paid trial day. This gives you, your child, and the nanny a chance to test the waters.
Offer the nanny a contract and discuss benefits
Having a written agreement is essential. Developing the agreement should also be collaborative. Download a sample agreement and sit down with your new hire and go over details of the job. This will help you both think about what is important while also demonstrating that you respect the nanny’s work! Contracts ensure the basics of fair employment are covered: fair pay, your expectations, and paid time off.
See if the nanny has health insurance through another job, partner or spouse, or the Affordable Care Act. You can contribute toward those costs or help them pay for care in many ways. Check out our healthcare resource to explore your options.
A written agreement should also include all the information a nanny might need. Like emergency contacts, food or medication allergies, and house rules, etc.
Keep communication flowing
Plan to have regular check-ins to discuss what’s going well and what needs work. Many families find that it’s also important to have some transition time at the start and end of each day to talk about teething, milestones, schedules, or adorable kiddo antics. Keep the communication going for a positive relationship. For more guidance about communicating, read our resource Good Communication & Difficult Conversations.
Next Steps
- Download our sample nanny ad and sample work agreement.
- Read about paid time off and meal and rest breaks.
- Join Hand in Hand’s mailing list.
