A nanny contract is a household employment agreement: nannies are W-2 household employees (never 1099 contractors), typically paid $18–$30+/hour with overtime at 1.5× after 40 hours required by federal law for live-out nannies. The professional structure includes guaranteed hours (the nanny is paid for the agreed schedule even when the family doesn't need care), paid time off and holidays, duties scoped to child-related work, a mileage rate for driving (the IRS standard rate), tax withholding above the IRS threshold ($2,800/year in 2026), and 2–4 weeks' termination notice or severance.
Nanny Contract Template
Reviewed by the Agiled editorial teamUpdated June 2026
Nanny contracts protect a relationship that is — legally and practically — employment in a home. The IRS is unambiguous: a nanny on the family's schedule is a...
Part of our free contract template library — 75+ agreements in Word and PDF, ready to customize and sign.
Full template text
NANNY EMPLOYMENT CONTRACT
This Nanny Employment Contract ("Agreement") is entered into as of [Date] by and between:
Employer: [Parent/Guardian Full Name(s)], residing at [Address], Phone: [Phone Number], Email: [Email] ("Employer")
Nanny: [Nanny Full Name], residing at [Address], Phone: [Phone Number], Email: [Email] ("Nanny")
1. Employment Start Date and Duration
The Nanny's employment shall begin on [Start Date]. This Agreement is [at-will / for a fixed term ending on [End Date]]. During the at-will period, either party may terminate this Agreement with written notice as specified in Section 12.
2. Children Under Care
The Nanny shall provide care for the following child(ren):
| Name | Date of Birth | Allergies/Medical Conditions |
|---|---|---|
| [Child 1 Name] | [DOB] | [Details or "None"] |
| [Child 2 Name] | [DOB] | [Details or "None"] |
| 3. Work Schedule | ||
| a) Regular Hours: [e.g., Monday through Friday, 8:00 AM to 5:00 PM]. | ||
| b) Total weekly hours: [Number] hours per week. | ||
| c) The Employer may request additional hours with reasonable advance notice. Any hours beyond [40] per week shall be compensated at the overtime rate. | ||
| d) The Nanny is expected to arrive on time and ready to begin work at the scheduled start time. | ||
| 4. Job Responsibilities | ||
| The Nanny shall perform the following duties: | ||
| a) Provide attentive, engaged supervision and care for the child(ren) at all times during working hours. | ||
| b) Prepare nutritious meals and snacks for the child(ren). | ||
| c) Transport the child(ren) to and from school, appointments, and activities as directed. | ||
| d) Plan and engage the child(ren) in age-appropriate educational and recreational activities. | ||
| e) Assist with homework and school projects. | ||
| f) Bathe the child(ren) and manage bedtime routines. | ||
| g) Maintain the children's rooms, do children's laundry, and clean up after meals and activities. | ||
| h) Administer medications as prescribed and documented by the Employer. | ||
| i) Maintain daily logs of activities, meals, naps, and any notable events. | ||
| j) [Additional duties as agreed upon: _______________]. | ||
| 5. Compensation | ||
| a) Base Pay: $[Amount] per [hour / week], payable [weekly / bi-weekly] via [direct deposit / check / cash]. | ||
| b) Overtime: Hours exceeding [40] per week shall be compensated at 1.5 times the regular hourly rate. | ||
| c) The Employer shall review the Nanny's compensation annually, with any adjustments effective on the anniversary of the start date. | ||
| d) Year-End Bonus: The Employer shall provide a year-end bonus equivalent to [one week's / two weeks'] pay, at the Employer's discretion based on performance. | ||
| 6. Benefits | ||
| a) Paid Vacation: [Number] days per year, accruing at a rate of [Number] days per month. Vacation must be scheduled with at least [2 weeks'] notice and approved by the Employer. | ||
| b) Paid Sick Days: [Number] days per year. | ||
| c) Paid Holidays: The Nanny shall have the following paid holidays off: [List holidays]. | ||
| d) Personal Days: [Number] days per year. | ||
| e) Health Insurance: [The Employer shall contribute $[Amount] per month toward the Nanny's health insurance / Not provided]. | ||
| f) Other Benefits: [e.g., gym membership, professional development, meals during working hours]. | ||
| 7. Taxes and Employment Classification | ||
| a) The Nanny is classified as a household employee. The Employer shall withhold federal and state income taxes, Social Security, and Medicare taxes from the Nanny's pay in accordance with applicable law. | ||
| b) The Employer shall provide the Nanny with a W-2 form by January 31 of each year. | ||
| c) [Alternative: The Nanny is engaged as an independent contractor and is solely responsible for all tax obligations. The Employer shall provide a 1099 form as required by law.] | ||
| 8. Transportation | ||
| a) The Nanny [is / is not] required to transport the child(ren) as part of their duties. | ||
| b) The Nanny shall use [their own vehicle / the Employer's vehicle] for transportation. | ||
| c) If the Nanny uses their own vehicle, the Employer shall reimburse mileage at the current IRS standard rate of $[Amount] per mile. The Nanny must maintain a valid driver's license and automobile insurance with a minimum coverage of $[Amount]. | ||
| d) The Employer shall provide appropriate car seats for all child(ren). | ||
| 9. Emergency Procedures | ||
| a) In a medical emergency, the Nanny shall call 911 first, then contact the Employer immediately. | ||
| b) Emergency Contact 1: [Name], [Relationship], [Phone Number]. | ||
| c) Emergency Contact 2: [Name], [Relationship], [Phone Number]. | ||
| d) Pediatrician: [Name], [Phone Number], [Address]. | ||
| e) Nearest Hospital: [Name], [Address]. | ||
| f) The Nanny is authorized to consent to emergency medical treatment for the child(ren) if the Employer cannot be reached. | ||
| 10. House Rules and Policies | ||
| a) Discipline: The Nanny shall follow the Employer's discipline philosophy, which is: [Description]. Corporal punishment is strictly prohibited. | ||
| b) Screen Time: Limited to [Duration] per day, with approved content only. | ||
| c) Meals: The Nanny shall follow dietary guidelines provided by the Employer, including: [Details]. | ||
| d) Visitors: No personal visitors during working hours without prior approval. | ||
| e) Social Media: The Nanny shall not post photos, videos, or information about the child(ren) or the Employer's household on any social media platform. | ||
| f) Phone Use: Personal phone use should be limited to breaks and emergencies. | ||
| 11. Confidentiality | ||
| The Nanny agrees to maintain strict confidentiality regarding all aspects of the Employer's household, including but not limited to family routines, financial information, medical records, security systems, and personal matters. This obligation survives the termination of this Agreement. | ||
| 12. Termination | ||
| a) Either party may terminate this Agreement by providing [2 weeks' / 30 days'] written notice. | ||
| b) Upon termination, the Employer shall pay the Nanny for all hours worked, accrued but unused vacation days, and any outstanding expense reimbursements within [Number] business days. | ||
| c) Severance: If the Employer terminates the Nanny without cause, the Employer shall provide severance pay equal to [Number] weeks' pay. | ||
| d) The Employer may terminate this Agreement immediately, without notice or severance, for cause, including but not limited to: neglect of the child(ren), dishonesty, substance abuse while on duty, breach of confidentiality, or any illegal activity. | ||
| 13. Performance Reviews | ||
| The Employer shall conduct a formal performance review every [6 / 12] months. Reviews will cover job performance, adherence to house rules, communication, and areas for improvement. Compensation adjustments, if any, will be discussed during reviews. | ||
| 14. Dispute Resolution | ||
| Any disputes arising from this Agreement shall be resolved through good-faith discussion between the parties. If a resolution cannot be reached within [30] days, the parties agree to submit to mediation. This Agreement shall be governed by the laws of the State of [State]. | ||
| 15. Entire Agreement and Amendments | ||
| This Agreement constitutes the entire understanding between the parties. No verbal promises or representations shall be binding unless incorporated into this written Agreement. Any amendments must be in writing and signed by both parties. | ||
| SIGNATURES | ||
| Employer Signature: ___________________________ Date: _______________ | ||
| Print Name: ___________________________ | ||
| Employer Signature (if applicable): ___________________________ Date: _______________ | ||
| Print Name: ___________________________ | ||
| Nanny Signature: ___________________________ Date: _______________ | ||
| Print Name: ___________________________ |
- Hourly rate
- $18 – $30+, market-dependent
- Classification
- W-2 household employee, always
- Overtime
- 1.5× after 40 hrs (live-out, federal)
- Guaranteed hours
- The industry-standard protection
What your nanny contract should cover
Schedule and guaranteed hours
The weekly schedule and the guarantee: the nanny is paid for the agreed hours whether or not the family uses them — the family's vacation doesn't unpay the nanny. This is the single most important professional norm in nanny employment.
Compensation and overtime
Gross hourly rate (talk gross, not 'take-home' — net agreements create tax chaos), overtime at 1.5× after 40 hours as federal law requires for live-out nannies, and a banded rate for travel or overnight duty. Salaries that ignore overtime are unlawful for non-exempt household work.
Tax handling, stated plainly
W-2 employment: the family withholds Social Security/Medicare above the IRS threshold ($2,800 in 2026), pays employer FICA and unemployment taxes, and issues the W-2. A payroll service line in the contract ('payroll processed via...') keeps it real.
Duties: child-related, listed
Childcare, children's meals, children's laundry, tidying children's areas, school runs, activities. Family housekeeping, errands, and pet care are either excluded or listed with extra pay — duty creep is the top nanny grievance.
Driving and mileage
Whether the nanny drives the children, whose car, insurance confirmation, car seats provided by the family — and mileage reimbursed at the IRS standard rate when the nanny's own car is used.
PTO, holidays, and sick time
Two weeks' paid vacation is the professional norm (often one chosen by the nanny, one aligned to family travel), paid major holidays named, and sick days — which several states and cities mandate for household employees.
Confidentiality and social media
Family privacy protected; no posting the children's photos, names, or location. Nanny-cam disclosure belongs here too — covert audio recording is illegal in all-party-consent states, and transparency is better practice everywhere.
Sick-child and backup protocols
Whether the nanny cares for mildly ill children (usual: yes, with exclusions for fevers/contagion by agreement), the family's backup plan, and the nanny's own sick-day notification procedure.
Reviews and raises
An annual review date with a raise discussion (2–5% annual is customary), and a re-scoping conversation when a new baby or schedule change alters the job — new duties are a new negotiation, not an assumption.
Termination and severance
Two to four weeks' notice either way (or pay in lieu), immediate termination for cause defined narrowly (safety violations, dishonesty), and — because the children are attached — a transition plan where circumstances allow. Guaranteed hours apply through the notice period.
Typical nanny employment terms (U.S., 2026)
| Item | Typical range / rule | Notes |
|---|---|---|
| Hourly rate | $18 – $30+ | Metro markets and infants higher |
| Overtime | 1.5× after 40 hrs/wk | Live-out; live-in varies by state |
| Guaranteed hours | Full agreed schedule | Paid regardless of family use |
| Paid vacation | 2 weeks | Plus named paid holidays |
| FICA threshold | $2,800/year (2026) | W-2 and withholding above |
| Mileage (nanny's car) | IRS standard rate | Tracked and reimbursed |
| Termination notice | 2 – 4 weeks | Or pay in lieu |
Household employment rules layer federal tax law, FLSA overtime, and growing state/city mandates (paid sick leave, domestic-worker bills of rights in several states). A household payroll service keeps the compliance current.
How nanny contracts work in practice
The full-time live-out nanny
The standard arrangement: 40–50 guaranteed hours, gross hourly with 1.5× overtime above 40, paid via a payroll service with withholding and W-2, two weeks' PTO plus holidays, duties scoped to the children. The guaranteed-hours clause does the most work — the family buys schedule certainty (the nanny is theirs for those hours) and the nanny gets income stability (a family trip to the grandparents doesn't halve the paycheck). Families who treat guaranteed hours as negotiable lose professional candidates immediately.
The nanny share
Two families share one nanny — and the contract needs three-way clarity: the combined rate (typically each family pays 60–70% of a solo rate, netting the nanny 120–140%), whose home hosts on which days, how vacations interact (both families' guaranteed hours apply independently), sick-child rules across households, and what happens when one family exits the share (notice plus a rate adjustment or transition for the remaining family). Each family is typically a separate household employer for tax purposes — payroll services handle shares routinely.
Live-in arrangements
Room and board plus wages changes the overtime math (federal law exempts live-in domestic workers from overtime — though not from minimum wage — while several states like California impose their own daily/weekly overtime for live-ins) and demands sharper boundaries: defined on-duty hours versus genuinely free time, private quarters specified, whether lodging value counts toward wages (state rules cap this), and house rules that respect that the workplace is also the nanny's home. The contract should be more detailed than a live-out's, not less — proximity erodes boundaries without paper.
Mistakes that weaken a nanny contract
Paying a nanny on a 1099
A nanny working the family's schedule in the family's home is a household employee by IRS definition — the 1099 shortcut creates back-tax, penalty, and unemployment-claim exposure that surfaces at exactly the wrong moments.
Skipping guaranteed hours
Docking pay for the family's own vacations and light weeks makes the nanny's income unpredictable — and the position unattractive to professionals. Guaranteed hours are the market standard; budget accordingly.
Agreeing on a 'net' wage
Promising take-home pay makes the family's tax math unbounded and opaque. Agree gross, run payroll properly, and let withholding be what it is.
Salarying away overtime
A flat weekly salary for a 50-hour live-out schedule violates the FLSA — the overtime premium is owed regardless of labels. Structure the salary as base-plus-overtime math in the contract and the problem disappears.
Letting duties drift
Children's laundry becomes family laundry becomes housekeeping. The duty list plus the 'new duties, new negotiation' clause keeps the job the one that was accepted.
How to use this template
- 01
Download the nanny contract template in Word or PDF.
- 02
Set the schedule, guaranteed hours, gross hourly rate, and the overtime calculation.
- 03
Set up household payroll (or a payroll service) for withholding, employer taxes, and the W-2.
- 04
List the duties precisely, with driving, mileage, and car-seat terms.
- 05
Set PTO, holidays, sick leave per your state, and the annual review date.
- 06
Add confidentiality, termination notice, and severance terms, then sign before the first day.
Skip this template if…
- Occasional babysitting — sub-threshold, irregular sitting runs on a simpler babysitting agreement without employment machinery.
- Au pair placements — the State Department's J-1 program sets stipends, hours, and terms that override private contracts.
FAQs
How much does a nanny cost?
Typical rates run $18–$30+ per hour gross depending on market, experience, and the number/ages of children, with overtime at 1.5× after 40 hours for live-out nannies. On top of wages, families pay employer FICA and unemployment taxes — roughly 9–11% — plus any benefits offered.
Is a nanny an employee or independent contractor?
An employee, essentially always: the family sets the schedule, the duties, and the workplace, which satisfies the IRS household-employee definition. That means W-2 treatment, FICA withholding above $2,800/year (2026), employer taxes, and no 1099 — misclassification is the most common and most consequential nanny-tax mistake.
What are guaranteed hours in a nanny contract?
The family commits to paying the agreed weekly hours whether or not they use them — the nanny's income doesn't drop when the family vacations or grandma visits. It's the professional standard because the nanny holds those hours exclusively and can't backfill them on short notice.
Do nannies get overtime?
Live-out nannies: yes, federally — 1.5× after 40 hours per week, and a flat salary doesn't waive it. Live-in nannies are exempt from federal overtime (not minimum wage), but several states, including California, impose their own live-in overtime rules. The contract should show the calculation explicitly.
What taxes do I pay for a nanny?
Above $2,800 in annual wages (2026): Social Security and Medicare (7.65% withheld plus 7.65% employer-paid), federal unemployment tax above a lower threshold, and state unemployment/withholding per your state — typically reported via Schedule H with your own return. A household payroll service automates all of it for a modest monthly fee.
What should a nanny contract say about duties?
List them: childcare, children's meals and laundry, tidying children's areas, school runs, and activities — with family housekeeping, errands, and pet care either excluded or separately compensated. Pair the list with a clause that new duties (a new baby, added housekeeping) reopen the rate conversation.
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