A written nanny contract protects both you and your childcare provider by clarifying expectations, responsibilities, and compensation upfront. Without one, disputes over hours, pay, duties, or termination can quickly become messy and costly. If you're hiring a full-time nanny, a solid contract is non-negotiable—think of it as the foundation of a professional working relationship.
Why a Written Contract Matters for Full-Time Nanny Arrangements
Verbal agreements fall apart under pressure. When you're entrusting someone with your children's daily care and your household, ambiguity breeds conflict. A contract documents what you've both agreed to, gives you legal recourse if things go wrong, and provides clarity if either party needs to exit the arrangement. Most importantly, it shows your nanny that you're running a professional, legitimate household—which actually attracts more qualified candidates.
Key Compensation Terms to Lock Down
Your contract must specify exactly how much your nanny earns and when. Full-time nannies typically cost between $45,000 and $75,000 annually depending on your region, experience level, and number of children, but rates vary significantly. Here's what to clarify:
- Gross weekly or biweekly pay amount (not hourly estimates that shift based on schedule changes)
- Whether you'll cover taxes as an employer (you're legally required to if they're a W-2 employee)
- Overtime pay if hours regularly exceed 40 per week
- Holiday pay and which holidays are paid (Thanksgiving, Christmas, Easter, July 4th, etc.)
- Paid time off policy—typically 2-3 weeks annually for full-time nannies
- Sick leave—separate from PTO, usually 5-10 days per year
- Benefits like health insurance contributions, retirement matching, or mileage reimbursement
Put a start date and pay schedule in writing. Specify whether paychecks are direct deposit, when they're delivered each week, and what happens during the first partial pay period.
Define Duties and Responsibilities Clearly
Full-time nannies often do more than just supervise kids. State exactly what falls within their role to prevent misunderstandings later. Common duties include:
- Daily childcare (feeding, dressing, bathing, bedtime routines)
- Educational activities or light tutoring
- Meal preparation for the children
- Laundry for children's clothes
- Light tidying of children's areas
- School pickup and drop-off
- Doctor's appointment scheduling and attendance
- Age-appropriate discipline and behavior management
Be explicit about what's not included—housekeeping for the whole home, cooking adult meals, or caring for elderly relatives, for example. If expectations shift mid-employment, that's a contract amendment, not a casual request.
Employment Status and Tax Obligations
Determine whether your nanny is a W-2 employee or a 1099 independent contractor. Most full-time nannies are W-2 employees, which means you must withhold income taxes, Social Security, and Medicare. You'll also pay employer payroll taxes. This is a legal requirement, not optional.
Include language confirming employment status, at-will employment (unless you're in a state with different rules), and a statement that the nanny authorizes you to deduct taxes. If you're using a household payroll service like Care.com 's payroll feature or Bambino, reference that in the contract.
Termination and Notice Provisions
Specify how either party can end the arrangement. Standard practice for full-time nannies is two weeks' written notice from either side, though you may want to require more notice (three to four weeks) given the difficulty of finding a replacement on short notice. Clarify whether you'll pay out unused vacation time and how final payment works.
Add language about grounds for immediate termination without notice, such as dishonesty, theft, substance abuse, or any behavior that endangers the children.
Additional Protective Clauses
Include confidentiality language—your nanny shouldn't share details about your family, schedules, or home security. Add a clause confirming the nanny has passed a background check and any required certifications (CPR, first aid). State that your household rules apply regarding screen time, discipline methods, and media in front of children.
If you want to compare and find trusted full-time nannies while building your employment terms, Mercoly lets you browse vetted providers and compare their experience and rates in one place, making it easier to set realistic expectations for your contract.
Frequently Asked Questions
Q: Do I need a lawyer to create a nanny contract? You don't absolutely need one, but a family law attorney (typically $200–$500 for contract review) can catch liability gaps specific to your state. Many states also have nanny contract templates available online.
Q: Should I include background check requirements in the contract? Yes—state that employment is contingent on passing a background check, and confirm in writing that the nanny has already passed before signing.
Q: What happens if my nanny gets injured while working? You're required to carry workers' compensation insurance for full-time household employees in most states; add this requirement to your contract and confirm your policy covers them.
Use Mercoly to research full-time nanny providers in your area before finalizing terms so you know the market rate and expectations in your region.