How does the nannyshare financial situation work?

[Anonymous]

If the nanny is on the books and there are two families in the nannyshare, how does it work? We'd be grateful to hear from others about what has worked and what has not worked. Do both families register as a business, do they do it together, does one family do and the then the other pays, how does it work?

[Anonymous]

We did the financials completely separately. Because half the nanny’s pay is less than minimum wage, we can’t pay her that through our payroll service (we both use poppins payroll) we each essentially pay her for 20 hrs per week at her full rate. Never been a problem.

[Anonymous]

We both pay our nanny ($15 per hour each) through our individual payroll service. Generally we need the overtime coverage while the other family doesn’t and paying separately is easier.

[Anonymous]

You are each independent employers in the eyes of the IRS so it's handled separately.

[Anonymous]

Also you will EACH need a workers comp policy

[Anonymous]

Anonymous wrote:Also you will EACH need a workers comp policy

Only if you share hosting. You only need it if you host.