If the nanny share is not in your home...

[Anonymous]

Is the nanny still your employee? We are going to participate in a nanny share w 2 others. It is a long standing share, and if we were unhappy, we could not fire the nanny. We would need to leave the share instead. The nanny is the homeowner's nanny, but to share costs, other families participate in the share. Of course we pay our share. I want to check into my responsibilities and liabilities in such a situation.

[Anonymous]

Totally illegal. The home is required by law to have a daycare license by the county. No one will insure your child on their property.

[Anonymous]

? It is 3 kids total - 1 kid from each family. We each pay the same rate, which was established by the host as she found and hired the nanny. Like I said - if we didnt like the nanny, she isnt technically my employee so I couldn't fire her. So, does this mean I need to consider nanny taxes etc or just assume the host family is doing that.

[Anonymous]

I can't speak to other parts of the country, but in our state this is perfectly legal as long as the care isn't provided in the nanny's home. Nannyshares are very common in many areas. We did two shares, one with each kid, that were both set up this way. The only real distinction from having a rotating share or having your own nanny is that the other family pays the workers' comp insurance entirely (we chipped in for one share and for the other the family considered it a tradeoff for a more convenient situation for their family). The policy covered the nanny and the child who didn't live there, just as it would in a rotating nannyshare. In both shares it was the case that the nanny was well established with the other family and if we had been unhappy, we would simply have left the share, but they would have kept the nanny.

And yes, the nanny is still your employee and you pay taxes just as you would if it were not a share (or if it were in your home). The taxes are based on your hours, not the total pay the nanny is receiving (and you should ideally be paying the nanny directly for your portion).

[Anonymous]

Not legal in DMV. If you believe this is legal where you are, name your city and state.

[Anonymous]

Nannyshares are license-exempt in California. It looks like PP is correct that MD and VA do require city/county permits for this. For VA it sounds like permitting primarily includes background checks, First Aid/CPR certification, and a home safety inspection, so not a huge burden (since arguably the first two should be done anyway; I can imagine that the inspection might turn up some things the host family doesn't necessarily want to address, though).

[Anonymous]

It doesn't matter that someone set up the share and you are joining mid-stream, or that you don't have the power to fire the nanny. You and the other parents are considered "joint" employers by the IRS, and you are, as a group, required to make sure that all labor laws are followed. You owe the taxes on your share.

The two areas where you pay as a group would likely be unemployment insurance (divided equally three ways, but not paid on the first $7500 from each family), and workman's comp (you only need one policy).

BTW, the IRS doesn't care if licensing is required. They only care if you follow federal tax and employment law. It's your state you'd have to deal with if the share is illegal.

[Anonymous]

Nanny shares aren't illegal in the DMV. Trolls have been claiming that for years on this board when it isn't true.

[Anonymous]

Anonymous wrote:Nanny shares aren't illegal in the DMV. Trolls have been claiming that for years on this board when it isn't true.

Please stop lying. I've personally gone down to the county offices that license home daycares. They have regulations that dictate who must be licensed.

Basically, when you pay someone to provide care in their home (or your friend's home), you want to have your child covered by the homeowner's insurance. But no insurance company will cover for your child's safety without a license to insure that basic safety practices were in place. This seems like common sense to me.

So if anyone here still thinks nanny shares are legal, name your town, and I'll call up licensing in the morning and post the name of the person I speak with.

Also, just ask the hosting family if their homeowner's insurance would cover your child in case your child was injured. If they say "yes", ask which insurance company they use. Name that company here. I guarantee you, no homeowners insurance would cover your child. Of course it's different for play dates, as long as you aren't operating a business by accepting payment.

Does everyone understand this?

[Anonymous]

I'm not in the DMV and was surprised that they would be illegal so looked it up. A 30-second search confirmed that in Virgina yes, they need to have city/county permits in most areas (care for fewer than five children) but no, they do not need to be licensed with the state (five or more children). Maryland appears to require a state license. They are exempt from licensing in DC per OSSE website. So "illegal in the DMV" is a little overblown, but yes, more steps in MD and VA than in other parts of the country.

[Anonymous]

The lack of homeowners accident insurance coverage is a HUGE concern for lots of parents.

[Anonymous]

For insurance you get a rider on your policy for this. I'm sure it varies by company (and no idea how it works in states where a license is required since presumably they need a copy of that) but ours needed hours of work and names of employee and the second child. I don't remember it being hugely expensive.

[Anonymous]

Anonymous wrote:For insurance you get a rider on your policy for this. I'm sure it varies by company (and no idea how it works in states where a license is required since presumably they need a copy of that) but ours needed hours of work and names of employee and the second child. I don't remember it being hugely expensive.

What town and what insurance company? Or are you fibbing?

[Anonymous]

This was State Farm in California. But I assume any major insurer who provides workers' comp can set this up. (I think there are a few who don't offer this and then you probably have to get a standalone policy, if such a thing exists, or switch companies.)

[Anonymous]

Anonymous wrote:This was State Farm in California. But I assume any major insurer who provides workers' comp can set this up. (I think there are a few who don't offer this and then you probably have to get a standalone policy, if such a thing exists, or switch companies.)

We're in the DMV here.