What Is a Nanny
A nanny is a caregiver employed directly by a family to provide childcare in the family's home. Unlike center-based care, nannies work in a private household setting and are typically hired as independent contractors or household employees. Most nannies operate as license-exempt providers, meaning they are not required to meet the same regulatory standards as licensed childcare centers or family childcare homes.
Employment and Legal Structure
When you hire a nanny, you become a household employer with specific tax and labor obligations. You must withhold Social Security and Medicare taxes, file a Schedule H with the IRS, and carry workers' compensation insurance in most states. Annual payroll compliance costs typically range from $1,500 to $3,000 depending on your state and the nanny's salary.
The average nanny salary ranges from $500 to $1,200 per week depending on experience, location, and number of children. Nannies with infant certifications, CPR training, or previous experience in NAEYC-accredited programs command higher rates.
Licensing and Oversight
Most nannies operate license-exempt, meaning they do not undergo state licensing inspections, background checks administered by childcare licensing agencies, or mandatory training requirements. However, some states require nannies to complete at least CPR and First Aid certification. A few states, including California and New York, have introduced voluntary nanny registries that track completion of basic health and safety training.
If you use Child Care and Development Fund (CCDF) subsidies to pay for nanny care, your state may impose stricter requirements such as background clearances, immunization records, and minimum training hours. Check your state's CCDF nanny requirements before hiring.
Developmental Continuity and Care Quality
Nanny care allows for consistent, one-on-one attention that can support individualized developmental tracking. A knowledgeable nanny can monitor milestone achievement across the developmental domains, observe language development patterns, and adapt activities to match the child's current stage. You can request that your nanny track developmental benchmarks and share observations during regular check-ins.
To ensure quality care, many families ask nannies to reference developmental screening tools such as the Ages and Stages Questionnaire (ASQ) or to have prior experience in early childhood education settings. Some families hire nannies who have completed coursework aligned with NAEYC professional development standards, though this is voluntary.
Common Questions
- Do I need to run a background check on a nanny? Background checks are not required by law for license-exempt nannies in most states. However, reputable nanny agencies typically conduct background screening, and you can hire a third-party service to verify criminal history and references independently. Many families consider this standard practice.
- Can I use CCDF subsidies to pay a nanny? Yes, but your state's CCDF program sets specific eligibility criteria. Some states require the nanny to complete registered childcare training, maintain minimum qualifications, or work for an agency. Contact your state's childcare subsidy program to confirm approved nanny payment arrangements.
- How do I track my child's developmental progress with a nanny? Request that your nanny maintain observation notes and share progress on communication, social skills, fine and gross motor development, and cognitive milestones. You can provide your nanny with a copy of your pediatrician's developmental screening tool to ensure consistency between home and medical visits.