Being a nanny means you do much more than just care for kids, you help families thrive. But did you know that how you’re paid can shape your financial future, your legal rights, and even your peace of mind?
Let’s talk about why being paid “on the books” isn’t just a formality, it’s one of the most important steps you can take for your security and long-term success.
Let’s talk about why being paid “on the books” isn’t just a formality, it’s one of the most important steps you can take for your security and long-term success.
What It Means to Be a Legally Employed Nanny
What Legal Employment Gives You
- W-2 employment status (not a 1099)
- Taxes withheld from each paycheck: Social Security, Medicare, and income taxes
- Unemployment insurance—if you’re let go (not for cause), you can collect unemployment pay
- Access to Social Security and Medicare for your future
- Clear record of employment for credit, loans, rentals, and health coverage
- Trying to skip these steps? It’s not worth it. Misclassifying a nanny as an independent contractor is illegal, even if they’re part-time or paid in cash.
Trying to avoid “the paperwork”?
It’s not worth it. Cash pay or “off the books” jobs might sound easy, but you miss out on protections and rights you deserve.
💡 “But my job is only a few hours a week.”
If you meet the yearly pay threshold, the law applies to you—period.
Risks of Accepting Cash or Off-the-Books Jobs
No unemployment benefits—if you’re laid off, there’s no safety net
No Social Security or Medicare—no credits for retirement or future health care
No proof of income—which means no loans, rentals, or healthcare subsidies
No legal protection for paid leave, workplace injuries, or disability
Potential tax penalties if you or the family are audited
The Upside of Being Paid Legally
- Unemployment pay if you lose your job (as many did during the pandemic)
- Eligibility for state-mandated benefits like sick leave or paid time off
- Proof of income for everything from car loans to renting an apartment
- Credit for Social Security and Medicare (future security)
- Professional reputation—it’s easier to show your experience and references
What You Gain By Paying Legally
- Unemployment insurance if they’re laid off
- Access to Social Security and Medicare benefits for your caregiver
- Clear financial history for credit cards, loans, and insurance
- More confidence and professionalism in your relationship
Honest Care Nanny’s Take
We know legal pay can seem complicated, or even intimidating. But at Honest Care Nanny, we’re here to make it clear, simple, and fair for everyone.
At Honest Care Nanny, we:
- Educate both parties on legal employment
- Help families set up compliant payroll systems
- Encourage nannies to advocate for their rights
- Share tools, checklists, and resources so everyone knows what to expect
When you stand up for legal pay, you’re investing in yourself, and the families who value you.
Sources & Further Reading
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