So you decided to hire a nanny and have gone through an agency, an online listing (having considered all the downsides of this option in my last blog), posted your own listing, or got a referral from your best friend’s nanny.

Interviewing Nannies

When you interview a nanny, you want to find out a number of things:

• Is she responsible and will she be reliable?
• Will she listen to my directions or does she have her own strong opinions of child rearing?
• Is she loving?
• Does she consider yelling or spanking appropriate methods of child rearing?
• Will she be creative or will she spend the entire day in front of TV or DVD’s?
• Will she be calm in case of an emergency and know what to do?
• Will she run her own errands or will she spend the entire day texting her friends?
• Does she know developmental milestones and be able to stimulate my child?

The interview is critical to your comfort and sense of security for months or years to come, so do not simply go through a resume (many won’t even have a resume), and ask general questions about life goals.  You need clear answers.

These are some guidelines to get at the answers that you need to know before you evaluate a nanny candidate:

1. Don’t ask “yes” and “no” questions.  You want to ask open-ended questions to get the candidate talking about her childcare experience.
   1. Have you taken care of a child the same age as mine? What kinds of activities you did with a child that age?  What did you do on rainy days?  How did you handle her crying when her mom and dad went off to work?
   2. Under what circumstances would you feel it justified to raise your voice or to spank my child?
   3. What would you do if my two children were fighting over a toy?
   4. If my daughter developed a fever in the middle of the day, what would you do?

1. Don’t ask questions that make it clear what you expect the answers to be.
   1. Will you call me when you’re stuck in traffic and will be late?
   2. Will you give my child sugary snacks if I ask you not to?
   3. Are you a reliable person?

1. Ask questions to find out the nanny’s childcare philosophy.
   1. Tell me about a time when you were caring for children who just wouldn’t settle down for bed.  What did you do?
   2. What would you do if my son had a temper tantrum because you wouldn’t buy a sugary cereal at the grocery store?
   3. What would you do if you disagreed with me about an issue regarding my children?  For example, what if my child won’t eat the lunch I asked you to prepare for him?  What if you do not want to actively play outdoors in the wintertime, as I have asked?

Getting References for Your Nanny

Speaking to the nanny’s past work and nanny references is the most valuable indicator of how reliable, responsible, creative and loving she will be with you. Be prepared with a list of questions for the reference beyond “Did you like her?”

Reliability:

• How many times did she call in sick in the time she was with you?  Did she ever call at the last minute, leaving you in the lurch?

Responsibility

• Were you aware of her own vacation schedule far enough in advance so you could get a substitute?  Did she give you a summary of the day’s events?  Give you accurate telephone messages?  Always answer the phone when you called?

Loving/Creative/Sense of Humor

• Did your children look forward to her coming?  Did you find evidence of what they did during the day (drawings, art projects, home baked cookies?).  Did she come and go with a smile on her face, with a cute anecdote about the day?

Sometimes references are worried about liability and do not want to talk about the nanny.  This is hard – your have to figure out if the reason is because the experience was negative or if the reference is just following a “no talk” policy.  Ask a reluctant reference just this one question:  “I am a mom (or dad) hiring a nanny for my baby.  She won’t be supervised during the day.  It’s a lot of responsibility.  Should I be thrilled to have this person in this role, or should I use caution?”

The Nanny Work Agreement

Once you decide to hire a nanny, write up a simple work agreement that you both sign so that the responsibilities are clear.  Don’t make it a “legal” document with legalese language. Make it short, sweet and to the point. This work agreement helps both of you.- to remind you about the household chores or the schedule that you two agreed on.  Sometimes parents begin to pile on new jobs once the nanny is hired.  Sometimes nannies decide to ignore the laundry which was part of the agreement.  It’s a great reference point.  Note:  a nanny is hired to care for your child.  Don’t make the mistake of giving the nanny so many household chores that it detract from the nanny/child interaction.  Most full-time nannies care for the child and the child’s room, laundry, and meals (including clean up).  If the nanny is asked to do more, and she agrees, be prepared to pay more (ironing, the family laundry, dinner prep, etc.).  You can find some sample work agreements on the International Nanny Association website.

Your responsibilities as an employer

The following information is from Breedlove and Associates, my favorite payroll and “nanny tax” service: http://www.mybreedlove.com. A household employer is defined as someone who pays an individual to perform duties in or around their home. Household employees include nannies, housekeepers, personal assistants, household managers, etc.  If a family pays a household employee $1,700 (2011) or more in a calendar year, they are required to meet the “nanny tax” obligations as well adhere to local, state and federal employment laws. Don’t worry, these obligations are not nearly as onerous or as expensive as most people think.

If a family pays an employee less than the $1,700 threshold, the family is absolved of the “nanny tax” obligations, but they are still considered an employer and must adhere to local, state and federal employment laws.

The Household Employer’s Legal Responsibilities

Minimum Wage. Household employees must be paid at a rate that meets or exceeds the Federal Minimum Wage standards — currently $7.25 per hour. 

Mileage Reimbursement. Employees who are asked to use their own car while on the job should be reimbursed at a rate of 55.5 cents per mile (effective July 1, 2011).  Commutes to and from work each day are not considered “on the job” and, therefore, employers are not responsible for any reimbursement on those miles.  If money is paid to the employee to defray the cost of commuting to and from work each day, it is considered taxable income and should be reported as part of the employee’s compensation.

Overtime. Household employees are classified as “non-exempt” workers, and federal overtime law dictates that non-exempt workers must be paid overtime if they work more than 40 hours in a 7-day work week. Overtime is calculated at a rate of 1.5 times the regular rate of pay. Exception for Live-In Employees: Families are not required to pay live-in nannies at the overtime rate, but they must pay the nanny for every hour worked. It is legal to pay your employee a salary and have the overtime hours included in the compensation. To accomplish this, you must have a written employment agreement that explicitly details the regular rate of pay and the overtime rate of pay.

Paid Time Off for Vacations/Illnesses/Holidays. Household employers are not required by law to provide paid vacation, sick days or holidays. While these perks are an effective way to attract and retain good nannies, most household employers are not legally obligated to offer them.

Legal Work Status. According to the law, employers are required to verify that workers are legally permitted to work in the United States. Specifically, the government asks each employer to utilize Form I-9, which verifies the identity and employment eligibility of all citizens and foreign nationals.

Workers’ Compensation. Employers in some states are required to carry a Workers’ Compensation policy on household employees. Workers’ Compensation is not a tax; it’s an insurance policy that helps cover lost wages and medical expenses due to injury or illness resulting from the workplace. Check with your homeowner’s insurance carrier to see if it is included as part of your umbrella homeowner’s policy. If you’re not already covered, you can usually add a rider to your policy.

The Household Employer’s Tax Responsibilities

Household employers can expect to PAY employer payroll taxes of approximately 9-11% of their employee’s gross wages (Good News! Tax breaks can save you as much or more than the taxes). Specifically, the employer taxes are:

• The employer’s half of Social Security & Medicare (“FICA”). The rate is 7.65% of employee’s gross wages.
• State Unemployment Tax Assessment (“SUTA”). The rate varies by state.
• Federal Unemployment Tax Assessment (“FUTA”). The rate is 0.8% of first $7,000 of employee’s gross wages and, therefore, caps at $56/year.
• Other state taxes (many states have a small additional tax in order to fund initiatives such as workforce development/training)

Household employers are required to WITHHOLD taxes from their employee’s paycheck. Specifically, those taxes are:

• The employee’s half of FICA (7.65% of gross wages). In 2011, employee FICA taxes are reduced to 5.65%.
• Federal Income Tax (withholding rate based on allowances chosen by employee on Form W-4)
• State Income Tax (withholding rate based on allowances chosen by employee on state Form W-4)
• Other state taxes (some states levy additional taxes to pay for things like Disability Insurance)

The Compliance Checklist

• Register for federal and state tax accounts
• Complete and file New Hire Report
• Calculate the correct amount of federal and state taxes to withhold each pay period
• Track gross pay, net pay, federal taxes withheld and state taxes withheld
• Prepare state tax returns and remit both the employer and employee taxes quarterly
• Prepare federal tax estimates four times per year and remit both the employer and employee taxes
• Prepare year-end summaries to state tax agencies
• Prepare Form W-2 and distribute to your employee (and any former employees who had wages during that calendar year)
• Prepare Form W-3 and send to the Social Security Administration (along with Form W-2 Copy A)
• Prepare Schedule H to accompany your personal federal income tax return
• Respond to IRS and state requests/inquiries
• Monitor ever-changing household employment tax law

First time parents often get confused over the options for childcare when they are re-entering the workforce and is an especially daunting task when the baby is under 2 years old.

Family day care is an arrangement when one caregiver takes care of a number of children in her own home.  Family day care is a popular option – and for very good reasons.

• Children receive more personalized care if the setting is small.
• The best family day care settings have a daily schedule that includes active play, quiet time, arts and crafts, outdoor time.  A schedule will helps children feel more secure.  They thrive on predictability.
• The home setting, warm and inviting, gives your child an experience not unlike being at your home.
• Your child may be able to stay in this one home for several years.  Continuity of caregiver is very important to a child’s sense of trust in the world.
• You may find a home close to your own home.  Don’t underestimate this convenience on a cold, snowy day!
• Many family day care homes are less rigid if you call to say you’re detained and will come home late.
• Fees are often less than they are for quality day care centers.

Almost three-quarters of states require licensing for bringing in 1-6 children (with one caregiver) and up to 12 with a second caregiver into a family day care home.  Each state has its own regulations and procedures: in Massachusetts, for example, there can be only three infants for one caregiver (and one of the three infants must be at least 15 months old and walking.);  there can be up to 6 multi-age children to one caregiver in a home.

Some states have a rating system according to how well the caregiver and home meets the requirements (Oklahoma) while others (Wisconsin) have a dual regulatory system:  licensing and certification.

So what can be bad about family day care?  First, beware! Because of the small number of regulators/licensors in each state and the large number of homes, many family day care homes have not gone through the process of becoming licensed.  Licensure does not guarantee a great program, but at the very least (and you want more than the very least!) a licensed home has met minimal safety requirements and the caregiver has the minimum child development credentials.

Before you sign up your child for family day care, you need to check on several things:

• What is the caregiver’s education and experience?  Research bears out that there is a very close connection between education/training and quality service.
• Does the caregiver have a backup plan if she is called out of town?  (Note: It is my opinion that the best family day care homes have two adults for a greater part of the day.  First, these homes may take in more children, and if run well, have more of an opportunity for socializing and grouping by age for certain activities.  Second, it’s a long day with a houseful of children.  I think that if a caregiver can take a break for a while, everyone is better off).
• Look around.  Are the toys clean and in good repair?  Are they developmentally appropriate?  Do little ones have access to the small pieces of toys belonging to the big kids?  Is there a comfortable quiet corner where a “slow to warm up” child can sit and watch the group until she is ready to join?  Are there books?  Is there music?  Is the TV on all the time, whether or not the kids are watching it?
• Here are just a few more things you can ask.  There are not right or wrong answers here, just answers that make you comfortable and are consistent with your own child rearing philosophy:

• How do you discipline the children?  What do you consider an infraction that requires discipline?
• What snacks do you serve?
• Does anybody smoke in this house? Are there pets?
• May I see your daily schedule?
• Can you give me three references of parents whose children have been here over the past 1-2 years?
• At what age do you recommend that the children transfer to another program?
• What are the ages of the other children?  How many more do you plan to recruit?
• What if …
  • I pick up my daughter ½ hr. late?
  • My daughter is sick.  Do I still have to pay for the day?
  • You are sick and have no backup?  Do I still have to pay?
  • A child is found to have lice?
  • My child is near the toilet training stage?  How do you handle that?
  • I need to go away for a weekend.  Can you take care of her outside of family day care hours?

I must now admit my prejudice.  My son went to a family day care home from the time he was 15 months old, until he graduated at 3yr..  I cannot imagine a more wonderful program than that which Joanne provided the children.  I still see the other families – 27 years later!  My only regret is that she didn’t keep him until college.

Next week, I will talk about nannies in your home – a topic I know a bit about, having placed them as a business for the past 27 years.  Stay tuned!

This is the first entry of my childcare blog. It is my intention to talk about kids, how they grow, what they need, and what we, as parents and caregivers, can do to key into their in-born talents and growth. As the owner of an in-home childcare placement agency for 27 years; a mother for 30 years, a graduate fellow of the amazing Zero to Three Foundation, I have watched three generations of parents and children interact. I am here to give you the success stories, and the keys to learn why they were successful.

When I began this childcare journey, before I recruited, trained and placed over 10,000 caregivers, I related most to the caregivers: what it’s like to be a stranger in a home, given the responsibility to help raise a child. I formulated a whole theory about the teamwork approach to caregiving, making certain the daily routines and desires of the parents were continued through our caregivers.

The agency grew, my son grew, and suddenly I was thinking like a parent – not like a nanny or caregiver. I watched in fascination the different temperaments of my friends’ children and their parents’ efforts and sometime struggles to understand them. At this stage of my development, I began programs to help parents and laid out clearer guidelines about how to employ and keep their nannies as household employees.

Here I am now, hiring college students or graduates who we took care of when they were toddlers. The seasons go ‘round and ‘round.

So sit back and enjoy my musings, my opinions, my surprises as I watch the new generation (they’re called Millennials) start their journey in childcare. Some information doesn’t change. Toilet training has not been radically altered by time. But some things do change, like women’s roles in the workplace, which informs us of changes needed in the childcare arena.

I look forward to speaking to you through this medium, and hearing from you, too.