When it comes to setting up a payroll account for a nanny share care arrangement, a few tips can save lots of heartache downline! Here’s 4 Tips to get you started right:
#1 Each family needs to set up their own payroll account to compensate their nanny at 50% of the agreed-on hourly rate to include overtime. This rate must be at least the minimum hourly rate so check your city and county for exact rates. In San Francisco the minimum rate is $12.25, effective July 2016.
#2 The contract should include the hourly rates for those hours when the nanny is caring for both children, i.e. 50% of the agreed on hourly ‘share care rate’ and the hourly rate when a nanny is caring for only one of the children, i.e. the ‘single child-only rate’.
#3 If a nanny is caring for one of the children part of the week in a shared arrangement and part in a non-share care arrangement, e.g. 20 hours as share care and 20 hours as single child, payroll must reflect the different hourly rates for work performed.
#4 Keep in mind that any overtime will be based on the ‘blended’ rate, i.e. if your nanny is working over 9 hours a day then she is paid overtime based on the average of both the share care and the single child only rate. Overtime is to be paid for all hours over 9 / day or 40 hours/week.
My Home Pay is an expert in setting up payroll for share care arrangements. Here's a great article from their blog on the subject: http://www.myhomepay.com/Answers/NannyShare