1. Cost Sharing: One of the primary advantages of a nanny share is the cost-sharing aspect. Families can reduce their cost of hiring a nanny, making quality childcare more affordable for each family. It’s typical for each family to pay two-thirds of the normal rate, so that the families save money and the nanny earns more money, a win for everyone.

   TIP #1 for paying your nanny in a share correctly: Each family is a separate employer per the IRS, responsible for withholding and paying payroll taxes on their share of the wages paid to the employee, and thus need their own separate payroll account. Many families who have a nanny share split the hourly rate when they pay, but this can sometimes fall under minimum wage. Make sure your paystubs comply with all labor laws including minimum wage and overtime.

   TIP #2 Use alternative rates when needed: Sometimes nanny shares pay an alternative rate to the normal rate. For example, maybe your nanny share is to take care of your toddler, but you’ve also negotiated that on school holidays your nanny will include your 3rd grader. If you need to pay for regular hours and alternate rate hours, Nest Payroll makes this easy.

2. Social Interaction: Nanny shares provide built-in socialization for children. They get the opportunity to interact, play, and learn with another child, fostering social skills and friendships.

3. Flexible Scheduling: Families in a nanny share can often negotiate flexible schedules that accommodate both households' needs. This flexibility can be especially helpful for parents with variable work hours, not to mention the relief from daycare centers with strict pick-up times.

4. Individualized Attention: While the children share the caregiver, the small group size allows for more individualized attention compared to larger childcare settings. This can be particularly advantageous for children's development.

5. Shared Responsibilities: Families can share certain responsibilities, such as providing snacks or supplies, making it easier for everyone involved.

6. Convenience: With a nanny share, parents may not need to transport their children to a separate childcare facility, saving time and reducing logistical challenges.

7. Comfort and Familiarity: Children often feel more comfortable and secure in a home environment. In a nanny share, they remain in a familiar setting, which can contribute to a sense of security and well-being.

8. Experienced and qualified: Nannies in nanny shares should earn a higher rate than if they were caring for a single family. This can attract experienced and qualified caregivers to the arrangement.

9. Cultural Exchange: If families are from different cultural backgrounds, a nanny share can expose children to diverse experiences, languages, and traditions.

10. Reduced Turnover: Nannies in share arrangements may experience more stable employment, leading to lower turnover. This stability is beneficial for the children's continuity of care.

When considering a nanny share, clear communication, a shared understanding of expectations, and a well-drafted agreement between the families are crucial to ensuring a successful and harmonious arrangement.