For full-time placements, INA charges a placement fee of 15% of the nanny’s first-year gross pay

For part-time placements, INA charges a placement fee of 22% of the nanny’s first year gross pay

Connecticut and New York have slightly different overtime pay rules for household employees.

In Connecticut:

• Live-out nannies: Any hours worked beyond 40 per week are considered overtime, and by law, nannies must be compensated at 1.5 times their regular hourly rate for all overtime hours.

• Live-in nannies: Overtime compensation is not required for live-in employees under current state guidelines

In New York:

• Live-out nannies: Any hours worked beyond 40 per week are considered overtime, and by law, nannies must be compensated at 1.5 times their regular hourly rate for all overtime hours.

• Live-in nannies: Any hours worked beyond 44 per week are considered overtime, and by law, nannies must be compensated at 1.5 times their regular hourly rate for all overtime hours.

Families should consult a payroll professional or employment attorney regarding their specific circumstances.

Payroll tax estimates are approximate and may vary based on unemployment insurance rates, payroll providers, workers’ compensation policies, and individual tax situations.

• FUTA/SUTA rates vary

• Rates may change annually

• Local taxes are not included

• For more information about Employer Payroll Obligations in CT, we recommend looking to GTM Payroll’s CT Nanny Taxes and Payroll Guide, linked HERE

• For more information about Employer Payroll Obligations in NY, we recommend looking to GTM Payroll’s NY Nanny Taxes and Payroll Guide, linked HERE

This calculator does not include optional employment costs such as:

• Paid vacation (industry standard is 2 weeks: 1 week at the nanny’s discretion, and 1 week in coordination with your family)

• Paid holidays (industry standard is all major holidays off and paid)

• Sick/personal days (industry standard is 5 sick/personal days per employment year)

• Mileage reimbursement if nanny is using her personal vehicle for work purposes, such as driving your children or running errands for your family (2026 IRS standard mileage reimbursement rate is 72.5 cents per mile)

• Health insurance contributions

• Transportation stipend

• Bonuses

• Workers’ compensation insurance

• Payroll service fees

• Backup care or travel compensation

Guaranteed Hours: Guaranteed hours are an industry-standard practice that provides a nanny with consistent weekly pay for their regularly scheduled hours, even if the family does not need care during portions of that time. In exchange, the nanny guarantees their availability to the family during those agreed-upon hours each week.

For example, if a nanny is guaranteed 45 hours per week and the family only uses 38 hours during a particular week due to travel, grandparents visiting, or schedule changes, the nanny would still be paid for the full 45 guaranteed hours.

Guaranteed hours help create stability, predictability, and long-term retention in professional nanny positions. Because nannies reserve that time exclusively for one family, they are unable to fill unused hours with other employment opportunities on short notice.

Banking hours: Unused guaranteed hours should not be “banked” or saved to use at a later date. Banking hours means attempting to apply unused hours from one week toward additional hours worked in a future week instead of paying overtime when required.

For example, if a nanny works 35 hours one week and 50 hours the next, a family should not “carry over” the 5 unused hours from the first week to avoid paying overtime during the second week.

In most employment settings, overtime is calculated based on the actual hours worked within a single workweek. Banking hours can create wage-and-hour compliance issues and may violate overtime laws.

Professional nanny positions should treat guaranteed hours as guaranteed pay for reserved availability — not as a flexible pool of hours that can be shifted between weeks.