How to Set Up a Nanny Agency
Nanny agencies have come in demand since mothers and fathers have had to work outside the home to create a livable household income. Starting your own nanny agency means starting your own business, and the process requires time and dedication. The rewards to families is worth the work, but the process can be tedious for the most patient individuals. A successful nanny agency can be created with a dedicated individual's time, attention to detail, and desire to serve local families with quality in home child care.
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Things You'll Need
- Local and federal tax office contact information
- Nannies seeking employment
- Advertising outlets
Instructions
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Investigating Legal Responsibilities
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Contact the federal government, as well as the state government, to inquire about paying taxes on your business. Depending on the type of business, you will need to pay federal taxes quarterly or yearly. State tax payments will depend on state tax laws.
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Decide the type of structure (sole proprietorship, partnership, corporations) of your business. Corporations exchange money, property, or both for stock shares. Sole proprietorship operates with one owner, and partnerships have two or more owners.
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Apply for an Employer Identification Number, or EIN, through the federal government. This number will be necessary when you gain employees, and the number will be required on future tax returns.
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Create accounting records to track payments, hiring and releasing of employees, and records of all financial transactions. Attach receipts to records of transactions for tax purposes.
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Purchase business insurance, unemployment insurance, and workman's compensation insurance. Companies who skip this step lose thousands of dollars to employee injuries yearly.
Creating a Nanny Payroll
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Create a payroll contract for employer and nanny to sign. This contract should state hourly rates, hours worked, pay rates and which day is payday. The contract should also specifically state the frequency of pay. Is the frequency biweekly, weekly, or another time increment?
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Outline payroll deductions in detail. Federal and state taxes need to be deducted, such as Social Security and Medicare taxes. Ask the employee to fill out a federal W-4 and I-9 form for tax deductions.
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Arrange time cards for nannies to fill out and hand in on a predetermined, regular basis, signed by both nanny and family. Keep a copy of the nanny time cards for accounting and payroll purposes.
Advertising and Marketing
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Advertise for nannies. After an applicant has been chosen, run criminal and abuse background checks. Check credentials, such as first aid and CPR, and call references. Establish a solid base of nannies ready to work with children.
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Utilize advertising mediums such as fliers, local grocery store pin-up boards, and the Internet to advertise your new business. Other areas of advertising interest are radio and television spots.
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Build a reputation with exceptional nannies and quick response to parent complaints. Word of mouth reputation will grow or ruin a business, so keep your interactions professional and your nannies current on trainings and child-rearing concepts.
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References
Resources
- Photo Credit Ich halt dich fest image by CMS from Fotolia.com
