Nanny agency fees: what they cost and how to hire without one

Nanny agency fees are what you pay an agency to find and screen a nanny for you. Most agencies charge an upfront engagement or registration fee, then a one-time placement fee when you hire. According to the International Nanny Association, placement fees range widely, from $800 to $8,000 or more.

Nanny agency fees, explained.

That fee pays for someone else's time to find and screen candidates. Many agencies also offer a replacement window if the match doesn't last. Your nanny's pay and the cost of employing them are separate, and that budget runs long after the fee is paid.

So the real question is bigger than one invoice. Below, you'll see what an agency fee buys and what every family pays either way. You'll also see a direct-hire path with no placement fee.

What an agency fee actually pays for.

A traditional agency is a full-service search. Someone else finds candidates and runs the first interviews before you meet anyone.

The fee is how you pay for that work. Once you see how it's built, you can compare agencies line by line.

Engagement fees and placement fees.

An engagement or registration fee is paid upfront to open your search. Agencies usually charge it whether or not you end up hiring.

The placement fee comes due when you hire. Some agencies quote a flat amount, and others tie it to your nanny's salary, so ask which one applies. The International Nanny Association advises that agencies include a provision for placements that don't work out within a set period.

Membership and subscription models.

Some agencies and platforms charge a recurring fee instead of a fee per placement. You pay for access over time, which can suit families with part-time or changing needs.

Gathered Hands works this way. Families pay $29.99 a month for a household membership, free for the first 30 days, month to month, and you can cancel anytime. You can see our flat monthly membership pricing, with a $0 placement fee and $0 commission.

What screening and support are included.

Agencies usually screen candidates with interviews and reference checks, and many add a background check. Many also offer a replacement window if the first placement ends early.

Direct-hire platforms vary. On Gathered Hands, every nanny completes a background check before appearing to families, as described in our safety and screening policy. Background checks have limits and can't guarantee anyone's conduct, so you still interview and call references yourself.

Gathered Hands doesn't employ nannies. You hire your nanny directly, which means the choice and the relationship stay with you.

The costs every family pays, agency or not.

An agency fee is paid once. The costs below keep going for as long as your nanny works for you.

Picture a regular week with your nanny. Each of these shows up in it, whether you hired through an agency or found each other on your own.

Your nanny's hourly rate.

The International Nanny Association's 2022 nanny salary survey found a median of $25 an hour and an average of $27. Those figures are self-reported by nannies who chose to respond, and they reflect 2022 pay.

The U.S. Bureau of Labor Statistics puts the median wage for childcare workers at $16.82 an hour as of May 2025. That category is broader than nannies and includes daycare and after-school staff. Its wage survey also leaves out most household employees.

So $30 an hour sits above the 2022 survey median. Whether it's right for you depends on your city, the nanny's experience, the duties, and how many kids are in their care.

On Gathered Hands, nannies set their own rates and keep 100% of them. You see the rate on a profile before you reach out, and you can read how nannies set rates.

Payroll taxes.

When you pay a nanny, you're a household employer. For 2026, the IRS household employer tax guide says paying one household employee $3,000 or more in cash wages triggers Social Security and Medicare taxes.

You withhold your nanny's 7.65% share and pay a matching 7.65% share of your own. The IRS says federal unemployment tax (FUTA) applies in 2026 once you pay $1,000 or more in any calendar quarter. It's 6% of the first $7,000 you pay each employee a year, and you may owe state unemployment tax too.

Minimum wage and overtime.

Nannies who work in private homes are covered by federal wage law. The U.S. Department of Labor explains that domestic workers under the FLSA must get at least the federal minimum wage.

They also earn time and a half for hours over 40 in a workweek, unless an exemption applies, such as some live-in arrangements. Your state or city may set a higher bar, so check local rules too.

Benefits and paid time off.

Your offer can include paid time off and paid holidays. Some families add a health stipend or reimbursement as well.

None of these come with a fixed amount. They're choices you talk through together, the way you would with any professional you respect.

Everyday extras.

Small costs add up over a month. Think mileage, transit fare, activity fees, and meals on shift.

Agree on these before the first day. A quick note on who pays for what saves an awkward talk on a hard afternoon.

How to budget for a nanny, step by step.

The math is simpler than it looks once you write it down. Use these steps, then swap in your own numbers.

1. Define the hours and duties you need each week.
2. Research local rates, which you can see on nanny profiles.
3. Add payroll taxes, benefits, paid time off, and everyday extras.
4. Add the cost of finding your nanny, whether an agency fee or a monthly membership.

Say you need a nanny 3 days a week for 10 hours a day. At the 2022 INA median of $25, that's 3 × 10 × $25, or $750 a week before taxes. At 30 hours, you stay under the 40-hour overtime line.

Your 2026 employer share of Social Security and Medicare on $750 is about $57 a week. The IRS notes the threshold can change yearly, so check the current figures before you set your budget.

Is a nanny agency worth the fee.

An agency makes sense if you want someone else to run the search. It also helps if a replacement window gives you peace of mind.

Hiring directly makes sense if you want to know the whole person yourself. The money you'd spend on a placement fee can stay in your budget or go toward your nanny's pay. Before you pay any agency, ask these questions:

• Is the engagement fee refundable if you don't hire?
• Is the placement fee flat, or tied to the nanny's salary?
• What screening is included in the fee?
• How long is the replacement window, and what does it cover?
• How long does a typical search take?

If you'd rather choose for yourself, you can hire a nanny directly on Gathered Hands. Browse real profiles and message nannies yourself. There's no placement fee, ever.

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