When hiring a nanny, understanding how much to pay and what benefits to offer is key to attracting and retaining a quality caregiver. Nanny pay in Colorado is based on a number of factors, including the candidate’s experience, education, and areas of expertise, as well as the schedule, duties, and location of the position.
We’re making nanny pay simple by outlining the essential elements of a competitive compensation package, from wages and guaranteed hours to paid time off and sick leave, so you can know what to expect when partnering with a nanny agency in Denver.
- Nanny pay in Colorado: What parents can expect
- Hiring a nanny: Legal pay, guaranteed hours, and payroll basics
- Paid time off, sick leave, and nanny benefits
1) Nanny pay in Colorado: What parents can expect
Nanny pay in Colorado is generally higher than the national average, particularly in metro areas like Denver, Fort Collins, and Colorado Springs, where demand for care and the cost of living are significantly higher. For most families, competitive nanny pay typically falls in the range of $25–$35+ per hour. These figures reflect gross pay and are consistent with what we see across full-time, professional placements in the Colorado area.
However, while averages can be helpful, it’s important to remember that nanny pay should be based on current market conditions rather than statewide estimates. A nanny’s experience, education, and specialized training all affect the rate of pay, as do the number and ages of children and the scope of responsibilities. Roles requiring longer hours, regular flexibility, or non-standard schedules often come with increased compensation.
Ultimately, the goal isn’t just to meet a minimum rate, but to offer competitive compensation that aligns with your family’s needs and the expectations of today’s professional nannies. At ABC Nannies, we recognize that setting pay thoughtfully from the start helps attract stronger candidates and lays the foundation for a stable, long-term working relationship.
2) Hiring a nanny: Legal pay, guaranteed hours, and payroll basics
Hiring a nanny makes you a household employer, which comes with specific legal and financial responsibilities. Understanding how pay should be structured, what benefits are standard, and how payroll works from the start helps families stay compliant and build a professional working relationship.
a) How and when nannies should be paid
Most families in Colorado pay their nanny weekly or bi-weekly, with weekly pay being the most common in the nanny industry. This rate must be based on a clearly defined hourly wage, with overtime calculated correctly for any hours worked over 40 in a workweek. Families should provide clear pay stubs that show hours worked, regular pay, and any overtime, ensuring full transparency and compliance.
b) Guaranteed hours and overtime
Guaranteed hours mean that a nanny is paid for a set number of hours each week when they are available to work their agreed-upon schedule, even if the family does not need care for some or all of those hours.
Unlike a salary, providing guaranteed hours does not eliminate the need to track hours worked or pay overtime. A nanny with guaranteed hours is still paid hourly, and any hours worked over 40 in a workweek must be paid at the overtime rate. If fewer hours are worked due to a family’s schedule changes, the nanny is still paid their guaranteed hours, but overtime is only owed when more than 40 hours are actually worked.
For example, with a 40-hour guaranteed workweek:
- If the nanny works 40 hours, all hours are paid at the regular hourly rate.
- If the nanny works 43 hours, the 3 additional hours are paid at the overtime rate.
- If the nanny works fewer than 40 hours due to a family schedule change, the nanny is still paid for 40 hours.
c) Payroll taxes for nanny employers
When you hire a nanny as a household employee, you are legally responsible for handling payroll taxes. This includes withholding Social Security and Medicare taxes from your nanny’s pay, as well as paying the employer portion of those taxes. Families are also responsible for federal unemployment tax (FUTA) and Colorado state unemployment insurance (SUI), which fund unemployment benefits if a job ends. You are not legally required to withhold federal or Colorado state income taxes, but your nanny may ask you to do so to help spread their tax liability. Altogether, these payroll taxes typically add about 10–12% on top of what you’re paying your nanny and should be factored into your overall childcare budget. In addition, you must register as a household employer, file required quarterly and annual tax forms, and provide your nanny with a W-2 by January 31 each year.
d) Using a payroll service
Because household employment has unique tax and compliance requirements, many families choose to use a payroll service specializing in nanny payroll. Household payroll services take care of the behind-the-scenes employer responsibilities, including calculating pay and overtime, withholding and paying employment taxes, issuing pay stubs, and completing required state and federal filings, so families stay in compliance with Colorado and federal law. Our experienced team regularly guides families toward trusted payroll providers such as HomeWork Solutions, who understand legal nanny pay structures and best practices for household employers.
3) Paid time off, sick leave, and nanny benefits
- Sick leave
In Colorado, nannies are entitled to sick leave under state law, accruing at 1 hour per 30 hours worked. This can be used for illness, medical appointments, or caring for a family member. Your nanny is entitled to use up to 48 hours of sick leave per year, and unused sick time can be rolled over to the next year.
- FAMLI
In addition, nannies may be eligible for FAMLI (Family and Medical Leave Insurance), a state program that provides paid leave. If you have fewer than 10 employees, you are not required to contribute to this program, but must register, collect, and remit your employees’ contributions.
- Paid time off
In Colorado, paid time off (PTO) and holidays are optional but commonplace. Many families offer 2–3 weeks of vacation per year and 6-10 paid holidays such as Thanksgiving, Christmas, and New Year’s Day.
- Benefits
Some families also offer health insurance stipends, professional development reimbursement, or bonuses. While not legally required, providing a clear benefits package alongside competitive pay helps attract experienced candidates and fosters a professional, long-term working relationship.
If you’re hiring a nanny, the experienced team at ABC Nannies helps families navigate every step of the process, from determining competitive pay and structuring payroll to advising on PTO, sick leave, and additional benefits. With our guidance, you can confidently hire a qualified caregiver who meets your family’s needs, while ensuring a smooth, long-term working relationship built on trust and professionalism.
Discover the ABC Nannies difference. With over 30 years of proven success, ABC connects exceptional nannies and household staff with local families who value professionalism, reliability, and top-notch care.
- If you found this article useful, you might also enjoy this: Nanny Benefits: What to Offer.
- If you’re a family looking to hire a nanny, we’d love to help. Complete our Family Application here.
- If you’re a candidate looking for your next position, apply here.
