Should you pay your nanny when you’re away on vacation?

You have a trip on the calendar, and your nanny is a big part of why your family’s days run so smoothly. Now you’re wondering whether their paycheck pauses while you’re gone, or if you should pay them anyway.

In most cases, yes, you should keep paying your nanny. If your nanny is ready and available to work, but your family decides to travel without them, the industry standard is to pay their regular guaranteed hours. Federal law doesn’t require pay for hours not worked. For most families the decision comes down to who chooses the time off. If you choose to go away, it seems fair to pay your nanny. When your nanny picks their own vacation week, that time comes from their paid time off (PTO).

Why does vacation pay feel so confusing?

There’s no single federal rule that settles it. The Fair Labor Standards Act (FLSA), the federal wage and hour law, only says you must pay for hours actually worked. States add their own rules on top, and most families have never written a work agreement before hiring a nanny.

So you’re left trying to be fair without overpaying, and hoping to avoid an awkward conversation the week before your flight. It shouldn’t be this confusing to do the right thing for someone who cares for your family.

What are guaranteed hours, and why do they matter here?

Guaranteed hours are a promise to pay your nanny for a set number of hours each week, whether or not you need all of them. Your schedule will change. Grandparents visit, a work trip gets canceled, you book a last-minute beach week. Your nanny’s rent doesn’t change, and they can’t pick up another job on a few days’ notice.

We’ve guided household employers through this since 1993, and we find guaranteed hours are the clearest way to answer the vacation question before it ever comes up. Families who skip them are usually the ones asking “do we have to pay?” right before they leave.

Who chooses the time off makes all the difference

Here’s how we usually help families think about the most common situations:

One note on travel: the hours your nanny spends getting to your destination with your family count as work time (DOL Fact Sheet 79D). A long travel day can push the week past 40 hours.

How much paid time off should a nanny get?

There’s no federal minimum, but a common approach is two weeks of paid vacation plus paid holidays each year. Whatever you choose, write it down.

What’s different for household employers?

This is where general payroll advice misses the mark. Nannies are household employees, and a few rules work differently for families than for businesses. Getting them right protects both your family and your nanny.

• Some states set paid time off minimums for domestic workers. For example, New York’s Domestic Workers’ Bill of Rights gives three paid days of rest each year after one year with the same employer. Check your state before you set your policy.
• Paid sick leave is a separate bucket. In states with paid sick leave laws, sick time is for illness and family health needs.
• Cutting pay can cost more than it saves. If you suddenly drop your nanny below their usual hours, in many states they may qualify for partial unemployment, which can affect your state unemployment account. It can also cost you a nanny your kids love who relies on a certain income each week.
• Vacation pay is still wages. Paid vacation and guaranteed hours go through payroll like any other paycheck, with Social Security and Medicare taxes, and they count toward the household employee wage threshold. For 2026, that threshold is $3,000 (IRS Topic 756; see also Publicación 926 del IRS). It can change each year, so check the IRS site or the HWS blog at the change of year.
• The nanny we interviewed wants guaranteed hours. What is this? A plain-language look at how guaranteed hours work and why nannies ask for them.
• Overtime calculations with holiday or vacation pay How paid time off affects overtime in a week your nanny also works.

How do we set this up the right way?

1. Talk with us. In a free consultation, a real person walks you through your state’s rules and what’s typical for families like yours.
2. Put it in your work agreement. Spell out guaranteed hours, how much paid vacation your nanny gets, paid holidays, notice, and how travel days are paid.
3. We’ll handle it. HomeWork Solutions runs payroll so vacation pay, holiday pay, and travel overtime are calculated correctly, and your taxes are filed on time.

What does it look like when it is done right?

You pack for your trip without a money conversation hanging over you. Your nanny knows exactly what their paycheck will be while you’re gone, and they come back rested instead of worried. Every paycheck is right, your filings are right, and there are no surprises at tax time.

Best of all, you didn’t have to become a payroll expert to get there. You just got to be a great nanny family.

Frequently asked questions

Do I have to pay my nanny if we go on vacation without them?

Federal law doesn’t require pay for hours not worked, but paying guaranteed hours is the industry standard, and your work agreement or state law may require it. Most families pay.

Do I pay overtime when my nanny travels with us?

Generally yes, for live-out nannies who work more than 40 hours in a workweek, including travel time. Federal overtime rules are different for live-in nannies (DOL Fact Sheet 79B), but many states still require it, so check with us first.

Is vacation pay taxed?

Yes. Vacation pay is wages, so the usual payroll taxes apply, just like a regular paycheck.

Go deeper

You hired someone amazing. We’ll handle the rest.

Your nanny takes care of your family. Paying them well, even when you’re away, is one of the best ways to take care of them back. If you’d like help understanding guaranteed hours, what to consider in a PTO policy, or vacation pay that’s handled correctly, talk to a real person at HomeWork Solutions.

Schedule your free consultation or call us at 1-800-626-4829. Household payroll & taxes, handled.