What is the Difference: Nanny vs Babysitter

Setting out to find someone you trust with the care of your child can be overwhelming.  

In 2023, there were approximately 970,800 childcare workers in the United States, according to the Bureau of Labor Statistics (BLS). This group includes nannies who work in private homes as well as childcare workers in other settings, such as daycare centers and preschools.

If you need childcare, one of your first steps is likely to be deciding what type is best for your family. If you’d like your child to be cared for at home, your main options are usually hiring a nanny or arranging for a babysitter.  

Both childcare options offer benefits, but they serve different needs: Nannies typically provide consistent, long-term care, while babysitters offer temporary assistance.

In this article, we’ll explore the differences between these two childcare choices, including responsibilities, costs, and the tax implications related to nanny services and babysitter care.  

Discover how SurePayroll® By Paychex can make it simple to handle nanny paychecks, taxes, and year-end tax forms, so you can focus on what matters most: your family.

Understanding the Roles

There can be some confusion between what is a nanny vs. babysitter. Both nannies and babysitters can care for your children at home, but the way they work is quite different.  

Nannies are usually part of a family’s daily routine; they have regular hours and ongoing responsibilities. Babysitters tend to step in when you need them.

Here's a closer look at both types of care providers.

What is a Nanny?

Nannies are childcare professionals who are hired to care for children regularly. In most cases, they work with families long-term, becoming a consistent and trusted part of the children’s daily lives.

Nannies have been caring for children in homes for centuries, long before childcare centers existed. While the role has evolved, many families still choose a trusted nanny over other options.  

A study by the Center for the Study of Child Care Employment, part of the Institute for Research on Labor and Employment at the University of California, Berkeley, found that 12% of parents with children under age 3 hire nannies, along with 9% of parents with children ages 3–5.

A nanny's responsibilities could include full day-to-day care, from meal preparation and educational activities to transportation to and from school. Many also help with household chores related to the children and create an environment that supports social, emotional, and cognitive growth.

What is a Babysitter?

A babysitter provides temporary care for children, usually for a few hours at a time during evenings or special events.

Their primary role is to keep children safe and cared for while parents are away. That might mean playing games, reading stories, serving simple meals, or guiding them through bedtime routines.

Key Differences Babysitter vs Nanny

Nannies and babysitters both offer value to families. The key to selecting which one you may need is looking at how frequently your children need care and the level of consistency that works best for your family.

Commitment and Consistency

Because nannies usually work full-time or part-time on a regular schedule, they can provide a stable routine for children. That consistency can help build strong, trusting relationships, especially for younger children who thrive on predictability.

Babysitters, by contrast, step in for short-term engagements. Their flexibility is ideal for families who don’t need daily childcare but would like childcare for date nights, appointments, and other short outings.

Scope of Responsibilities

Nannies often take on responsibilities that go well beyond basic supervision. Nanny services might also include planning educational or developmental activities, helping with homework, and handling household tasks related to the children’s care.

Babysitter responsibilities are mainly to supervise children and ensure their safety. A babysitter might engage children in games. They may also handle basic tasks like feeding or putting children to bed.  

Experience and Qualifications

Many nannies complete childcare training and earn certifications in areas such as CPR, first aid, newborn care, and early childhood education. This training can help them provide high-quality care and often can give families added peace of mind.

Some babysitters complete training, too, especially in CPR and first aid. Others develop skills through hands-on practice, such as caring for younger siblings, relatives, or their children.

Financial Considerations

Budget usually plays a big role in most families’ childcare decisions. Along with hourly rates or salaries, it’s worth considering the tax responsibilities that can come with your options.

Cost of Hiring

The U.S. Bureau of Labor Statistics (BLS) notes the national average pay for a full-time nanny ranges between $10.79/hour (or about $22,450/year) and $20.80/hour (or about $43,270/year).  

You might pay a higher rate due to demand or the cost of living in your area.  

If you're hiring a nanny, you can start to estimate your cost by reviewing the minimum wage in your state. Pay varies by location; urban areas typically run higher than rural ones.  

You’ll also need to consider things like preferred experience, qualifications, the age and number of children to be cared for, and any other specific job expectations you may have. Explore nanny costs in more detail in our article.

See how SurePayroll® By Paychex can help you simplify nanny payroll, payroll taxes, and paperwork.

BLS reports that childcare workers, a category that includes babysitters, earned a median of $15.41 per hour. As with nannies, babysitter rates vary by region and experience.

Tax Implications

Families that employ a nanny are usually considered employers by the IRS and must follow relevant employment laws, including paying “nanny taxes.” This means handling proper tax withholding and, in some cases, providing benefits as required by law. You can read more about nanny taxes here.

While not a payroll tax, employers may also be responsible for workers' compensation insurance and health insurance premiums, if offered.  

Babysitting jobs may be considered to be independent contractors, in which case families may not need to manage tax withholding. Still, keeping a simple log of payments can be helpful for your files and clarity with your caregiver.

Making the Right Choice for Your Family

As you weigh the pros and cons of your childcare options, it’s best to consider your family's priorities. Factoring in your needs, schedule, and budget can help you narrow the options and choose with more confidence.

Assessing Your Childcare Needs

Evaluate your childcare requirements based on your work schedule, the ages of your children, and the level of engagement you expect from a caregiver.  

For consistent, full-time care with a focus on educational development, a nanny may be the right choice. For occasional help, a babysitter might be a good fit.

Budgeting for Childcare

Consider not only the upfront costs associated with hiring a nanny or babysitter but also the potential tax implications.  

A nanny will probably involve a higher financial commitment, but their comprehensive care can offer significant value.  

On the other hand, a babysitter's lower cost may better suit families who need temporary, flexible childcare solutions.

Finding the Right Caregiver

Once you know the type of care you’re looking for, the next step is finding the right person to provide it. Taking time to meet candidates to see how they may fit with your family can make a big difference.

Conducting Interviews

Whether you’re hiring a nanny or a babysitter, interviewing candidates thoroughly is an important step. You can use this time to get to know them, not just their qualifications, but also their personality and caregiving style. Consider asking about their experience, how they handle common challenges, and what they enjoy most about working with children.  

Checking references is also a wise step. It’s one way to confirm the choice you’ve made for your family.  

Aligning with Family Values

Beyond gauging a candidate’s skills and experience, interviews are also a chance to see if your philosophies align. Choosing a caregiver who shares your outlook on safety, learning, and play can help create an environment where your children can feel secure, supported, and happy.

Conclusion

Knowing the differences between a nanny and a babysitter can make it easier to choose the option that works best for your family.

Nannies offer consistency, deeper involvement in your child’s daily routine, and often a broader range of responsibilities. Babysitters are a great choice for occasional help, flexible scheduling, and short-term needs.

In the end, the best choice is the one that helps your children feel happy and secure—and gives you the confidence that they’re in good hands.

How SurePayroll Can Help  

Finding the right nanny for your family takes time and care. Managing their payroll shouldn’t add extra stress.  

SurePayroll® By Paychex can make it simple to handle nanny paychecks, taxes, and year-end tax forms, so you can focus on what matters most: your family.

Learn more about how SurePayroll can simplify your household payroll.