The True Cost of Hiring a Nanny in Denver: A Complete Guide for Families 2025
Hiring a nanny is an investment in your child’s development, daily peace of mind, and the smooth running of your household. For Denver families considering private in-home care, understanding the full cost of hiring a nanny is crucial. In this comprehensive guide, we’ll break down every detail: average hourly rates in Denver, hidden employer costs, legal obligations, typical nanny benefits, and why working with a trusted agency like The Natural Nanny Collective can save you time, stress, and unexpected expenses.
Average Hourly Rates for Nannies in Denver
In 2025, Denver nanny rates reflect both the city’s growing cost of living and the professional expectations of top-tier caregivers. As of this year, families can expect to pay:
$25–$28/hr for entry-level nannies with at least 2 years of experience, CPR certification, and a childcare-focused role only
$28–$35/hr for mid-level or specialized care (e.g., bilingual caregivers, household management, or infant care experience)
$35-$50+/hr+ for highly experienced, career nannies or candidates with education in early childhood, special needs training, or advanced certifications
The rate may increase for:
Nannies caring for multiple children
Travel or overnight care
Holiday or last-minute coverage
Live-in positions (though room & board may offset part of the salary)
What You Actually Pay: Beyond the Hourly Rate
Hiring a nanny means becoming a household employer. That includes additional costs beyond the hourly wage:
1. Payroll Taxes (Employer Contributions)
Social Security & Medicare (FICA): 7.65% of the nanny's gross wages
Federal Unemployment Tax (FUTA): Up to 6% on the first $7,000 in wages
State Unemployment Insurance (SUI): Varies by year and employment history
Colorado Paid Family and Medical Leave (FAMLI): 0.45% of wages (employer share in 2025)
2. Workers' Compensation Insurance
Colorado requires household employers to carry workers' comp insurance to protect both you and the nanny in case of workplace injuries. This varies in cost, but can be as little as $300–$500/year, depending on your policy and provider.
3. Payroll Setup and Processing
While you can DIY payroll, most families use a household payroll service (like HomePay, Poppins Payroll, or SurePayroll) to ensure legal compliance. Expect to pay:
$50–$150/month for full-service payroll + tax filing
4. Benefits
Offering benefits not only attracts top talent but shows you’re a fair and respectful employer. Typical benefits include:
Guaranteed Hours (nanny is paid even if not needed)
Paid Time Off (usually 1 week minimum for part-time, 2+ weeks for full-time)
Paid Sick Leave (Colorado law requires this: 1 hour per 30 hours worked)
Paid Holidays (4-10 paid holidays is standard)
Mileage Reimbursement ($0.70/mile in 2025 when using personal vehicle)
Health Insurance Stipend (common for full-time positions: $100-$300/month)
Bonuses or Retention Incentives (often $500–$1,500 annually)
Legal Responsibilities as a Household Employer
When you hire a nanny, you become a legal employer under federal and Colorado law. That means:
Filing for an EIN (Employer Identification Number)
Registering with Colorado Department of Labor
Issuing a W-2 at year-end
Paying employer taxes quarterly
Maintaining accurate payroll records
Following labor laws (minimum wage, breaks, overtime, sick leave, etc.)
Failure to comply can result in back taxes, fines, and even legal action.
Why You Have to Pay Above the Table
While some families consider paying "under the table," this creates legal and financial risks:
Nannies can't access unemployment, Social Security, or disability without reported income
You could face back taxes, IRS penalties, and legal claims
It reduces your ability to claim the Child and Dependent Care Tax Credit or use pre-tax FSA funds
It undermines the profession and creates inequity for caregivers
Agencies like The Natural Nanny Collective require all families to pay legally and ethically.
Why Work With a Nanny Agency in Denver?
While some families try to hire independently, working with a reputable Denver nanny agency like The Natural Nanny Collective offers priceless benefits:
Pre-vetted candidates: Interviewed and assessed by a licensed social worker
Background checks: National criminal, county-level, sex offender registry, SSN trace, and ID verification
Reference checks: We speak directly to past employers
Holistic matching: We specialize in Waldorf, Montessori, RIE, and other natural parenting styles
Contract support: Clear, protective contracts to prevent miscommunication or unexpected costs
Ongoing support: Mediation, backup care options, and long-term relationship support
Final Thoughts: Investing in Your Family’s Future
Hiring a nanny in Denver is not just about finding care—it’s about creating stability, support, and growth for your family. While the upfront and ongoing costs are real, the peace of mind, enrichment, and long-term value are priceless. When you work with The Natural Nanny Collective, you’re not just hiring a caregiver—you’re investing in a safe, thoughtful, and aligned support system for your child’s early years.
Ready to take the next step? Fill out our Family Application to start your search with Denver’s most trusted holistic nanny agency.
Disclaimer: This blog post is provided for informational purposes only and does not constitute legal or tax advice. Please consult with a qualified attorney, CPA, or household employment specialist to ensure compliance with local, state, and federal laws.
