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Documents & IP guide

Child Care Agreement Guide

Setting clear expectations between parents and caregivers — hours, responsibilities, discipline, and emergency protocols.

Updated 2026-08-11·5 min read·Reviewed by AG FinTax

A child care agreement is a written contract between parents (or guardians) and a child care provider. It defines the terms of care, including hours, responsibilities, discipline policies, and emergency procedures. It protects both the family and the caregiver.

When you need one

  • Hiring a nanny or babysitter — even if it's someone you trust, written terms prevent misunderstandings.
  • Enrolling in a daycare center — the enrollment agreement is a child care contract.
  • Family care arrangements — when grandparents or relatives provide regular care.
  • Shared custody care — coordinating care between divorced or separated parents.

Key terms

  • Hours and schedule — regular hours, overtime rates, and holiday coverage.
  • Compensation — hourly rate, salary, overtime, and payment schedule.
  • Responsibilities — what's included (feeding, homework help, light housekeeping, transportation) and what's not (deep cleaning, cooking for the whole family).
  • Discipline policy — how behavioral issues are handled. Both sides should agree on acceptable methods.
  • Emergency procedures — who to call, hospital preference, and medical authorization.

Important protections

  • Background check authorization — parents should request (and the provider should consent to) a background check.
  • Liability — clarify who's responsible for injuries or property damage during care.
  • Confidentiality — the provider shouldn't share photos or information about the child on social media.
  • Termination — how either side can end the arrangement (typically 2 weeks' notice).
  • Sick child policy — what happens when the child is too sick for care.
A written agreement isn't a sign of distrust — it's a sign that both sides take the arrangement seriously. It prevents the "I thought you meant..." conversations that damage relationships.

Make it legal

  • Both parties sign.
  • Each party keeps a copy.
  • Attach any addenda (emergency contacts, medical authorization, photo release).

A state-specific child care agreement drafted to your situation takes about ten minutes.

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This guide is general information, not legal, tax, or accounting advice for your specific situation. State rules and fees change. For decisions that matter, review your plan with a licensed professional — AG FinTax's CPAs are available. See our disclaimer.