this is in the link posted above- if a person is caring for more than one family, they need to be licensed in your state. So essentially you need to register your home as a daycare with the state, and the nanny as the provider. The tax implications are complicated as well, I know a family going through a NIGHTMARE with workers comp because they weren't paying the nanny, the other family was and they were reimbursing them for hours, etc.

What Types of Providers Are License Exempt?

Many child care providers are license-exempt,
including:
• A provider who cares only for his/her
relatives,
• A provider who only cares for the
children of one other family (other than
the provider’s own children, if he or she
has any children),
• Cooperative agreements (Co-ops) in
which parents share responsibility for
child care. See Question 9.
• Public recreation programs.
• Before- and after-school programs run by
schools.
• Other categories of license exempt
programs can be found in Health a

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