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In episode #9 of the tutorial series "Working with a Nanny from A to Z," Laura from Nanny Parent Connection discusses the importance of having a nanny contract. A contract outlines the working agreement, preventing misunderstandings between the nanny and the family regarding day-to-day operations. It offers protections for the family to ensure care is delivered as expected and gives the nanny clarity about their role and responsibilities. Additionally, the contract establishes the parameters of the position for both parties. Many families opt to pay nannies under the table and may forgo a contract, but Laura emphasizes the value of formalizing the agreement.