6 Best Nanny Payroll Services 2023

While SurePayroll doesn’t help get your federal employer identification number (EIN), it efficiently handles the rest of your payroll needs. It calculates nanny pay with withholdings and benefits and pays household employees via direct deposits. If you hire a new nanny, it handles state new hire reporting for you. It also offers compliance resources and guides to help you stay on the right side of the law.

Like Paychex and HomeWork Solutions, SurePayroll offers access to employee benefits plans you can provide to your staff. It also supports deductions for Medicare, Social Security, and unemployment state insurance in all 50 states.

SurePayroll is a better option than HomePay for nanny payroll services because it automatically withholds, pays, and files taxes on the federal, state, and local levels. This includes local filing for Ohio and Pennsylvania, which HomePay does not offer. SurePayroll also offers quarterly and year-end tax filings for free, while HomePay and other services charge extra for these services.

It works seamlessly with QuickBooks Online, Xero, Intacct, AccountEdge, Less Accounting, Zoho Books, and Sage 50-US Edition.

Paychex makes it easy to run payroll with just two clicks from your desktop or mobile device. You can pay your employees via direct deposit or live check, and Paychex even offers check-signing services. Paychex also supports multiple pay schedules, which is not always the case with other providers like HomeWork Solutions and HomePay.

Paychex (like all the nanny payroll services we reviewed, except SurePayroll) can help you set up your tax accounts and file taxes for your household employees. It can do this in all 50 states and for local areas. However, it does charge for some of its payroll tax services.

Paychex stands out from other nanny payroll service providers on our list by offering a wider range of features. In addition to basic tasks like new hire reporting and PTO tracking, Paychex also allows you to offer health plans and other benefits for your employees, purchase workers’ compensation insurance, and integrate time tracking into its platform. These features are not included in the base price of Paychex, but it may be worth the investment if you have multiple full-time household employees.

Paychex and SurePayroll are the only nanny payroll services in this guide that offer free mobile apps for household employees. These apps allow employees to access their payslips, update their personal information, and more. HomePay does not offer a mobile app, but it does have a mobile time tracker solution.

Paychex offers a team of compliance experts and payroll specialists who can provide knowledgeable advice on tax and labor regulations. It is the only provider on this list that also offers consultation service, a dedicated representative, and 24/7 customer and technical support via phone and chat.

QuickBooks Payroll uses a variety of factors to calculate the amount of taxes that need to be withheld from an employee’s paycheck, including the employee’s filing status, number of allowances, and pay frequency. QuickBooks Payroll also takes into account the current tax laws, so you can be sure that you are withholding the correct amount of taxes.

In addition to withholding taxes, QuickBooks Payroll also calculates and remits the employer’s share of payroll taxes. This includes Social Security and Medicare taxes, as well as federal and state unemployment taxes.

QuickBooks Payroll is the only payroll service on this list that offers live support. When you enroll in the Elite plan and do not try the 30-day free trial, you can get the one-time live setup support within the first 30 days after you sign up. A QuickBooks expert will guide you through the entire setup process, including setting up automations, connecting your bank accounts and credit cards, and learning best practices. If you encounter any problems after that, QuickBooks has 24/7 live chat support.

QuickBooks Payroll offers a wide range of reports, including payroll billing summary, payroll deductions and contributions, payroll tax liability, total pay, workers’ compensation, and more. You have the flexibility to customize these reports by adding or removing columns according to your preferences before generating them. Additionally, you can mark any report as a favorite for easy access with just a single click in the future. Moreover, you have the option to export the reports to Microsoft Excel or directly print them as needed.

Poppins’ FAQs section is well-organized and easy to use, and it is regularly updated with new questions and answers. It is a valuable resource for users as it can help them find the information they need without having to contact customer support.

Poppins Payroll and HomePay are the two providers on this list that have this feature. However, Poppins has a wide range of sample nanny contracts to offer. These can be customized to fit the specific needs of each household. The contracts cover a variety of topics, including hours of work, pay, benefits, and termination. These are a valuable resource for users, as it can help them create a contract that is fair to both the nanny and the household.

Poppins Payroll has a secure online library that stores all of your tax and payroll documents. This includes your nanny’s W-4 form, your payroll reports, and your tax filings. The library is accessible to you at any time, from anywhere. It also keeps your data for five years, allowing you to access and print them when needed.

HomePay will only require your nanny’s email address to set up an online profile in its system. The provider will even collect the household employee’s personal information, W-4 withholding elections, and bank account information for you. Aside from HomePay, only Paychex offers this level of onboarding support.

HomePay calculates and facilitates employee payments automatically through direct deposit or manual paycheck. If you want to monitor your household staff’s attendance, HomePay has a mobile time-tracker app. The other nanny payroll service providers we reviewed lack time tracker apps (except Paychex, but it costs extra), although SurePayroll can integrate with time clock software.

It will also calculate and withhold applicable taxes or payments that need to be made for each pay period. However, unlike the other nanny payroll services on our list, HomePay handles federal and state taxes only.

Aside from new hire reporting, HomePay tracks PTO accruals and reimbursements. HomePay will also maintain general nanny information and payroll record-keeping for you.

HomePay’s self-service portal allows your household staff to view their payroll records and pay stubs online. You are also granted lifetime access to payroll and tax records.

Similar to the other providers in this guide, HomePay offers a service accuracy guarantee where it will handle any incurred tax penalties for mistakes its representatives make. On top of that, its “happiness” guarantee reimburses clients who are unsatisfied with HomePay’s quality of service within their first six months. None of the other providers on our list offer this.

HomePay’s connection with Care.com enables you to access its network of caregivers, tutors, nannies, and other household staff. It also provides online tools to help you find and hire household employees.

With HomePay, you can reach its customer support via phone, chat, or email on weekdays.

HomeWork Solutions has both a do-it-yourself (Essential) plan and a full-service (Complete) payroll package. The Essential plan provides you the option to outsource payroll tax calculation and form preparation, including tax payments and filings, and simply handle nanny salary payouts yourself. Meanwhile, its Complete payroll package lets you choose between weekly and biweekly pay runs and includes payroll and tax calculations and tax payment and filing services.

Like SurePayroll and Paychex, HomeWork Solutions offers automatic payroll tools. If you prefer to handle payments yourself, it can send you the calculated net payroll (less taxes and other deductions) so that you can pay your nanny directly. It can also pay your household staff via direct deposits and checks mailed to the employee. While Paychex has live check printing capabilities and offers check signing services, it doesn’t mail checks like HomeWork Solutions does.

HomeWork Solutions can help you set up your household employer account with the IRS and relevant state tax authorities. HomePay also offers this service, while Paychex walks you through the process.

HomeWork Solutions automatically files and pays employment taxes at all levels (federal, state, and local). This is unlike HomePay, which does not handle local taxes. For an additional $225, HomeWork Solutions can also calculate back taxes for the previous quarter. This is a service that none of the other providers on our list offer.

HomeWork Solutions ensures employer compliance with state-specific new hire reporting rules. Similar to Paychex, it can connect you with insurance partners to assist with workers’ compensation requirements. Both HomePay and SurePayroll also offer workers’ compensation insurance and other benefits, but charge extra.

Similar to Paychex, HomeWork Solutions has a dedicated payroll representative who can come to your aid whenever you need it. It also provides unlimited “concierge” support that you can reach either online, by email, or by phone from Mondays through Fridays, 8 a.m. to 7 p.m., Eastern time.

Paying your nanny (or other household employees) is different from paying a casual babysitter or neighborhood kid to do your lawn. There are laws around having a domestic worker on your payroll—particularly if you pay them more than $2,400 in wages in a calendar year.

It’s important that you get nanny payroll correct. Partnering with a provider that offers nanny payroll services/software can help you navigate the intricacies of managing payments for household employees. Aside from ensuring that you remain compliant with federal and state laws, these providers have the essential tools to calculate wages and deductions accurately and prepare the required tax forms for filing to the IRS.

Do you want to learn more about paying nanny taxes? Our guide to nanny taxes has all the information you need to know about calculating and paying nanny taxes, including the tax forms that household employers need to submit.

No, nannies cannot be considered independent contractors because the amount of control over their work hours and environment qualifies you as an employer according to the IRS. Thus, you are responsible for tax withholdings, Social Security and, in some states, workers’ compensation.

Beyond the legalities, registering yourself as a household employer and registering your nanny or other household workers as an employee offer some benefits. These include:

• Building your employment history
• Enabling household staff to collect unemployment insurance
• Building your Social Security
• Helping household staff qualify for loans
• Potential tax breaks for household employers under the Dependent Care Assistance Program (DCAP) and the Child and Dependent Care Tax Credit

You need a federal EIN from the IRS. Tax accounts with state and local agencies may also be needed, so it’s best to check the relevant guidelines in your area. In addition to your and your nanny’s name and Social Security numbers, you’ll be asked to provide your email address, the physical address where household staff will provide service, and the phone number associated with the physical address.

It is also important that you get new hire documents from your household staff to help confirm their identity and if they are authorized to work in the United States. Note that you shouldn’t employ workers who are unable to provide these documents. You should also verify the information they provided through E-Verify.

No, you can’t. It is illegal to process payments for your household staff through your business payroll.