Choosing a solid nanny payroll service is important for families who don’t want to process payroll on their own. The best nanny payroll services ensure that you are tax compliant on all levels—federal, state, and local. Its features are specifically structured for household employees, including a self-service portal and the ability to file your Schedule H forms.
We evaluated a dozen nanny payroll providers, including free or inexpensive do-it-yourself options, and picked the best seven nanny payroll services that offer the specific features mentioned above.
- Paychex: (Best overall nanny payroll service) Families that need a single point-of-contact to help manage their nanny payroll
- HomePay: Household employers wanting to take a hands-off approach to nanny payroll processing, tax, and HR services
- Patriot Payroll: Low-cost nanny payroll software for families that just need help with payroll and tax calculations
- SurePayroll: Traveling families that need to process penalty-free guaranteed payroll through a mobile device
- HomeWork Solutions: Families that need free HR support
- ADP Run: Households that need a payroll service with a flexible and customizable pricing model
- Savvy Nanny: Parents needing to pay multiple nannies or caregivers
How We Chose the Top 7 Nanny Payroll Services
We compared over a dozen nanny payroll software against features we believe are most important for those hiring household employees. We considered providers that offer flexible, affordable pricing options for the average family, as well as higher-end providers for those wanting a full service. In addition, we looked for payroll and tax features specific to nanny payroll plus attributes that make the service easy to use since household employers don’t usually have much experience with processing payroll.
We were able to narrow our list of a dozen providers down to seven, and Paychex scored the highest. It provides families with an affordable nanny payroll service. It files taxes, pays the nanny, and prepares a Schedule H form, which is used to file household employment taxes. It also has a mobile app that your nanny can access to view pay stubs.
35% of Overall Score
We gave priority to those that offer automatic payroll runs, direct deposit with an option to process paper checks, and access to tax payment and filing, including year-end forms filing (W-2 and Schedule H). We understand that families looking for help with nanny payroll typically need the most help with tax filing, payment, and reports. When it comes to payroll features, HomeWork Solutions topped the ranking among the seven providers with 4.25 out of 5 in our evaluation. This is not surprising since its core service is nanny payroll and has been in the industry longer than the others on the list.
30% of Overall Score
Payroll service and software should be easy to access and set up and have a user-friendly interface. We give full points to those that provide a dedicated representative, as well as employer ID and tax set-up assistance. If the provider has live phone support that resolves issues promptly, it also earns extra points. When it comes to user-friendly features, both Paychex and HomeWork Solutions were given the highest scores. Aside from the usual features to provide the best user experience, both have dedicated representatives that will assist clients at any time.
20% of Overall Score
We looked at the monthly implementation costs, processing costs, and set-up and year-end fees. Preference was given to providers that don’t nickel and dime families and provide the essentials, payroll taxes, and employee paychecks at a reasonable cost. For household employers, pricing is a major consideration; with Patriot, the cheapest among the seven nanny payroll software listed, you’ll get quality service at a very affordable price.
10% of Overall Score
We favor providers that allow employees to do online onboarding, including the ability to offer a self-service portal that nannies can use to see payments made, edit information, and/or print forms. It is also better if the provider has experts that will advise users on compliance issues and can provide workers’ compensation and other benefits for your household employee. Another feature that makes Paychex stand out among its competitors is its HR features that will greatly help household employers manage their employees with ease.
5% of Overall Score
We considered user reviews, including those of our competitors, based on a 5-star scale; any option with an average of 4+ stars is ideal. Also, any software with 1,000+ reviews on any third-party site is preferred. Among the seven nanny payroll software included in the list, Paychex is very popular with users because of its user-friendly platform and responsive support team.
- It offers online and mobile payroll processing
- Payroll funds can be electronically deposited
- Dedicated payroll specialist
- You need to pay for year-end tax report prep and online delivery (W2s and Schedule H)
- Federal taxes for nanny payroll costs extra
- Third-party integration glitches
|RATING CRITERIA||Pricing||5.00||OUT OF||5|
|HR Features||5.00||OUT OF||5|
|Payroll Features||3.50||OUT OF||5|
|Ease of Use||4.75||OUT OF||5|
Among the shortlisted providers, Paychex scored the highest at 4.40 out of 5 in our evaluation. More than the basic payroll and HR features, Paychex provides dedicated payroll specialists along with employment and income verification services to improve your nanny payroll experience. It is also readily accessible online or through its mobile app to ensure fast and efficient payroll delivery. Moreover, Paychex offers new hire reporting, accounting and HR productivity tools, benefits (retirement and health plans) management, and time tracking integrations to help you do more for your nanny.
However, the downside of using Paychex for nanny services is that you have to pay more for federal tax filing, unlike when you use Patriot, SurePayroll, and HomeWork Solutions. Its year-end report filing (W-2s and Schedule H) will also cost you extra. It does, however, come with a self-service portal for your nanny to access pay stubs and personal data. When you need help, you can even call its 24/7 live phone support. Moreover, real-time users praised its intuitive platform and fast payroll delivery. The only concern they raised was that sometimes payroll specialists are unresponsive and there were noticeable glitches with its third-party integrations.
If you want to learn whether or not its payroll functionalities can handle your needs, read our Paychex Flex review.
Since nanny payroll is a unique service, Paychex pricing for this is customized. You’ll need to call its sales team to get a quote. It does, however, offer a month’s free trial for interested employers.
Paychex Standout Features
- Fast and flexible payroll processing features: With just two clicks, Paychex can run unlimited payroll using a desktop computer or mobile devices (for iOS and Android). You can even choose from three different pay entry options, including a grid view for quick data entry. Multiple pay rates and bonuses are also supported by Paychex, just like Patriot.
- Robust tax filing features: Similar to Patriot and HomeWork Solutions, Paychex will help you set up your tax account. It also helps with filing state and local taxes just like ADP Run, but if you want Paychex to process your federal and year-end tax reports it will cost you extra.
- Multiple pay options: Similar to ADP Run, you can pay employees through direct deposits and paper checks. Both providers also offer check signing and printing services.
- Full range of HR and payroll features: In addition to payroll, it has a suite of HR solutions and services, like new hire reporting and onboarding, time and attendance tracking, employee benefits, workers’ compensation, garnishment payment services, business insurance options, and hiring services.
- Online and mobile self-service portal: With Paychex, you can use its People View for free to add your nanny and invite them to log in and complete activities, such as updating their personal information and tax withholding. It also has a free mobile application for both iOS and Android, which is not present with the other providers except for ADP Run.
- Dedicated support: Much like HomeWork Solutions, Paychex has a team of compliance experts and payroll specialists who can provide knowledgeable advice on tax and labor regulations for a fee. If you are on a tight budget, you can instead use its free 24/7 customer service and technical support via phone or chat.
- Sets up federal and state tax accounts
- Tracks PTO accruals and other reimbursements
- Experts on staff for advising on compliance issues
- Lifetime online access to payroll and tax records
- No mobile application
- Doesn’t prepare, file, and remit local taxes
- No accounting integration
- Year-end tax preparation costs extra
|RATING CRITERIA||Pricing||3.50||OUT OF||5|
|HR Features||4.75||OUT OF||5|
|Payroll Features||3.88||OUT OF||5|
|Ease of Use||4.50||OUT OF||5|
Although pricier than the rest of the listed providers, HomePay scored well at 3.88 out of 5 in our evaluation. Aside from its payroll and HR features, HomePay also tracks PTO accruals for you and provides you with lifetime access to payroll records and pay stubs. You can also rely on HomePay for unlimited support for you and your employees by a team of household employee payroll experts.
It also has a no-penalty tax guarantee (Service Accuracy Guarantee) and a reimbursement program (Happiness Guarantee) that assure you of accurate calculations and remittance and excellent service. However, with HomePay, only federal and state taxes are filed, and just like Paychex, you need to pay extra for your year-end tax preparation. It also has very few user reviews, which is why it is rated low on popularity.
To learn more about HomePay and its payroll functionalities, check out our HomePay review.
You’ll pay $59 monthly per employee (billed quarterly) with no setup fees. If you want your year-end tax forms filed, it’s a flat rate of $100.
HomePay Standout Features
- Hassle-free employee setup: Although it is pricier than Patriot and SurePayroll, HomePay, like those providers, has no setup fee. It will only require your nanny’s email address and will collect their personal information, W-4 withholding elections, and even bank account information for you.
- Robust payroll management: HomePay automatically calculates and facilitates employee payment through direct deposit or manual paycheck. It will also calculate and withhold applicable taxes or payments that need to be made for each pay period.
- Flexible tax filing: Just like Savvy Nanny, HomePay will help you set up your tax accounts with the federal and state tax authorities only. It will also keep you updated on federal and state tax return deadlines, and help you prepare and file tax returns. HomePay will also maintain the general record-keeping for you.
- HR features: Aside from new hire reporting, HomePay offers online onboarding. You’ll also be able to track PTO and reimbursements.
- Online self-service portal: Although it does not have a mobile app version like Paychex, Patriot, and ADP Run, HomePay’s self-service portal allows you to have lifetime access to payroll records. You’ll also be able to view employee pay stubs.
- Service Accuracy Guarantee and Happiness Guarantee: The Service Accuracy Guarantee assures clients that incurred tax penalties for every mistake HomePay representatives make will be shouldered by the provider. On the other hand, the Happiness Guarantee is a reimbursement program for clients who are unsatisfied with HomePay’s quality of service within six months. It doesn’t include fees for non-sufficient funds, credit card processing fees, and payroll reversal fees. None of the other providers on our list offer this.
- Unlimited support: With HomePay you can reach its customer support via phone, chat, or email on weekdays.
- Low cost
- Can pay with manual checks or direct deposit
- Comes with a mobile app
- Integrates seamlessly with its accounting software, as well as with QuickBooks
- Doesn’t offer benefits
- Only Full Service, which costs extra, has year-end report prep
- Limited reporting
|RATING CRITERIA||Pricing||5.00||OUT OF||5|
|HR Features||1.75||OUT OF||5|
|Payroll Features||4.13||OUT OF||5|
|Ease of Use||3.25||OUT OF||5|
Among the nanny payroll services on the list, Patriot is the most cost-effective, earning it a 3.84 out of 5 in our evaluation. It offers a full-service payroll and a do-it-yourself option that costs only $10 monthly plus $4 per employee if you choose to file your taxes. It is popular with household employers because both plans offer unlimited payroll runs using any gadget and it also allows different payroll frequencies and customizable hours, money, and deductions. You can also pay your household employee through direct deposit or manual checks.
Using its full-service plan, you can file and pay all federal, state, and local taxes, regardless of location, similar to SurePayroll and HomeWork Solutions. Patriot, like most other providers, offers a penalty-free guarantee. Although it does not do as well as Paychex for HR features, users recorded positive reviews for Patriot, citing ease of use and responsive customer support. It also has budget-friendly plans that will entice any household employer, with a one-month free trial to boot (the same as Paychex).
To see a full breakdown of Patriot from an expert point of view, check out our Patriot review.
Patriot Payroll Pricing
- Basic: $10 monthly plus $4 per employee (payroll only)
- Full Service: $30 monthly plus $4 per employee (payroll and tax compliance)
Patriot Payroll Standout Features
- Free payroll setup: Patriot’s setup is free–most of the other providers offer free set up too with the exception of Homework Solutions and ADP Run. Patriot will simply request information and set up your payroll, or you may use its payroll startup wizard and do it yourself.
- Flexible payroll system: Patriot allows you to run unlimited payroll and pay your employees with different frequencies, even in different locations. You can also use its standard hours and money type or create your own, including employee deductions and contributions, all for free.
- Self-service and full-service plan options: If you are on a budget and would prefer to let Patriot take care of your payroll and then file your employees’ taxes on your own, you can just opt for its Basic plan. However, you need to pay extra to file your 1099s ($20 for up to five employees). If you need more features that will help your business deal with taxes, you should sign up for Full-Service Payroll. You should note, however, that Patriot does not handle Schedule H, unlike HomePay, SurePayroll, HomeWork Solutions, and Savvy Nanny.
- Direct deposit and manual checks: You can pay your nanny via direct deposit. However, the standard processing time is four days (longer than the others on our list). If you want the option to process it as quickly as one day, you can opt to pre-fund your account with Patriot each time payroll is processed—in preparation for the next pay run. If your employee wants to be paid by check, you can handwrite or print checks right from the software, much like HomePay, SurePayroll, and ADP Run users can do.
- Accessible and detailed payroll reports: Patriot lets you view all tax returns, tax deposits, and even your contribution history. You can filter each report by tax year, date of filing, etc., and download or export the data to either a CSV or PDF file.
- Tax Penalty Guarantee: Just like HomePay and SurePayroll, Patriot ensures that your taxes will be calculated and filed on time. Any disputes caused by their representatives’ errors will be resolved and paid for by Patriot.
- Responsive customer service: Similar to Paychex, Patriot has live phone support run by experts. This service is available from 8 a.m. to 8 p.m., Monday to Friday. You can even reach out through email and chat.
- Multiple ways to pay employees
- Transparent pricing
- Tax penalty-free guarantee
- No free state registration or Federal Tax ID setup
- Extra cost to file W2s and Schedule H forms
- No expert advisers on call
|RATING CRITERIA||Pricing||5.00||OUT OF||5|
|HR Features||2.75||OUT OF||5|
|Payroll Features||4.13||OUT OF||5|
|Ease of Use||3.25||OUT OF||5|
Just a few points behind Patriot, SurePayroll is a cloud-based, affordable household employer payroll service that showcases all the features you could need to manage your nanny payroll. Using it, you can process unlimited payroll runs, withhold and pay payroll taxes on the federal, state, and local levels, and pay your nannies using direct deposit or through printing checks. It makes managing your payroll and tax compliance easy. However, it does not take care of your federal tax ID set up, and you need to pay extra to make SurePayroll file your W2s and Schedule H forms.
With a 3.82 out of 5, SurePayroll still has more solid features in our evaluation than other providers in the market. It gives nannies mobile access to their payroll records at half the cost of some outsourced household employer payroll services. It also does new hire reporting and offers a no tax penalty guarantee to ensure accurate tax filing. Real users like how straightforward to navigate SurePayroll’s platform is. The only complaints so far are its over-the-top security verification feature, which requires repeated log ins, and some system glitches.
If you want to check out its payroll and tax compliance functionalities read our SurePayroll review.
SurePayroll’s nanny payroll service costs $49.99 monthly + $10 per employee covering payroll and tax compliance. Compared with Patriot’s four-day direct deposit, SurePayroll has a faster two-day direct deposit processing time.
SurePayroll Standout Features
- Free payroll setup and unlimited payroll run in multiple states: SurePayroll has no setup fees. With little prep work, you can start unlimited pay runs while taxes and benefit premiums are deducted accurately. Its system supports multiple pay rates and bonuses are included.
- Employee benefits: SurePayroll supports employee benefits, including Social Services, Medicare, and Unemployment State Insurance, in all 50 states, similar to Paychex and Patriot.
- Automated tax payment and year-end report filing: Unlike some providers that only automate federal and state payroll taxes (e.g., HomePay and Savvy Nanny), or state and local taxes (e.g., ADP Run), SurePayroll automatically withholds, pays, and files taxes on the federal, state, and local levels for free while keeping you tax compliant. To calculate and file local taxes in Ohio and Pennsylvania, a user needs to pay an additional $9.99/month.
- Robust integrations with third-party software providers: It works seamlessly with the following accounting software: QuickBooks Online, Xero, Intacct, AccountEdge, Less Accounting, Zoho Books, and Sage 50-U.S. Edition.
- Bilingual customer support: Among all the providers shortlisted, only SurePayroll has Spanish-speaking support (in addition to English) available through chat and phone from Monday to Friday from 7 a.m. to 8 p.m. and Saturday from 9 a.m. to 1 p.m. Central time.
- Offers free HR consultation
- Options for direct deposit, live check, and direct payment from the employer
- Nanny payroll expertise
- Multiple plan options
- Employers will pay setup and year-end fees
- Price is for single employee payroll
- Setup time takes five to seven days
|RATING CRITERIA||Pricing||3.25||OUT OF||5|
|HR Features||1.00||OUT OF||5|
|Payroll Features||4.25||OUT OF||5|
|Ease of Use||4.75||OUT OF||5|
HomeWork Solutions (HWS) is an all-in-one payroll and tax compliance solution. Unlike all the other providers, it offers direct payment from the employer, aside from direct deposit and live check emailed to the employee. It also pays your taxes on the federal, state, and local levels. The downside for budget-friendly employers is that HomeWork Solutions has a setup fee and the year-end report also costs extra. Aside from that, both Essential and Complete Payroll plans are for a single employee only.
With 3.66 out of 5 in our evaluation, HomeWork Solutions is similar to Paychex with its dedicated payroll representative. It also offers free HR consultation and provides employer and employee online management. Aside from that, you’ll have unlimited telephone consultations with its in-house tax experts for the latest domestic employment laws and regulations. It doesn’t handle workers’ compensation, but it generates Form 1040 Schedule H and W-2. Although there were few reviews, users commended HWS for its reliability and responsiveness when there are issues. Others admitted that it is quite expensive compared with the other providers and sometimes they cannot get a hold of customer support.
If you want to understand more of its payroll functionalities, including the pros and cons of using it, read our HomeWork Solutions review.
HomeWork Solutions Pricing
- Essential Payroll: $150 per quarter
- Complete Payroll: $200 (Biweekly) or $225 (Weekly) per quarter
- Year-end Tax Filing (1099): $100
HomeWork Solutions Standout Features
- Nanny tax compliance expertise: Similar to SavvyNanny, HomeWork Solutions specializes in providing household employers real solutions for nanny tax compliance, unlike the other providers that service other industries.
- Automated payroll: HomeWork Solutions offers automatic payroll and pays employees with direct deposit, live check mailed to the employee, or a direct payment from the employer.
- Extensive tax filing features: HomeWork Solutions handles employer account set up with the IRS and relevant state tax authorities, which you won’t get with low-cost general payroll software; HomePay is the only other one on our list that offers it. Also, it completes all quarterly employment tax forms, filings, and remittances. It automatically files and pays employment taxes in all 50 states (federal, state, and local) similar to Patriot and SurePayroll.
- Flexible Plans: Just like Patriot, HomeWork Solutions has both a do-it-yourself (Essential) and complete payroll option. With HWS’s complete payroll plan, you can choose between weekly and biweekly payroll frequency. It also includes a dedicated payroll representative, similar to Paychex.
- HR features: Among our evaluated nanny payroll providers, only HomeWork Solutions’ customers get access to free HR consulting to understand and meet employment obligations. It also ensures employer compliance with state-specific new hire reporting rules. HomeWork Solutions, similar to Paychex, Patriot, and ADP Run, can connect users with insurance partners to assist with workers’ compensation requirements. On the other hand, both HomePay and SurePayroll offer in-house workers’ compensation insurance and other benefits (although with extra costs), while Savvy Nanny does not offer such services.
- Dedicated account representative and unlimited concierge support: Just like Paychex, HomeWork Solutions has a dedicated payroll representative to come to your aid whenever you need it. It also has unlimited concierge support that you can reach online, by email, or by phone Mondays through Fridays, from 8 a.m. to 7 p.m. Eastern time.
- Pays your employees via direct deposit and manual check
- New hire reporting
- Mobile application available for iOS and Android
- Only files taxes on the state and local level
- Workers’ compensation costs extra
- Expensive year-end tax preparation
|RATING CRITERIA||Pricing||2.50||OUT OF||5|
|HR Features||4.25||OUT OF||5|
|Payroll Features||4.00||OUT OF||5|
|Ease of Use||3.63||OUT OF||5|
ADP Run is one of the more popular payroll providers on this list. It runs a complete payroll service, complete with tax withholding and filing. Although not the cheapest alternative, ADP Run can coordinate with taxing agencies (state and local) on tax deposits and returns for you. However, unlike all the other providers, ADP Run is not responsible for depositing and filing the federal taxes (Form 1040ES) and Schedule H. It just impounds federal taxes, which you will use to pay it before the deadline. You also need to pay extra for workers’ compensation
With 3.66 out of 5, in our evaluation, ADP Run has a self-service portal that allows you to run payroll anywhere at any time. You can pay employees via direct deposit or print your own check using ADP’s system. Your nanny can also view their pay stub or even pay history for up to three years using the employee portal on mobile. Users also liked that it is easy to use during payroll and it has new hire reporting and employee onboarding features. Others, however, think that the interface is overwhelming and customer support has had a longer turnaround recently.
If you want to learn more about what ADP Run can do for you, read our ADP Run review.
ADP Run Pricing
ADP’s pricing is not published on its website. After reaching out to them, ADP Run gave us a quote for two employees (biweekly payroll) at $40.23. If you are interested in getting its nanny payroll services, you’ll need to call its sales team to get a quote to address your specific requirements.
ADP Run Standout Features
- Secure payroll service: ADP Run allows you to run payroll in real time via online or mobile app, anywhere and anytime. Aside from direct deposit, you can print your own checks or have them delivered to your employees.
- Tax filing: ADP Run supports tax filing in the state and local jurisdictions only. Federal taxes are impounded on each payroll period, meaning ADP deposits the money in a separate account. Before your payment deadline arrives, the impounded money is refunded to you to pay the taxes yourself. This is entirely different from the other providers like SurePayroll and HomeWork Solutions that file and pay all money to the tax agencies directly on your behalf.
- Extensive analytics and reporting: ADP Run has extensive reports and general ledger exports for your accounting system.
- Flexible customer support: If you need any assistance with payroll or HR concerns, ADP Run has 24/7 support through phone or email.
- Direct deposit and manual check capabilities
- Can pay multiple employees for a single fee
- Employee pay stubs are sent to your employee
- Charge error fees
- No employer ID and tax set-up assistance
- No employee portal
|RATING CRITERIA||Pricing||4.50||OUT OF||5|
|HR Features||2.00||OUT OF||5|
|Payroll Features||4.00||OUT OF||5|
|Ease of Use||3.75||OUT OF||5|
As one of the top nanny payroll software, Savvy Nanny Payroll is an affordable, do-it-with-you service. It’s great for paying multiple nannies, because you can run payroll for two at a flat rate of $40 monthly. The service automatically runs your nanny payroll, withholds and deposits payroll taxes on the state and federal levels, and prepares your year-end tax forms for you. You can pay your employees via direct deposit. All these services are available in all 50 states, ideal for households that often travel.
With 3.63 out of 5, in our evaluation, Savvy Nanny is a reliable payroll tool. However, it does not help with employer ID and tax set up and it charges a lot of client error fees. The client error fees are for any inconvenience that you subjected Savvy Nanny such as insufficient funds, or failure to provide a state account number after repeated requests.
With Savvy Nanny, your household employee cannot access employment records or view pay stubs since it doesn’t have an employee self-service portal. Users, however, find it easy to use and implement. They like that it sends out email payroll and tax reminders so that employers won’t miss out on anything, including deadlines.
If you want to better understand its payroll functionalities and if it can or cannot handle your needs, read our Savvy Nanny review.
Savvy Nanny Pricing
With Savvy Nanny Payroll service, you can hire up to two employees at $40 per month and no setup costs.
- Nanny Plan: $40 per month that covers two employees
- Annual Filing Fee: $50
Savvy Nanny Standout Features
- Nanny payroll expertise
- Flexible Payroll Processing: Savvy Nanny processes payroll for any pay schedule and any number of employees. It sends payroll reminders via email. Once processed, you can pay your employees with a paycheck or via direct deposit. Your employees will automatically get their pay stubs from Savvy Nanny.
- Payroll Tax Management: Similar to SurePayroll, Patriot, and HomeWork Solutions Savvy Nanny calculates, withholds, and deposits your local, state, and federal payroll taxes on time. Also, it can generate and file your quarterly and year-end federal and state tax reports plus prepare a W-2 and Schedule H on your behalf. Its penalty-free guarantee helps ensure you aren’t responsible for any errors it makes, similar to what HomePay, Patriot, and SurePayroll offer.
- Customer Support: Savvy Nanny has a team of customer support representatives who are available six days a week from 7 a.m. to 8 p.m. Mondays to Fridays and 9 a.m. to 1 p.m. on Saturdays. They will assist you in completing enrollment, running payroll, and anything involving your payroll taxes and filings. You can also send an email to get a reply within 24 hours if a rep is not available via phone.
Given that most domestic employers have limited knowledge and experience in hiring, paying, and complying with employer tax laws, it is not surprising that many of them get confused and even commit mistakes that can cost them hundreds of dollars in penalties. Nanny payroll requires a level of expertise that makes having a good payroll service essential. Hence, depending on your budget, you should consider a nanny payroll software that will allow you to partially or fully outsource the payroll process or do it yourself with minimal help.
Among the seven providers that ranked high in our evaluation, we found that Paychex offers all of the basic features you would need when paying a nanny. It’s easy to use since the service does everything for you, and the price is reasonable when compared to other nanny payroll services. Sign up today for a 30-day free trial.