5 Best Nanny Payroll Services 2022

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 preparing your Schedule H forms.

We evaluated a dozen nanny payroll providers, from full-service payroll providers that have nanny services to DIY programs, and picked the best seven nanny payroll services that offer the specific features for paying domestic workers.

• SurePayroll: Best overall nanny payroll service
• Paychex: Best for household employers who want a full-service payroll including benefits
• Nannychex: Best for families hiring temporary help
• HomeWork Payroll: Best for those that only want help with taxes (although it can do full payroll)
• HomePay: Household employers wanting to take a hands-off approach to nanny payroll processing, tax, and HR services

Best Nanny Payroll Services Compared

For more in-depth guidance on deciding what type of payroll software is right for your needs, read our guide on finding the best payroll software.

SurePayroll: Best Overall Nanny Payroll Service

SurePayroll

Overall Score: 4.23 OUT OF 5

What We Like

• Multiple ways to pay employees
• Transparent pricing
• Tax penalty-free guarantee
• Will file your 1040EZ and provide a Schedule H

What's Missing

• No free state registration or Federal Tax ID setup
• No onboarding
• No expert advisers on call

SurePayroll Pricing

• Starting at $49.99/month + $10/employee/month
• No free trial

SurePayroll is a cloud-based, affordable household employer payroll service that showcases all the features you 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 checks. It makes managing your payroll and tax compliance easy. However, it does not take care of your federal tax ID setup.

SurePayroll earned 4.23 out of 5 on our evaluation because it offers the strongest set of payroll features at the best price. 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 liked the SurePayroll platform’s straightforward navigation. SurePayroll also has high user scores, but the biggest complaint is that customer service is difficult to reach.

SurePayroll Pricing

SurePayroll, like Paychex, requires you to call for a quote. However, we found pricing as low as $49.99 per month + $10 per employee, per month. This makes it the cheapest full-service payroll on our list. Tax filing and payments are included, as is its tax preparation guarantee.

SurePayroll Features

• Complete payroll service: While SurePayroll does not help with getting your Federal Identification Number (EIN), it does handle the rest of your payroll needs. It calculates pay with withholdings and benefits and pays employees by direct deposit or check. If you hire a new nanny, it does the necessary new-hire reporting. It offers compliance resources and guides to help you stay on the right side of the law. Unlike Paychex or Homework Solutions, however, it does not have HR experts to answer questions.
• Employee benefits: SurePayroll supports employee benefits, including Social Services, Medicare, and Unemployment State Insurance in all 50 states, similar to Paychex, HomePay, and HomeWork Solutions. (Paychex also offers benefits management.)
• Automated tax payment and year-end report filing: Unlike some providers that only automate federal and state payroll taxes (e.g., HomePay), 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-US 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.

Visit SurePayroll

Paychex: Best for Full-Service Payroll

Paychex

Overall Score: 4.01 OUT OF 5

What We Like

• It offers online and mobile payroll processing
• Payroll funds can be electronically deposited
• Dedicated payroll specialist
• Can get employee benefits (costs extra)

What's Missing

• You need to pay for year-end tax report prep and online delivery (W-2s and Schedule H)
• Federal taxes for nanny payroll costs extra
• Third-party integration glitches

Paychex Pricing

• Custom pricing
• Need to tax filing included in quote (not automatic)
• 1-3 months free with contract

Paychex scored 4.01 out of 5 in our evaluation. As one of the top payroll services for businesses in general, Paychex offers the greatest range of services, with payroll and HR tools, dedicated payroll specialists, and employment and income verification services. 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 household employees.

However, the downside of using Paychex for nanny services is that you have to pay more for federal tax filing, unlike when you use Poppins or SurePayroll. 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. Real-time users praised its intuitive platform but said it was expensive and that customer support needed improvement.

Paychex Pricing

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. A third-party source lists Paychex’s nanny payroll as $39/month + $4/employee/month. If so, this is cheaper than Poppins Payroll, but this price does not include tax filing, which Poppins does. Paychex usually charges a setup fee and may charge extra for benefits and other features, which is why it’s important to call for a quote. It may offer a month’s free trial for interested employers.

Paychex Features

• Fast and flexible payroll processing features: With just two clicks, Paychex can run your payroll using a desktop computer or mobile device (for iOS and Android). Multiple pay rates and bonuses are also supported by Paychex, just like Poppins. Like several of our listed services, you can pay by direct deposit or check.
• Robust tax filing features: Similar to Poppins and HomeWork Solutions, Paychex will help you set up your tax account. It can file taxes in all 50 states and for local areas, but this service is an add-on that they can include in your quote.
• Full range of HR and payroll features: Here is where Paychex stands out. While it does tasks that most of the services on our list do—new hire reporting, onboarding, PTO tracking—it goes beyond that. You can purchase health and other benefits for your employees, integrate time tracking, and purchase workers’ compensation insurance. These, of course, cost extra, but if you have multiple full-time household employees, it may be your best choice.
• Online and mobile self-service portal: Paychex has an emploFyee app so your nanny can complete tasks like updating their personal information and tax withholding. Like Surepayroll, it has a free mobile application for both iOS and Android. None of the others have such an app, although HomePay has a mobile time tracker app.
• Dedicated support: Paychex has a team of compliance experts and payroll specialists who can provide knowledgeable advice on tax and labor regulations for a fee that can be part of the quote. HomePay and Nannychex provide consultation services in their plans. Paychex, like HomeWork Solutions and Nannychex, gives you a dedicated representative. Plus, Paychex has 24/7 customer service and technical support via phone or chat.

Visit Paychex

Nannychex: Best for Temporary Household Employees

Nannychex

Overall Score: 3.94 OUT OF 5

What We Like

• Handles new hire reporting
• Dedicated account specialist
• Helps you set up your EIN

What's Missing

• No self-service portal
• Does not print paper checks
• Charges extra for tax filing

Nannychex Pricing

• $6.25 per check for weekly paychecks
• $12.50 per check for biweekly, semimonthly, and monthly paychecks
• Quarterly filing: $80
• Annual tax preparation: $150

Nannychex is a pay-as-you-go payroll and tax solution for household employees. Because it has no obligation and charges by paycheck rather than month or year, it’s a great choice for households that have a nanny for the short term, like a military family dealing with a deployment. It offers two plans, one with some payroll prep but with filing taxes only, and the other with full payroll including paying your nanny.

It earned 3.94 out of 5 on our rubric, a respectable score. It lost points because it lacks some help features and HR tools found by other payroll services on our list, but we gave it a perfect score in our expert evaluation section because its tools are sufficient for most families.

Nannychex Pricing

Nannychex is unique among the others on our list in that it charges by the paycheck rather than month or even pay run. It also charges separately for tax filing, like HomeWork Solutions and HomePay. There are two plans:

• Taxes only: $125 per quarter, $195 for the year-end tax preparation
• Full-service: $6.25 per check for weekly paychecks, $12.50 per check for biweekly, semimonthly, and monthly paychecks. Quarterly filing costs $80, and annual tax prep is $150 a year

Nannychex Features

• Setup: Nannychex is easy to set up. Once you register, it takes care of securing your EIN and filing new hire reports. Most of the services on our list will assist with this, although SurePayroll and NannyPay do not.
• Payroll: Payroll calculations include overtime, sick leave, vacation, and PTO tracking, and health insurance deductions. It maintains payroll and tax records. With the full-service plan, it can pay your employee via direct deposit. Unlike Paychex (which charges extra) and SurePayroll, it does not pay by check.
• Tax services: Tax services include calculating, filing, and paying quarterly and year-end federal, state, and local taxes and preparing the W-2 and Schedule H for you. It is part of the extra fee for annual tax prep; for this service to be included, consider Poppins and NannyPay.
• Choice: Nannychex stands out because it has a tax-filing-only plan. If you choose this, you still get the payroll preparation tools, but you write the checks while Nannychex handles the taxes.

Visit Nannychex

HomeWork Payroll: Best for Tax Support Only

HomeWork Payroll

Overall Score: 3.82 OUT OF 5

What We Like

• Offers free HR consultation
• Options for direct deposit, live check, and direct payment from the employer
• Nanny payroll expertise
• Multiple plan options

What's Missing

• Employers will pay setup and year-end fees
• Price is for single employee payroll
• Setup time takes five to seven days

HomeWork Payroll Pricing

• Essential Payroll: $150 per quarter
• Complete Payroll—biweekly pay runs: $200 per quarter
• Complete Payroll—weekly pay runs: $225 per quarter
• Additional employees for Complete Payroll: $60 per quarter
• Setup fee: $100
• Year-end fee: $100

HomeWork Solutions (HWS) is an all-in-one payroll and tax compliance solution. Unlike all the other providers, it can pay employees directly with direct deposit or check, or allow you to pay the employee directly. (Paychex and SurePayroll, for example, handle payments themselves, while Poppins lets you pay by check but does not pay with checks itself.) It also pays your taxes on the federal, state, and local levels.

With 3.82 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. 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.

HomeWork Payroll Pricing

Homework Solutions offers two plans. Like Nannychex, it has a plan just for tax preparation and filing. The other plan’s pricing depends on how often you pay your household employees. Regardless, year-end tax filing costs extra.

• Essential Payroll: $150 per quarter
• Complete Payroll: $200 (Biweekly) or $225 (Weekly) per quarter for the first employee; additional employees cost $60 per quarter each
• Year-End Tax Filing (W-2, Schedule H): $100

HomeWork Payroll Features

• Automated payroll: Like several payroll services on our list, HomeWork Solutions offers automatic payroll and pays employees with direct deposit or by check mailed to the employee. It can also send you the information so you can pay your nanny directly.
• Extensive tax filing features: HomeWork Solutions handles employer account setup with the IRS and relevant state tax authorities. (Poppins, HomePay, and Nannychex do this, while Paychex can walk you through the process.) 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). Poppins, our No. 2 best, only works in 14 states, while HomePay does not handle local taxes.
• Flexible Plans: 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: HWS ensures employer compliance with state-specific new hire reporting rules. HomeWork Solutions, similar to Paychex, 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 Poppins does not supply this service.
• 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.

Visit HomeWork Payroll

HomePay: Best for Nanny Payroll and HR

HomePay

Overall Score: 3.81 OUT OF 5

What We Like

• 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

What's Missing

• No mobile application
• Doesn’t prepare, file, and remit local taxes
• Year-end tax preparation costs extra
• No accounting integration

HomePay Pricing

• $75 month
• $100 for year-end filing
• No free trial
• 6-month Happiness Guarantee

Although the most expensive of the listed providers, HomePay scored well at 3.81 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, something none of the others do except, perhaps, Paychex. 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.

HomePay Pricing

You’ll pay $75 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. This is one of the more expensive plans on our list.

HomePay Features

• Hassle-free employee setup: Although the most expensive HomePay, unlike Paychex and HomeWork Solutions, 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. Of our list, only Paychex offers this level of onboarding.
• Payroll: HomePay automatically calculates and facilitates employee payment through direct deposit or manual paycheck. In addition, HomePay alone has a time-tracker app through mobile. Others, like Paychex and SurePay, can integrate with timeclock software.
• Tax management: It will also calculate and withhold applicable taxes or payments that need to be made for each pay period. Unlike most of the services on our list, HomePay handles federal and state taxes only.
• HR features: Aside from new hire reporting, HomePay offers online onboarding. You’ll also be able to track PTO and reimbursements. HomePay will also maintain the general record-keeping for you.
• Online self-service portal: Although it does not have a mobile app version like Paychex, 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 that HomePay will handle any incurred tax penalties for mistakes HomePay representatives make. Most of the services on our list have a similar guarantee. On the other hand, the Happiness Guarantee reimburses 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.

Visit HomePay

Best Nanny Payroll Alternatives

Our goal is to share the best nanny payroll services for our readers, certain criteria must be met in order to make our top best for list, but two products impressed us enough to be listed as best alternatives. Poppins ranked well in our scoring for best nanny payroll services because of price and features. However, it’s only available in 14 states. NannyPay, on the other hand, is readily available to anyone, but it is a payroll program specific to household payroll and not a service. It’s terrific for those looking for a DIY payroll solution.

Poppins Payroll: Best for Easy Payroll Processing (14 states)

Poppins Payroll

Overall Score: 4.16 OUT OF 5

What We Like

• Handles everything from EIN to taxes
• Easy to sign up, cancel
• Transparent pricing
• Records kept for five years

What's Missing

• Only available in 14 states
• No benefits management
• You onboard employees

Poppins Payroll Pricing

• $45/month
• Extra employees: +$10 per month
• 1 month free

Available in

• District of Columbia
• California
• Colorado
• Florida
• Georgia
• Illinois
• Maryland
• Massachusetts
• Minnesota
• New York
• North Carolina
• Oregon
• Texas
• Virginia
• Washington

Like a spoonful of sugar, Poppins Payroll makes nanny payroll chores go down easy. When you sign up, it handles the most disagreeable of tasks, like getting your federal employer identification number, calculating pay with deductions, and filing your taxes. It handles payroll for you, and you only need to get involved to make changes if needed. Real-world users sing high praise—and at $45 a month, even Mr. Banks would approve.

Poppins earned the second-highest score on our rubric—4.16 out of 5—but it comes with a big drawback. It’s only available in 14 states and the District of Columbia. (California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Minnesota, New York, North Carolina, Oregon, Texas, Virginia, and Washington) However, if you live in any of these states, then you may find Poppins Payroll to be your best choice for a quick and easy way to pay your nanny.

Poppins Payroll Pricing

Poppins Payroll costs $45 per month for payroll and taxes, and it offers the first month free. Additional employees can be added for just $10 per month. For the amount of service it provides, it’s among the most reasonably priced on our list.

Poppins Payroll Features

• Easy setup: It takes 10 minutes to sign up. You give Poppins some information about yourself and your employee. If needed, they will provide you with tax forms for your employee to fill out and sign. Then Poppins secures your EIN, registers you with the state, and files new-employee paperwork. Once you’ve entered information, Poppins’ software auto-populates other forms for you.
• Simple, precise payroll: Poppins does all the payroll calculations and sends you the details via email. If there are no changes, you don’t have to do anything. Poppins can arrange direct deposit transfers of pay or if you prefer, tell you the amount so you can write a check. Like several of the services on our list, Poppins lets you set PTO policies then tracks the days and includes the tally on your employee’s paystub. Like Paychex, Poppins lets you set multiple pay rates.
• Taxes are done for you: In the 14 states where Poppins is available, it handles the federal, state, and local taxes automatically, keeping up with changing laws and regulations. The others on our list work in all 50 states, but some charge extra for tax filing or only provide the information. Poppins, on the other hand, files and pays according to schedule—all you need to do is e-sign. It guarantees accuracy and on-time remittance.
• Records: While some companies, like SurePayroll, will remove access to your records and forms if you quit their service, Poppins maintains records in a digital library you can access for five years.
• Excellent user reviews: Poppins does not have many user reviews, but those we found on Yelp were 5 stars. Users praised the set-it-and-forget-it simplicity, the trustworthiness of the people, and the excellent customer support.

Visit Poppins Payroll

NannyPay: Best DIY Payroll for Those on a Budget

NannyPay

Overall Score: 3.00 OUT OF 5

What We Like

• Extremely affordable
• Generates Schedule H, W-2s
• Easy to use
• Unlimited pay runs

What's Missing

• Does not pay employees
• No HR tools
• No HR help

NannyPay Pricing

• $149.95/year
• 30-day free trial
• 14-day money-back guarantee

Unlike the other nanny payroll providers on our list, NannyPay is not a service so much as a program that lets you handle payroll and tax calculations yourself. As such, it’s the cheapest nanny payroll service on our list, but also has the least features. It earned 3.0 out of 5 on our rubric, which was not the lowest score of all 19 services we evaluated. We include it on our list to give you a DIY option for nanny payroll.

NannyPay is an annual purchase, as it updates tax charts to comply with the latest laws. You can get a cloud or desktop version. Its functions are simple: track and calculate payroll and tax withholdings so you can make the necessary payments and filings. It generates the needed paperwork so all you do is print and send. Users say the setup takes some time but after that, it’s easy to run. You need to get your own EIN and file new hire reporting; NannyPay does not help with that.

NannyPay Pricing

NannyPay charges only once a year: $149.95 for the software. It does not file taxes or other paperwork but will do the calculations. It’s the only payroll on our list with an annual subscription and is the cheapest. It has a 30-day free trial and a 14-day money-back guarantee.

NannyPay Features

• Desktop version: Not everyone is comfortable having their personal and financial information on the cloud. Of all the services on our list, NannyPay alone offers a desktop-only version.
• DIY payroll: NannyPay makes it easy to calculate payroll. It tracks taxable and non-taxable payments and deductions, including 401(k) or mileage reimbursements, so that you can make accurate tax payments as well as correct paychecks. It generates detailed pay stubs and paychecks on compatible paycheck stock (Nelco payroll checks L81064P). There are no limits to pay runs, so you can pay as often as you like and even additional payments. Compare this to Nannychex, which charges by paycheck, or others on the list that have a set pay schedule.
• DIY Taxes: While NannyPay does not file or pay your taxes, it does calculate the federal and state income (not local), including Social Security and other payroll taxes. It also generates a signature-ready Schedule H, plus Forms W-2 and W3. Most of the services on our list charge extra for these year-end reports.
• Support: NannyPay’s support is weak compared to the services on our list, but it does supply you with a Household Employer’s Guide, and the website contains resources and articles about issues faced by household employers. It provides tech support by online guides and email.

Visit NannyPay

How We Chose the 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 19 providers down to seven and found SurePayroll to be the best. It offers the most features for the best price and has excellent user reviews as well.

Click through the tabs below for our full evaluation criteria:

Why Do I Need Nanny Payroll?

Bottom Line

As a domestic employer, you have responsibilities like a business, including taxes and providing certain benefits. Failure to do so, even in ignorance, can cost you hundreds of dollars in penalties. Nanny payroll services provide you with the information and tools you need to treat your household employees right and keep yourself compliant with federal, state, and local laws.

Among the seven providers that ranked high in our evaluation, SurePayroll is the best. It has the expertise that comes from working with small businesses but has a special program specifically for nanny payroll/household employees. It provides payroll, tax filing and payment, and even benefits. Plus, it’s among the cheapest of the services on our list. Sign up for SurePayroll and take nanny payroll off your chores list today.

Visit SurePayroll