5 Best Nanny Payroll Services of 2026 | Fit Small Business

5 Best Nanny Payroll Services of 2026

Paying a nanny isn’t as simple as running a small business payroll. The moment you hire a household employee, you take on a different set of tax and compliance responsibilities. I’ve found that the biggest challenge for household employers isn’t running nanny payroll itself, it’s staying compliant. Missing a filing or misclassifying a worker can…

Apr 2, 2026
13 minute read

Paying a nanny isn’t as simple as running a small business payroll. The moment you hire a household employee, you take on a different set of tax and compliance responsibilities.

I’ve found that the biggest challenge for household employers isn’t running nanny payroll itself, it’s staying compliant. Missing a filing or misclassifying a worker can lead to penalties that cost far more than the software. The best nanny payroll service removes that risk by automating filings, guiding setup, and keeping records organized.

To build this guide, I evaluated seven nanny payroll services and narrowed the list down to my top five picks.

ProviderBest forStarting price
Poppins PayrollOverall nanny payroll service$49/mo. for one employee
SurePayrollSimple, automated pay runs$39/mo. for one employee
Savvy Nanny PayrollBudget-friendly nanny payroll$39/mo. for two employees
HomeWork SolutionsPayroll and tax support$195/quarter for one employee
Nest PayrollManaging nanny back taxes$42/mo. for one employee

For a fully hands-off experience, I recommend starting with Poppins Payroll or HomeWork Solutions. If you prefer a lower-cost, simpler setup, SurePayroll, Nest Payroll, or Savvy Nanny Payroll are better fits.

Honorable Mention: NannyPay

NannyPay didn’t make my top five, but it’s a solid option for household employers who are comfortable handling tax payments and filings. It offers a cloud-based nanny payroll software with automatic pay calculations and tax form support. At $199.95 per year for up to three employees, it’s a cost-effective choice for families that want more control without paying for full-service payroll help.

Visit NannyPay

A quick comparison of the best nanny payroll services

ProviderPricing range*Additional employee feesOther features**
Poppins Payroll$49 flat monthly rate$10/employee monthly
  • PTO and sick leave tracking
  • New hire reporting
  • Sample contracts
SurePayroll$39 flat monthly rate$10/employee monthly
  • Background screening
Savvy Nanny Payroll$39 flat monthly rate$6/employee monthly
  • Multistate filings
HomeWork Solutions$195 to $389 per quarter$69/employee quarterly
  • Time tracking
  • New hire reporting
Nest Payroll$42 to $69 per monthRequires upgrading to higher plans
  • PTO and sick leave tracking
  • New hire reporting

*These fees include one household employee, except for Savvy Nanny Payroll’s, which covers two workers.
**Some features may cost extra.

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.

Poppins Payroll: Best overall nanny payroll service

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SurePayroll: Best for simple, automated nanny pay runs

Savvy Nanny Payroll: Best budget-friendly nanny payroll

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HomeWork Solutions: Best for payroll and tax support

Nest Payroll: Best for managing nanny back taxes

Looking for something else? Find more payroll software in our best payroll services guide. If you need help in selecting a payroll service, check out these expert tips on how to find the right payroll solutions.

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How to choose the best nanny payroll service

The best nanny payroll service is the one that matches how much help you need. Some families want a provider that handles everything from tax setup to filings. Others just want an easier way to pay their nanny and keep records straight. When comparing options, I’d focus on these five things:

  • Pricing and extra fees: Start with the full cost, not just the base monthly price. Some providers charge extra for additional employees, year-end forms, and setup help. A service that looks cheaper at first can end up costing more once those fees are added in.
  • Tax filing support: This is where nanny payroll services earn their keep. Check whether the provider files federal and state taxes for you, prepares year-end forms like the W-2 and Schedule H, and helps with employer tax registration. If you live in an area with local payroll taxes, make sure that is covered, too.
  • Payment options: Choose a service that fits how you want to handle household employee payments. Some providers offer direct deposit, others use electronic payment gateways, while a few can prepare paychecks and mail them to employees. Choose a service that fits how you want to handle household payments.
  • Level of support: Some families look for a simple nanny payroll software they can use on their own. Others want a payroll specialist they can contact when questions come up. If you are hiring a nanny for the first time or dealing with back taxes, stronger support can be worth paying more for.
  • Household-employer fit: Not every payroll tool is built with household employers in mind. I’d look for a provider that clearly supports nanny payroll, understands household tax rules, and offers features that matter, like pay stubs, PTO tracking, and easy access to tax documents.

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Methodology: How I evaluated the best nanny payroll service

To find the best nanny payroll service, I used a scoring rubric with 28 data points to evaluate and compare these seven providers:

  • HomePay
  • Savvy Nanny Payroll
  • SurePayroll
  • HomeWork Solutions
  • Poppins Payroll
  • Nest Payroll
  • NannyPay

I focused on the features that household employers and families are most likely looking for, such as affordable pricing, payroll tax payment and filing support, tax account setup, customer assistance options, and tools to streamline nanny pay runs. I also added my expert score to each criterion based on the overall usefulness and effectiveness of the functionalities offered.

While I wasn’t able to test every product directly, I watched product demos and video tutorials when available. I also checked online user reviews for insight into each system’s ease of use and the provider’s overall nanny payroll service.

Below is my full evaluation criteria:

  • Nanny payroll features (45%): For this criterion, I evaluated how well each provider handles nanny pay processing and household employer tax compliance. Providers scored higher when they offered full-service payroll with automated tax handling and minimal manual work. I also looked for additional tools to help with pay processing, like time tracking and PTO management.
  • Pricing (25%): In this criterion, I looked for transparent pricing, free trials or discounts, unlimited payroll runs, and overall value for money. I also gave higher points to providers that cost no more than $50 per month to run payroll for 3 household employees.
  • Platform/interface (20%): This looks at how easy it is for household employers to set up payroll, complete routine tasks, and access payroll and tax information. I also considered the overall system experience, whether the provider uses a self-service platform, client portal, or guided service model.
  • Customer support (10%): Here, I considered the quality, availability, and expertise of customer support provided to household employers. I checked how effectively users can get help with payroll setup and tax or compliance issues, especially when dealing with government requirements or time-sensitive concerns.
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Nanny payroll frequently asked questions (FAQs)

Once you hire a household employee, you may need to withhold taxes, pay employer taxes, file year-end forms, and follow federal and state labor rules. A nanny payroll service helps you handle those requirements without having to manage the calculations, filings, and paperwork on your own.

No. In most cases, a nanny is considered a household employee because you control their schedule, duties, and work setting. That means you are generally responsible for withholding and paying certain taxes and, depending on your state, carrying workers’ compensation insurance.

In addition to paying your nannies legally, registering as a household employer grants them access to benefits like unemployment insurance. You may also qualify for tax breaks such as the Child and Dependent Care Tax Credit.

You need a federal employer identification number, or EIN, from the IRS. You may also need state and local tax account numbers, depending on where you live. Most payroll providers will ask for your name, address, contact details, and your nanny’s personal information, tax details, and work eligibility documents to complete the setup.

No. Household employees cannot be paid through your business payroll unless they are actually working for the business. Nanny payroll has to be handled separately because household employment taxes and reporting rules are different from business payroll rules.

Yes, you may still need nanny payroll help even if you employ just one nanny. Tax and filing requirements are based on the type of worker and how much you pay them, not on having multiple employees. Even with one household employee, a payroll service can save time and reduce the risk of missed filings or tax mistakes.

RAF

Robie Ann Ferrer is a human resources professional with a decade of experience helping companies manage their workforce and optimize HR processes. Her background includes roles as an HR Specialist and HR Business Partner, where she handled various facets of HR, such as payroll, benefits administration, employee services, compensation management, and HR systems.

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