HomePay is an all-in-one nanny payroll and tax solution that’s ideal for household employers who want to fully outsource their nanny payroll duties. For more than 25 years, it has tackled payroll processing and tax filing for nannies, senior caregivers, housekeepers, personal assistants, and other domestic workers. And to top it off, Care.com is its parent company, so you also get easier access to hiring and recruiting tools.
What We Recommend HomePay For
HomePay ranked as the best overall nanny payroll service in our buyer’s guide, primarily because of its nanny-specific expertise and full-service features. HomePay’s reps manage your payroll process for you vs just giving you the tools and training to do it. They’ll even set up your tax accounts to make it easier for you to get started. Although it’s not more affordable than doing payroll yourself, using HomePay gives you access to payroll tax experts who stay abreast of changing regulations and can save you money in the long run—plus there are no registration or setup fees.
In short, HomePay is best for:
- Families hiring household employees: HomePay was created by Care.com, a service many families use to find nannies and other care workers. Because of the partnership, using HomePay and Care.com together will provide you with a partial household employee management system—from recruiting to hiring and running payroll.
- Household employers who are busy and need hands-off payroll: If you are always busy with work, HomePay can take care of your household employees’ payroll for you. It handles all aspects of payroll, tax, and HR with ease. In case you need its expert advice, its team is always available through live phone, email, and chat—support is unlimited. They will also represent you when dealing with tax agencies.
- Employers who work outside of the home: HomePay always sends email reminders to employers about their payroll and tax schedules. It also has a self-portal where you can manage payroll on mobile. You can even change the nanny’s hours and rates quickly from any device when using your HomePay account.
When HomePay Would Not Be a Good Fit
- Employers who need payroll software with multiple integrations: HomePay has limited integration with other software. If you have existing third-party software you need to sync with your payroll system, we recommend that you check out our Paychex Flex review.
- Household employers that want a do-it-yourself (DIY) payroll and tax service: HomePay is designed to process payroll and file tax automatically—both processes are part of the package. Hence, if you want a DIY solution where you can choose payroll-only or tax-only services, we recommend that you read our Patriot Software review.
Looking for something different? Read our guide to the best payroll services to see other top-ranked providers.
|No registration and set-up fees||More expensive than competitors|
|Sets up federal and state tax accounts||Year-end tax preparation costs extra|
|Experts on staff for advising on compliance issues||No in-house printing of paper checks|
|Receives all state tax notices directly||Limited integrations|
HomePay Pricing and Features
HomePay’s payroll service costs $75 per month, per employee with no setup costs. It also has an annual filing fee of $50. If there are any IRS penalties, HomePay will cover them if its rep(s) made the mistake.
HomePay’s tax experts are available for any questions or advice if you need to deal with labor and tax issues. It provides customer support, five days a week, at no extra cost.
Here are some of HomePay’s top features:
- Sets up state and payroll tax accounts
- Prepares, files, and remits payroll taxes
- Provides online access for archived payroll tax records
- Offers direct deposit and manual check
- Allows new hire reporting
- Has employee onboarding
- Comes with a self-service portal
- Tracks PTO accruals and other reimbursements
- Generates pay stubs and payroll details to employees
- Gives you the option to handwrite paper checks
- Offers phone, email, and live chat support
Let’s discuss HomePay’s features and processes more in-depth.
HomePay automates payroll processing for any pay schedule you place your household employees on; it’s easier if they work the same number of hours each period. Its online payroll manager tool lets you view your employee compensation details. You can modify the hours and wages you would like to implement using this tool and generate a sample pay stub for you.
Once processed, you can pay your employees with a paycheck or via direct deposit. Although there’s no software to print the check, the employer can handwrite one, then HomePay will do the calculations and apply it to the payroll records. It will also generate a stub for it. Your employees can automatically view their pay stubs from their online HomePay accounts.
Payroll Tax Management
HomePay sets up your state and federal tax accounts and reports new hires on your behalf. Just like payroll, it also automatically calculates, withholds, and remits your local, state, and federal payroll taxes on time. And before the state and federal tax deadlines, HomePay generates your tax returns and posts them into your account. These online tax returns are always available in your HomePay account.
It prepares your year-end federal and state tax reports, including your W-2, W-3, and 1040 (Schedule H). It also manages your tax correspondence and official notices.
HomePay does the online onboarding for your new employees. It also monitors their PTO accruals and reimbursements. You and your employees can access all payroll information, like pay stubs and other payroll data, via a self-service portal. You can use your account to do any of the following:
- Modify payroll for an employee (hours and wages)
- View payroll, pay stubs, tax returns, and paid service fees history
- Add a new employee or inactivate a former employee
- Reactivate previously closed account for a new hire
- Download forms
HomePay has a team of professional tax and labor law experts that you can consult with five days a week from 8 a.m. to 6 p.m. from Mondays to Thursdays and 8 a.m. to 5 p.m. on Fridays. They will assist you in setting up your tax accounts, running payroll, and anything involving your payroll taxes and filings. They will also serve as your point of contact with tax agencies.
HomePay Ease of Use
- Easy to set up and use
- Reminders for payroll processing
- Reliable experts
- Advance notification of quarterly payments
- Responsive customer service
- Resource guides (tax calculator, W-4 forms, state tax requirements)
HomePay is very easy to set up and use. Its self-service portal is easy to navigate for both employers and employees. Experts are also just a phone call away, which brings comfort to household employers who do not know much about tax and labor laws. Its advanced notifications for payroll and quarterly tax payments also make it easier for users to comply earlier than the deadlines.
Top HomePay Alternatives
Best for: Households with multiple nannies
Best for: Households wanting one point-of-contact for help managing their nanny payroll
Best for: Families who need HR support
Base monthly fee from: $40
Base fee from: Customized pricing
Base quarterly fee from: $150 to $225
Year-end tax filing fee: $50
Year-end tax filing fee: Customized
Year-end tax filing fee: $100
If you’ve narrowed your list down to a few payroll services and help making a final decision, use our step-by-step guide on choosing the right payroll solution.
What Users Think About HomePay
Most HomePay users left positive reviews and pointed out that it is easy to set up and navigate. Reviewers also complemented its responsive tax and labor experts. Others mentioned that its advanced notifications for both payroll and quarterly tax deadlines saved them from penalties. There were some complaints about it being more expensive than other services and that it has more limited customer contact on holidays.
When reading through user reviews, I noticed some of these trends:
Users Don’t Like
No registration and set-up fees or hidden fees
Expensive compared to its competitors
Advanced notifications for both payroll and tax deadlines
Year-end tax preparation costs extra
Responsive and reliable customer service
Limited third-party integrations
HomePay is a complete payroll, tax, and HR tool that specifically caters to household employers. Although pricier than some payroll providers, it’s still a fairly affordable all-in-one solution that takes the burden of payroll off the employer. HomePay coordinates with state and federal agencies and manages correspondences on your behalf. Hence, if you want a fully outsourced payroll software that won’t break the bank, HomePay may be a good option for you.
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