Payroll Services for Household Employees

Yet, its offerings are modest when directly compared to the rest of the options on this list. Even if some of your personnel only work a portion of the year, Wave Payroll makes it simple to keep track of pay periods, taxes, and nanny information. You can locate their name and reactivate your employee so that you don’t have to submit information each time a nanny returns to your family. Wave Payroll stands apart from other software because of its offboarding features even though it is great for year-round use. SurePayroll was the first business to offer online payroll for small businesses in 2000, and it has since provided a user-friendly, adaptable service at a reasonable price.

If you were hoping at least one nanny payroll service provider locked down a Mary Poppins reference, Poppins Payroll is absolutely here for you. At $45 a month, Poppins Payroll will take on just about every payroll task you need, from Employer Identification Number registration to new-hire paperwork filing. The service files taxes for you, stores records, and even helps with bookkeeping. Most notably, it doesn’t charge extra for quarterly or year-end tax filing. HomePay admittedly doesn’t have a wide range of features, but the caregiver company behind HomePay designed it with nannies and their employers in mind.

What do I need to set up my household employer account?

Easy to use interface and versatile software add it to the top of our list. Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions. If your state is not one that they provide payroll in, however, Poppins Payroll will not be right for you.

If budget isn’t much of a hindrance and you want to offer more comprehensive benefits to your nanny, such as health insurance and a retirement plan, look into ADP RUN and GTM. SurePayroll and Homebase enable integrations with external software but SurePayroll charges extra for this. HomePay and Savvy Nanny don’t enable integrations, so you’ll need to navigate various apps for scheduling and accounting. Beyond the usual direct deposit, ADP RUN also enables payment through debit card and ADPCheck.

• The company will calculate, file, and pay your withholding and payroll taxes.
• For what are considered “tax service states”, the base rate for payroll services is $35 per month plus $6 for each employee or contractor on your payroll.
• Most household employers begin using a speadsheet and that’s perfectly fine.
• Paychex also has better customer service than many of its cheaper competitors.
• We gave high points to those that provide a dedicated representative, employer ID and tax set-up assistance, and live phone support that resolves issues promptly.
• This economical payroll solution offers everything you require, making it the most complete choice.

Do You Owe The Babysitter Tax?

As such, it has everything you’ll need as a nanny employer, all at a flat monthly rate, which means it provides the most value if you hire multiple household employees. The right payroll software for your household will depend on a variety of key considerations. First, ask yourself how much you’re willing and able to pay for a nanny tax service.

To figure it, we suggest you start with the Department of Revenue website for your state. Our tax payment calculator quickly gives you the data you need to file quarterly and at the end of the year. But as with any choice, you should always pair advice with your own research.

Nanny payroll tax overview

For this article, 18 of the top nanny payroll software providers were evaluated and narrowed down to the best 5 for your household. Extensive evaluation of 33 data points was done to determine affordability, payroll processing features, and how easy each was to use. Paying nannies and others who perform work in and around your home isn’t always a simple transaction. But having a household payroll service can help you comply with the household employee tax and other employer obligations.

Time-tracking integration

• Additionally, since it partners with Care.com you have a go-to source for finding and paying a nanny or household employee.
• Alex has patiently walked us through confusing tax situations and, more importantly, ultimately taken care of them for us.
• Federal and state tax obligations must be understood to ensure all required taxes are withheld and remitted.
• According to previously released IRS data, “just 5.3% of household employers submit Schedule H” and properly demonstrate nanny tax compliance.
• To arrive at the top nanny payroll services, we evaluated 58 plans or products across 37 payroll providers, ranging from basic small business payroll to household-employee-specific services.
• SurePayroll started out as a small business service but quickly expanded its selection to include a cloud-based solution for nanny payroll.

Second, if tax rates or the nanny’s pay rate changes, it’s hard to fix the speadsheet while preserving past data. Simplify witholdding taxes for your nanny with our user-friendly and inexpensive service, which helps calculate wages and taxes and generates pay stubs and the info you need to file taxes. NannyChex is an all-in-one system designed exclusively for paying home employees.

Poppins Payroll is a payroll service specifically designed for household employees. They offer basic payroll services as well as tax filings for a flat monthly fee. Superbly professional.” They have excellent customer reviews on the BBB website. HomePay is part of Care.com, a well known caregiver placement and finder site. HomePay is one of the more comprehensive nanny payroll services, although they are a bit expensive. In addition to payroll and tax filings, they will also offer support if you are ever audited by the IRS.

Payroll practices also foster transparency and trust between employers and nannies. Pay stubs provide a clear breakdown of wages, taxes withheld, and deductions, simplifying personal tax filing. Using payroll software or services can streamline these processes, improving accuracy and reducing errors. A list of nanny payroll services wouldn’t be complete without a company that references the infamous Mary Poppins. FreshBooks has paired up with Gusto, a small business-focused payroll solution that is simple to use and easily integrated with FreshBooks.

Why do I need nanny payroll services?

If you work with a payroll provider, they usually help you set up your household payroll and support you afterward. You may even have access to experienced payroll specialists who can answer your questions about paying household employees. In some cases, depending on the level of service you purchase, payroll providers will help you stay informed of any legal or regulatory changes that could affect you and your nanny.

ADP RUN isn’t specific to nanny payroll; however, its features meet the needs of those searching for a payroll solution that ensures accuracy and compliance with state and federal law. GTM also offers HR features beyond payroll, so if you want to offer your nanny benefits such as health insurance and nanny payroll services a retirement plan, GTM is a solid option. It must be noted, though, that if you want a more comprehensive offering, you’ll have to upgrade to the higher of GTM’s two pricing plans.