Best Nanny Payroll Services

SurePayroll is the best overall nanny payroll service due to its affordability

Updated February 22, 2023

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Nanny services can help parents balance childcare and work, and often, the most challenging part is finding the right person for your family. However, when you find a great nanny, you have to pay them, and adding a household employee puts you on the hook with the Internal Revenue Service (IRS). Adding a nanny payroll to your routine is critical to avoid fines.

Failure to file Schedule H (household employment taxes) and payroll taxes can result in hefty fines. Previous data published by the IRS found “only 5.3% of household employers file Schedule H” and adequately document the compliance with the nanny tax. This, along with several high-profile scandals, made the IRS clamp down on nanny tax compliance.

Fortunately, many nanny payroll services exist to automate some or all of the payroll process. The best services are affordable, easy to use and provide more than one type of plan depending on the service.

Best Nanny Payroll Services of 2023

Best Customer Service: HomeWork Solutions
Best for Multiple Employees: Savvy Nanny
Best for Offering Benefits: GTM Payroll Services
Best for Seasonal Use: Payroll by Wave

Best Overall : SurePayroll

Key Specs

Cost: Starts at $49.99
Fees: Yes
Mobile App: Yes

Why We Chose It

SurePayroll is our top pick because it provides affordable payroll services, a mobile app, and you can pay your nanny with just a few clicks. In addition, it offers a two-month free trial period.

Pros and Cons

Pros

No penalty tax guarantee
No contract required
2-month free trial

Cons

No email support
Extra fees for accounting integrations
Additional expenses for Ohio and Pennsylvania residents

Overview

SurePayroll began as a service for small businesses but quickly updated its offerings to include a cloud-based nanny payroll solution. With SurePayroll’s easy-to-use mobile applications and tax filing guarantee, it’s the best overall solution for parents.

You’ll pay a monthly fee of $49.99 to use SurePayroll services for one household employee and can add additional staff for $10 per person. However, you may pay extra costs, such as:

$9.99 per month to calculate and file payroll taxes in two or more states
$9.99 per month to calculate and file local taxes in Ohio and Pennsylvania
$4.99 per month to integrate payroll services with your accounting software
$4.99 per month plus $3 per employee per month for time clock integration

The nanny and household staff plan let you use a browser or an iOS and Android-compatible mobile device to oversee payments. With your monthly payment, you get the following:

Two-day payroll processing
AutoPayroll option for salaried employees
SurePayroll completes your state-required new-hire reporting
Receive a Schedule H for your yearly taxes
Automatically files your quarterly 1040-ES
Calculates, pays, and files Social Security, Medicare, unemployment, and state taxes
Offers direct deposit and online pay stubs
Mobile apps for you and your employees

For an extra fee, you can integrate your payroll services with your household accounting program, such as Sage 50-US, Intuit QuickBooks Online, Less Accounting, kashoo, Xero, and AccountEdge. Although the company doesn’t provide email customer service, their phone support is available Monday through Friday from 7 a.m. to 8 p.m. and Saturday from 9 a.m. to 1 p.m. CT.

Best Customer Service : HomeWork Solutions

Key Specs

Cost: Various depending on service
Fees: Yes; requires a set-up fee
Mobile App: No

Why We Chose It

HomeWork Solutions delivers concierge-quality services for dedicated help when you need it with unlimited phone consultations.

Pros and Cons

Pros

No penalty tax guarantee
Works in all 50 states
Unlimited telephone consultations

Cons

More expensive than other solutions
Requires a setup fee
No mobile apps

Overview

Established in 1993, HomeWork Solutions is a well-known household payroll and nanny tax compliance service. Its comprehensive software and responsive customer service teams support parents throughout the process, making it the clear winner for our best customer service category.

HomeWork Solutions provides two robust plans for payroll services for one employee. Both programs offer services such as:

Calculate, pay, and file tax withholding amounts
Prepare payroll tax returns
Generates form 1040 Schedule H and W-2

If you pay your employee yourself, then the Essential Payroll plan handles everything else. However, if you want HomeWork Solutions to mail a check or use direct deposit, opt for the Complete Payroll plan. Pricing packages include:

Essential Payroll: $150 per quarter for tax filing, form generation, and unlimited support
Complete Payroll: $225 per quarter with weekly nanny payments or $200 per quarter with bi-weekly nanny payments for a dedicated payroll representative and cloud storage for payroll records

You will pay one-time fees of $100 for initial setup and a year-end fee of $100. If you add more than one employee, it’s an extra $60 per employee per quarter. Along with a comprehensive knowledge base, HomeWork Solutions offers telephone support Monday through Friday from 7:30 a.m. to 6 p.m. CT.

Best Free Option : Payroll4Free.com

Key Specs

Cost: Free
Fees: No
Mobile App: No

Why We Chose It

For parents on a tight budget, Payroll4Free.com calculates your household employee tax payments for free, plus will process payroll processing and a few other no-frills features.

Pros and Cons

Pros

Zero cost to process payroll and direct deposit checks
Low fee for full-service features
Integrates with accounting programs

Cons

Only works on Windows operating systems
Must pay for payroll tax deposits and filing
Clunky interface
Cannot offer payroll tax services to household employers

Overview

As a Better Business Bureau-accredited business, Payroll4Free.com handles your tax documents and calculations for free. The company keeps the service free by including advertisements in the software, making it the best free option for household employers.

While the company does have the licensure to file a Schedule H, which is necessary to file taxes for household employers, you get these features at no cost:

Vacation, sick time, and paid time off (PTO) tracking
Reports for earnings, taxes, and benefits
Employee portal to access paystubs and W-2 forms
Payroll processing for direct deposits or paper checks
Calculates and fills out your federal, state, and local forms
Unlimited live customer service
Ability to set up 401(k) deductions and contributions
Integrates with Intuit QuickBooks and other accounting programs
Can print checks from the software

Although Payroll4Free.com doesn’t provide many online resources, you can call or email the company for U.S.-based support.

Best for Multiple Employees : Savvy Nanny

Key Specs

Cost: Starts at $40 per month
Fees: Yes
Mobile App: No

Why We Chose It

We liked Savvy Nanny because it is the most affordable option for households with multiple employees and has a user-friendly system that integrates with QuickBooks.

Pros

User-friendly interface
No contract required
Available in all 50 states

Cons

Can’t process city or county taxes in some locations
The service doesn’t help you apply for an EIN

Overview

Savvy Nanny provides the features you need to handle one or more household staff without breaking your budget, making it the best choice for families with multiple employees.

With Savvy Nanny, you’ll pay one flat-rate fee of $40 per month for one to two employees and a $50 year-end filing fee. You can add extra household staff for $6 per employee per month. The company is very transparent and lists all possible expenses in a pop-up form. The extra fees all stem from possible errors like non-sufficient funds or re-running payrolls.

This all-in-one service comes with features like:

Files and pays all state and federal taxes once you click submit
Options for direct deposit or paper checks
Can email pay stubs to employees
Can automate payroll or set up reminders
Real-time reports are exportable to Microsoft Excel
Integrates with QuickBooks
Automatically prepares year-end W-2s for printing

Savvy Nanny offers email, chat, and phone support on weekdays from 7 a.m. to 8 p.m. CT plus Saturday hours from 9 a.m. to 1 p.m.

Most Comprehensive Option : NannyChex

Key Specs

Cost: Full service starts at $80 per quarter
Fees: Yes
Mobile App: No

Why We Chose It

If you need a service to handle it all, NannyChex takes care of every aspect of your payroll, including PTO or sick time tracking.

Pros

No contract required
Works in all 50 states and handles all local taxes
Unlimited free assistance

Cons

No mobile app
Extra fees for payroll processing
Expensive year-end fees

Overview

Built specifically for paying household employees, NannyChex is an all-in-one solution. Get free support for each step of payroll, then automate it so you don’t have to worry about quarterly or year-end tax compliance. This payroll service delivers everything you need making it the most comprehensive option at an affordable price.

NannyChex offers taxes-only or full-service plans, which is great if you want to pay your employee via check but don’t want to deal with taxes. Both packages provide the following:

Free registration and setup
Dedicated personal account representative
The company sets up your EIN
Prepares and submits new hire reports
Files and deposits tax payments
Maintains all records
Sick time, PTO, and vacation tracking
Handles all tax correspondence
Manages worker compensation audits, employment verification, and unemployment insurance claims

You don’t need to worry about hidden fees with NannyChex. Choose from two plans with simple pricing structures and no contracts:

Taxes Only: Pay $125 per quarter and $195 for year-end tax preparation
Full Service: Pay $80 per quarter, $150 year-end tax fee, and $6.25 payroll processing per weekly check or $12.50 per bi-weekly, semi-monthly, or monthly paycheck

Send an email or call the toll-free customer support number for assistance with the software or payroll tax questions.

Best for Offering Benefits : GTM Payroll Services

Key Specs

Cost: Starts at $65 a month
Fees: Yes
Mobile App: Yes

Why We Chose It

As a licensed broker for insurance and benefits, GTM Payroll Services handles your payroll and benefits with ease, allowing you to offer a range of benefits to your household employees.

Pros

Huge range of benefit options
Responsive customer service
No tax penalty guarantee

Cons

A six-month contract is required
$95 setup fee
More expensive than other services

Overview

Finding and retaining household help isn’t easy. But providing benefits like a 401(k) plan or maintaining compliance with your state’s worker compensation insurance helps you secure and keep a nanny. GTM Payroll Services is also a licensed broker offering a vast range of benefits in 28 states and Washington, D.C., making it the best payroll company for offering staff benefits.

GTM Payroll Services offers one comprehensive plan for $65 a month. You’ll also pay a $95 setup fee and $105 for year-end tax preparation. If you have more than one employee, it’s an extra $20 per month per employee. The payroll plan includes the following:

Payroll tax calculation, filing, and payment
Optional year-end tax preparation
Unlimited support calls, emails, and live chat
Free direct deposit
Web-based or mobile app
Self-service employee portal for paystubs and W-2 access
Automated payroll services

As a licensed broker, the company offers custom quotes for a huge range of employee services, such as:

Travel insurance
Worker compensation insurance
Individual coverage HRA (ICHRA)
Medical, vision, dental, and virtual health benefits
Employee background checks
Health reimbursement arrangement (HRA)
Retirement plan options
Flexible spending account (FSA)
Small employer HRA (QSEHRA)
Employee dishonesty insurance

Along with tons of online resources, you can email or chat online with customer support. The company also offers free calls with their team by appointment, or you can simply call 800-929-9213 on weekdays between 8:30 a.m. and 8 p.m. ET.

Most Convenient Option : Simple Nanny

Key Specs

Cost: $29 annually
Fees: No
Mobile App:No

Why We Chose It

Simple Nanny is a DIY payroll calculator. It only takes a few seconds to enter your nanny’s hours for each pay period. Its ease of use and bare-bones format is why Simple Nanny wins for the most convenient nanny payroll software. Save time with accurate calculations and a hassle-free user interface.

Pros

Free 30-day trial with no credit card needed
Straightforward dashboard
Easy-to-use calculator tool

Cons

Minimal customer service
No automatic reminders
Not for people wanting comprehensive services

Overview

Simple Nanny is an expensive, no-frills nanny payroll online calculator. It was created because some people don't need end-to-end payroll because they pay their nannies in cash or by personal check. However, keeping track of changing tax rates and 12 months of data can be difficult when using a spreadsheet. Instead, Simple Nanny handles the calculations for you.

For $29 per year, the software offers a minimal dashboard that lists your household employees and paycheck information. You can click by employee or pay period to review information about taxes or hours. When it's time to pay quarterly or annual taxes, it's easy to access your records and complete the filing information on state and federal websites.

Due to its simplicity, Simple Nanny doesn't offer an extensive knowledge base or customer support by phone. You can email the company with any questions.

Best for Seasonal Use : Payroll by Wave

Key Specs

Cost: Starts at $20 a month
Fees: N/A
Mobile App: No

Why We Chose it

With Payroll by Wave you only pay for activated employees, making it perfect for keeping track of seasonal staff, like a summer nanny or holiday babysitter.

Pros

Free 30-day trial
100% guaranteed accuracy
User-friendly dashboard

Cons

Full-service only available in 14 states
No mobile app
No third-party integrations

Overview

Wave Payroll makes it easy to track pay periods, taxes, and nanny information, even when your staff only works part of the year. Instead of re-entering data each time a nanny rejoins your household, you can find their name and reactivate your employee.

Although Wave Payroll is excellent for year-round use, its offboarding capabilities differentiate it from other software, making it the best choice for households with seasonal staff.

Wave Payroll provides tax filing services for people living in 14 states. Household employers in other states have access to Wave Payroll’s self-service option, where you file and pay your taxes using data from the Wave application. The plan prices are:

Full-service payroll: $35 per month, plus $6 per active employee
Self-service payroll: $20 per month plus $6 per active employee

This nanny payroll service provides everything you need to activate or deactivate your seasonal employees. Click on the employee’s name, and you can change the status by placing your employee on leave or removing them. You can also see their employment history with dates, tax details, or employee records. Other software features include:

One-click direct deposit
Expense reports show payroll data by employee or date
Employee portal for paystubs and tax forms
Full-service plans automatically file and send tax payments
Quickly generate end-of-year tax forms
Timesheet tool to track hours
Integration with free Wave accounting software
To-do list on your dashboard to easily see upcoming payroll tasks
Payroll Accuracy Guarantee

Wave Payroll offers live chat Monday through Friday and email support for your customer service needs.

Final Verdict

Many nanny payroll services on the market cater to specific needs, such as a household with multiple employees to families seeking free options. Our top overall pick for the best nanny payroll service is affordable and offers a two-month free trial period where you can test-drive if a payroll service is necessary for your family. Not all nanny payroll services offer a mobile app, but SurePayroll does and that can make a difference for employers on the go.

Compare the Best Nanny Payroll Services

Company	Price	Fees	Mobile App
SurePayroll: Best Overall	Starts at $49.99 a month	Yes	Yes
HomeWork Solutions: Best Customer Service	Depends on service	Yes	No
Payroll4Free.com: Best Free Option	Free	No	No
Savvy Nanny: Best for Mulitple Employees	Starts at $40	Yes	No
NannyChex: Most Comprehensive	Starts at $80 per quarter (full service)	Yes	No
GTM Payroll Services: Best for Offering Benefits	Starts at $65 a month	Yes	Yes
Simple Nanny: Most Convenient Option	$29 annually	No	No
Payroll by Wave: Best for Seasonal Use	Starts at $20 a month	N/A	No

Guide to Choosing a Nanny Payroll Service

Anyone with a nanny and other household help who wants to save time may benefit from nanny payroll services. Calculating the various taxes on household employees can be tedious, and it's easy to make errors or miss changes in tax law. You don't need any special accounting or payroll skills to use payroll software, making it perfect for households looking to automate payroll and save time during tax season.

The best nanny payroll services will help you track your household employee payments, correctly calculate taxes, and stay compliant with tax rules. DIY or self-service options perform the tax calculations for quarterly or end-of-year taxes, but you file the documents with your local, state, and federal governments.

The service you choose will likely depend on your circumstances. You may only need a free or low-fee service with a calculator to track your nanny's hours and overall compensation. If you have a full-time nanny or multiple nannies, you may want more help.

Full-service plans calculate, file, and make your tax payments to the government on your behalf. Many full-service programs offer guarantees, so if your tax payment is incorrect, the payroll provider deals with the Internal Revenue Service and pays any associated fees.

Nanny payroll solutions may also help you track worker compensation, offer benefits, or direct deposit your staff's paychecks.

Frequently Asked Questions

Why Would Your Nanny Want To Be on Payroll

Being on a payroll offers nannies protections, such as worker's compensation, and it can be beneficial in the long term for financial planning. Being paid "under the table" over a certain amount is illegal, and both nannies and employers can find themselves charged fees and taxes if it is discovered.

Should I Give my Nanny a W-2 or 1099?

If your nanny is employed by you, they should be issued a W-2 to file their tax return if they earned more than $2.600 for the tax year (2023).

Can I Claim my Nanny on My Taxes?

Yes and no. You cannot claim your nanny on your taxes as you would a dependent, but you may qualify for a "nanny deduction" if you meet specific criteria, such as your child or children under 13 years of age and both parents working or going to school full-time.

How Does Having a Nanny Affect My Taxes?

If you have hired your nanny legally, you will be responsible for paying both employer and employee shares of Medicare and Social Security.

What Does a Nanny Payroll Service Cost?

Nanny payroll solutions offer various plans that consist of full service or self-service options. For fully automated services where the company handles your tax payments and direct deposit checks, you’ll pay $15 to $65 per month.

For self-service plans where you file and pay your taxes yourself, you’ll find free options like Payroll4Free.com or plans ranging from $2.50 to $37.50 per month. However, you may incur several other fees, including:

Setup fee: Some providers charge a fee to set up your services, and it usually costs around $100.
Extra employees: For more than one employee, you’ll pay an additional $6 to $20 a month per worker.
Year-end fee: Annual tax form completion costs $0 to $195 as a one-time fee at the end of the year.
Check processing fee: Some companies, like NannyChex, charge a fee to process your payroll. Costs are $6.25 weekly or $12.50 for other types of payroll periods.

Methodology

We reviewed 20 reputable companies offering nanny payroll services and examined them for the total overall cost, ease of use, and types of plans for each service. Furthermore, we identified the best companies for specific use cases, such as households with more than one employee or those needing benefit packages.

We also looked at the various plan pricing and fees to select the best nanny payroll services, as these differ significantly among providers. Then we reviewed features of self-service and full-service plans, including unique offerings like assistance with new-hire paperwork or signing up for an EIN.

Lastly, we evaluated providers based on features helpful to families and employees, like mobile applications, PTO tracking, and annual tax form documents.

Camille Tokerud / Getty Images

Article Sources

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Internal Revenue Service. "Who Is Minding the Nanny Tax?"
Internal Revenue Service. "Topic No. 756 Employment Taxes for Household Employees."
Care.com. "Tax breaks and credits for families hiring a nanny."