There are many nanny payroll services available nowadays which is important if you want to hire a household employee. But before that, you have to get a federal Employer Identification Number (EIN) so you can pay their taxes. Depending on where you live you might also need workers compensation insurance. Finally, at the end of the fiscal year, you need to file all tax paperwork to the IRS and distribute the right forms to your household employees.
These are all basics you need to work on first. Now when it comes to the payroll service, we are here to help you. In this article, we will talk about all the best nanny payroll services we found on the web. So without further ado, let us jump straight in.
10 Best Nanny Payroll Services
First on our list is SurePayroll which is a great program at a low monthly price. It offers tax filing guarantee and if somehow that is not the case, they will deal with the IRS and pay all associated fines and fees. The other features of SurePayroll are automatic payroll payments and direct deposit, employee-facing smartphone application and great US-based customer service.
When it comes to the drawbacks, as it is priced affordably, it offers fewer features comparing to the others on the list. For example, it does not come with employee benefits and workers compensation insurance. But at the end of the day if you are paying a nanny just a few hours a day or week it does not worth spending a fortune on a program like that.
SurePayroll offers two plans starting with $19.99 self-service plan and a $29.99 full-service plan. On the second plan SurePayroll files taxes for you. All the other features are included in both the plans.
If you want more features from your nanny payroll solution, NannyChex will be a good option. The main features of this program are new hire reporting, employee identification number set up, sick leave, vacation time, and paid time off (PTO) tracking.
If you choose the full-service plan, it will also take care of direct deposit, though you will need to pay a fee for each paycheck deposited. The only set back is the price is much higher than programs like SurePayroll.
NannyChex offers two payroll plans which are a tax-only plan and a full-service plan. The tax only plan does not come with directly paying but take care of all the other aspects. Tax only plan costs $125 for quarterly tax filing and $195 for year-end. The full-service plan charges less in tax filing fees, but as you are paying for each deposited check, the yearly total will be approximately $795.
3. Savvy Nanny
If you have more than one household employee, Savvy Nanny will be a great solution. It comes with all the basic features and an affordable plan. There is no additional fee for paying up to two employees and if you have more, extra fees are nominal.
But you should be careful while using it as the service charges a series of fees that can add up if you’re not careful. For example, if you do not have sufficient funds to cover a payroll run, you will be charged $150 for the first time. After that, the charges will go sky high really fast.
It offers only one plan which costs $40 per month where you can pay two employees. On the year-ending, you will need to pay $50 more for the tax feeling fee.
4. Wave Payroll
Unlike other tools on the list, Wave Payroll was meant for freelancers and small business owners. But it can also be used as a nanny payroll service. It is also pretty cost-efficient and simple to set up. It comes with features like automatic payroll tax calculation, guaranteed payroll tax accuracy, direct deposit or check printing, workers compensation add-ons etc.
Although, in 36 states, Wave Payroll will not be able to file taxes for you but can calculate payroll taxes and directly deposit paychecks. Also, as mentioned earlier it was not specifically meant to be used as a nanny payroll tool, so it lacks a few features you might need.
For those 36 states Wave costs $20 a month and the remaining states need to pay $35 a month for the full-service plan.
5. GTM Payroll Services
Next on our list is GTM Payroll Services. It calculates payroll taxes, files them on your behalf, and automates payroll so your employees always get paid on time. These are all the basic features and you can add extra options like workers compensation insurance, employee health benefits, travel insurance etc.
Their customer care service is also pretty good and you can save up a bit by preparing and filing your own end-of-year tax forms. For the add-on benefits, this is one of the best programs if you really care for the people working on your home.
The basic plan costs $65 per month and if you add those extra add-ons the cost will go high. On the other hand, if you want GTM to do all the hard work you can opt-in for the optional $100 year-end tax prep service.
6. Poppins Payroll
Then we have Poppins Payroll which comes with services like employer Identification Number registration, new-hire paperwork filing, filing taxes on your behalf, store records etc. On the positive note, it does not charge anything extra for quarterly or year-end tax filing.
Sadly the program is only available on 11 states and the District of Columbia. But the developers are working fast to get the tool on the other states as soon as possible. Poppins is known for its user-friendliness and good customer support.
It costs $45 per month and the first month is totally free. So the total costs sum up to $495 per year.
7. HomeWork Solutions
If you need a dedicated account representative HomeWork Solutions is the way to go. Other than their main feature, it comes with comprehensive tax filing services, tax document storage etc. The set up is fast and take like 5 to 7 days.
If you are pretty serious about the service, only then choose this solution, as it costs much higher than the rest. Yes, it comes with a lower-priced option, but it cut down features like document storage and paystub access.
Their essential plan costs $50 per month or $150 quarterly and the complete plan costs $67 per month or $200 quarterly.
In case you need an offline solution, NannyPay is a good alternative you can try. It is a downloadable payroll software and comes with all the important features you need from a nanny payroll service. The main features are accurate calculations and signature-ready tax forms.
Although it does not manage direct deposit the cost of the program makes up for it. It supports Windows and Mac operating systems and if you use other operating systems it also has a cloud-based service.
NannyPay does not have a monthly billing option, Yearly it costs $150 for one to three employees and goes up to $250 if you need more.
If you are in need of something which offers you all-round solutions, HomePay might just be the one you are looking for. Apart from calculation & filing off taxes, it offers HR assistance which keeps you under compliance with nanny payroll laws. Its smart budgeting feature maximizes your tax benefit return as well as puts you in a spot to figure out what you can afford nanny-wise.
Above said, HomePay is an expensive option among others in the list and its precise pricing is unknown to us but it is known to give their clients a customized quote based on their needs. Also, their resource guide helps you determine what to pay your nanny & what benefits to offer.
In past Homepay cost above $1000 per year and our bets are it did not have any significant price drops over the last year.
10. Simple Nanny Payroll
Finally we have Simple Nanny Payroll which can be a good option if you are looking for only the basics. It is a DIY service which allows you to calculate nanny payroll taxes and reach out to customer service for tax resources. Basically, you can use it as a nanny payroll calculator.
This service is only meant for people who are in a tight budget and need something simple. Anything more will not be possible here.
Simple Nanny Payroll costs only $29 per year. For the feature set, the price is well justified.
So these are all our pick for the best nanny payroll services. We have tried to include the tools in every price point and features to make it easy for you to choose one. If you need any further information you can always check their website.