I bet when you started thinking about hiring a nanny, you thought the most challenging part would be finding the perfect candidate.

But now that you have found your real-life Mary Poppins, you are going to hit reality.

You need to set up payroll to make sure that you are in compliance with all the state and federal tax legislation. To start, you have to get a federal Employer Identification Number, so you can pay their taxes. This means you must complete the correct documents to report the new hire to your state government. Centered on where you live, you may need to get workers’ compensation insurance. At the end of the fiscal year, you must file all the tax paperwork to the IRS and distribute the right forms to your employee so they can track their taxes.

And you thought hiring a nanny was going to simplify your life!

Here’s the upside, though……. it’s not hard to find payroll software or services that handle just about every aspect of paying your nanny(or gardener or house cleaner). Continue to find out some of our favorite nanny payroll services for household employers.

SurePayroll

Do you need a nanny payroll service that takes just about everything off your plate without making you pay through the nose? Check out SurePayroll. It’s a cloud-based nanny payroll service that has affordable monthly payments. Some of the features include:

• Automatic state, local, and federal tax filing
• New-hire state reporting
• Automated payroll runs
• Automated direct deposit
• Online employee pay stub access

SurePayroll has a 100% tax filing guarantee. This means if it makes a mistake filing your taxes, it’ll deal with fines and penalties from the IRS! It also has a mobile app for the convenience of paying your nanny from your phone.

NannyChex

 

This is a fully outsourced payroll service that handles payroll taxes, sick time, and vacation tracking, EIN setup, and tax agency correspondence. All you need to do is enter basic employee and pay rate information, then your good to go.

This isn’t software, it’s a fully outsourced service, where you enter your information online, and the service takes care of the rest:

• Automatic tax withholding and filing
• Direct deposit
• New hire reporting
• Employer Identification Number setup
• Workers compensation audits
• Sick time, vacation time, and paid-time-off tracking
• Tax agency correspondence.

You definitely pay for these services, but it doesn’t have any sign-up fees, and you can cancel the service anytime. NannyChex also archives your tax documents for up to five years and acts as a point of contact if the IRS comes calling.

Payroll by Wave

Payroll by Wave is a completely free stand-alone accounting software, and it’s payroll plans are cheap. It’s limited in some aspects – it can’t file taxes for you in 41 states. But it does most other actions for an affordable $20 a month.

• Automatic payroll tax calculation (not filing)
• Guaranteed payroll tax accuracy
• Direct deposit or check printing
• Employee self-service portal
• Automatic payroll reminders
• Workers compensation add ons

This is one of the most affordable nanny payroll software options available but limited in its capabilities and service.

Poppins Payroll

This service is currently limited to just a few states. Still, it’s a powerful up-and-coming service with extensive bookkeeping and extremely user friendly. It is on par with SurePayroll for cost and services and takes on the following tasks:

• Employer Identification Number registration
• New-hire paperwork filing
• Direct deposit
• Automatic electronic tax filing
• Digital bookkeeping

Poppins Payroll has an intuitive interface that is easy to navigate and even more helpful for first-time household employers who want to make sure they check all the boxes.

 

With the perfect nanny payroll service, your household hiring can make your life so much easier. Once you take the headache of taxes and the nightmare of complicated bookkeeping off the table, you can focus on your children’s happiness.

 

Disclaimer: [Nannies And Kids United] does not advise on any personal income tax requirements or issues. Use of any information from this site or any other website referred to is for general information only and does not represent personal tax advice either expressed or implied. Many variables can affect your tax issues, and tax laws change frequently. You are encouraged to seek professional tax advice for personal income tax questions and assistance. These sites are suggested to help you with your research.

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