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If you want to easily pay for your nanny, you should definitely consider a nanny payroll service. These platforms come with essential tools that help you pay your employee while also complying with state laws regarding employment taxes.
Below, I have evaluated and reviewed four of the best nanny payroll services (for a household employer managing a household employee) available on the market.
- 1 Best Nanny Payroll Service 2022:
- 2 Which Are the Best Nanny Payroll Services? Main Choices
- 3 1. Best Nanny Payroll Overall: Sure Payroll
- 4 2. Cheapest: Payroll by Wave
- 5 3. Savvy Nanny
- 6 4. Best Outsourced: NannyChex
- 7 Other Payroll Service Providers: Honorable Mentions
- 8 SurePayroll vs Paychex for Household Employees
- 9 FAQs
- 10 HomePay vs SurePayroll
Best Nanny Payroll Service 2022:
- Best Overall: Sure Payroll
- Payroll By Wave
- Savvy Nanny
- Simple Nanny Payroll
- Poppins Payroll
- GTM Payroll Services
Which Are the Best Nanny Payroll Services? Main Choices
1. Best Nanny Payroll Overall: Sure Payroll
In our opinion, this is the best overall service when it comes to nanny payroll options. Sure Payroll is affordable and comes with many useful features that all those who hire a nanny will definitely need.
There are different available payroll alternatives provided by this service: autopay, check or direct deposit payment, etc. All compliance resources (workers’ compensation/workers’ comp, tax documentation, unemployment tax, and tax filing, social security, etc…), as well as perks and benefits, are included (e.g. health insurance, 401k options). Moreover, users can easily manage the app from their mobile device.
Sure Payroll Features
This is a cloud-based employee payroll service solution (payroll company) that provides all the necessary features you would expect from this type of service plus some other useful characteristics as well. It only takes five simple steps to complete the setup process which takes no more than 45 minutes tops.
Of course, it can take longer if you don’t gather all the required information and keep it nearby. Sure Payroll ensures an accurate tax filing so you won’t have to worry about penalizations as long as there aren’t any errors.
Mobile Access: The company has developed its own mobile app which allows you to handle everything right from your mobile device. It is compatible with both Android and iOS smartphones and gadgets. There’s a Touch ID feature that enables a quick login. Then, you must provide the nanny’s working hours, and finally, you can preview their activity while also approving the nanny’s paycheck.
On the other hand, employees also have their customized Sure Payroll mobile app that they can use to see paycheck details, deductions, earnings, and taxes. The app also features retirement deductions and federal tax filing details.
Ease of Use: This is a user-friendly and intuitive platform so it’s very easy to use. The dashboard is not cluttered. In fact, it’s straightforward. You must enter certain details like your name, phone number, and email address. Then, you’re required to give your company information before being able to choose certain settings and preferences such as pay period frequency.
The company provides a comprehensive online user guide that you can read to find out more about this service. If you still need additional help, Sure Payroll employees are there to answer your questions via email, phone, or chat.
If you want to use this service, you’ll be required to cover a monthly fee of around $39.99 per employee. If you have more than one employee, you will have to pay an additional 10$ fee per month for every new person that works for you.
Besides these costs, there’s also an extra fee of around $40 which is a one-time payment and it is charged to cover the cost of year-end forms for employer taxes such as Schedule H or Form W-2 income tax calculation (Federal Income Tax). All the platform’s users have full access to all the features of Sure Payroll, without any pricing tiers or limits for household payroll.
All in all, if you only have one nanny, you will pay approximately $524 per year. It’s true that this isn’t very cheap when it comes to nanny payroll services and automatic payroll tax calculation tools, but the company offers great value due to its large range of both basic and advanced features.
Customer Opinions of this Payroll Company for Household Employment
Reviewers have generally positive opinions about this particular payment service for payroll processing. Many people are pleased with the way it works and the fact that it is quite affordable. According to them, it’s a very nice perk to be able to use the tool as much as you want without having to cover extra costs.
One household employer, however, stated that she has encountered an issue with using the app while she was traveling out of the country. Still, she said that the company’s customer service took care of everything and handled the problem professionally.
Nevertheless, some other users complained about poor customer support, saying it is non-responsive.
Sure Payroll Nanny Payroll Pros
- It’s easy to use;
- It comes with a mobile app;
- This is an affordable service for dependent care;
- The reporting is robust and the processing time is short.
- Easy end-of-year nanny employer records for tax credit usage.
- Sometimes, customer support might have some issues in responding promptly;
- The service requires users to use a verification code that is sent to their phone. Otherwise, they aren’t able to fully access the payment tool and this can be a tad annoying.
2. Cheapest: Payroll by Wave
If you’re looking for seasonal employees, then Payroll by Wave is the right nanny payroll service that you need. This is a cloud-based software solution that works perfectly for small businesses. Still, the company provides a complete array of services only to six states (and their state income tax/tax withholding settings).
Employers are able to pay their nannies through direct deposits but they can also pick other alternatives like start-and-stop service or pay payroll taxes (and calculate withholding).
All these are possible without any additional charges. The service works great for those who’re on a tight budget and comes with accounting software and free invoicing.
Payroll by Wave Features
Payroll Service Ease of Use: The nanny payroll software is user-friendly and has an intuitive platform. It will be easy for you to follow the dashboard and you’ll find a very useful to-do list. Two other important advantages are priority placement and large fonts. All these elements make it easier for you to realize how much the following household payroll will be and when you run the payroll process. Users can ask for assistance via email or through the company’s online platform.
Payroll Service Automation: The payroll service transfers the client’s tax payments automatically while also filing the required paperwork when it comes to employee taxes (and employer tax breaks) and the IRS (Internal Revenue Service) but only if you’re located in one of the following states: Florida, Texas, Washington, California, New York, or Illinois.
If you’re based somewhere else, you will have to file the paperwork on your own but the app will still take care of other important aspects. For instance, it calculates exactly the sum that you must pay your nanny and the money that you owe to the state (plus state unemployment tax, etc…).
Payroll Software by Wave Pricing
In order to try the app and see if it works for you, there’s a 30-day free trial. As a user, you will pay between $288 and $468 per year, based on where you live. There are two available pricing plans to choose from:
- Self-service – $20 per month plus an extra fee of $4 per employee;
- Tax service – $35 plus $4 per employee (this one also provides automatic payments and tax filing).
The majority of users like how user-friendly this service is. They say it’s easy to use and has a lot of free features. However, the app can crash from time to time and many states don’t have full access to all the options of this service.
Wave Payroll Pros
- It’s a simple payroll experience;
- There aren’t any hidden fees;
- You can run payrolls in just a couple of minutes;
- The company ensures and guarantees complete accuracy;
- They have very good and professional customer support;
- This is an affordable service.
- Ability to pay as W-2 or independent contractor (1099)
Wave Payroll Cons
- The lack of memo options is a real problem;
- Although it is a speedy service, sometimes you might encounter time-related issues because the app can work a little slow once in a while;
- Certain solutions aren’t very intuitive and require some work and effort.
3. Savvy Nanny
Savvy Nanny payroll provider is the ideal choice for those of you who plan to hire more than one single nanny. Through this service, you will receive the software that you need in order to pay and file both state and federal taxes (sometimes referred to collective as “nanny tax”).
You can also create pay stubs, pay wages through direct deposit, and even download and preview online payroll details because the app syncs with QuickBooks. This is an affordable service and the fees are the same regardless of how many nannies you have hired.
Savvy Nanny Payroll Service Provider Features
You will have access to basic features that are required for compliance and app maintenance. The app allows users to file and pay both federal and state taxes plus some local ones (nanny tax service/payroll tax service). When it comes to paying your nannies, you can do that by either writing checks or via direct deposit.
Ease of Use: The app’s payroll provider interface is intuitive and very easy to use. It will be much easier for you to stay organized while also avoiding missed deadlines due to the platform’s support center and to-do list. The setup process is simplified by the tool’s wizard that guides users through every single step.
Customer Service: Their customer support is not on demand but they have a highly responsive customer service team. You will usually receive a reply with all the clarifications you need within 24 hours since your request. Users can leave voice messages or contact the company via email.
Savvy Nanny Pricing
Savvy Nanny is much more affordable compared to many of the other similar services. Just think about this: most providers will add an extra fee for each employee that you hire. With Savvy Nanny, you can have up to four different nannies without any additional fees.
If you want to hire more than four people, you will have to cover $1.50 per employee. Another great advantage is the fact that there aren’t any setup costs. So, up to four employees, you will pay a flat monthly fee of around $39.
Most of the service providers reviews are positive, centering on how easy to use once it was all set up initially. Clients appreciate how affordable the service is compared to the majority of other household payroll options out there. Many said that Savvy Nanny is a useful tool because it helps them pay the nanny tax and pay their nannies.
On the other hand, it seems that certain individuals may find the setup process a tad complex but still, they are pleased with how the system works due to the app’s wizard feature (which includes an excellent section functioning as an employer’s tax guide).
Payroll Providers Pros
- It’s an inexpensive online payroll service;
- The interface is user-friendly;
- The fee remains the same even if you have multiple employees (but not more than four);
- It’s time-saving and the setup process isn’t that hard.
Savvy Nanny Cons
- Filing local taxes and tax forms isn’t available for all regions;
- If you want to benefit from the free trial period, you must provide your credit card details;
- Customer service lacks phone support and it cannot be accessed on demand;
- This service isn’t available for use in all states.
4. Best Outsourced: NannyChex
This is the best option if you want to benefit from a fully outsourced payroll. It was created for those parents who want to remain stress-free by not handling their nannies’ payrolls at all. NannyChex is fully automated.
In other words, it will do the entire job in your place, from registering users as a household employer in their states to paying tax bills. Compared to this industry’s standard costs, the pricing of this service is average.
NannyChex Payroll Software Features
Payroll Service Ease of Use: This service is quite easy to use. You must insert some details about your identity that are required for the setup: date of birth, full name, your nanny’s name, pay frequency, etc. The company assigns a dedicated personal account specialist who will help you with everything you need regarding nanny tax details, year-end tax details, and your nanny’s payroll. Furthermore, the tool offers simplified reports that feature your employee’s working hours.
Payroll Service Automation: Every feature provided by NannyChex is more or less automated. Even those users that select the Taxes Only payment plan will benefit from the platform’s paycheck calculator which helps users determine how and what to pay. This service is so nicely structured and well-thought that is creates your employee’s account without waking you through the entire process.
Payroll Service Customer Service: During working days, the customer support department can be contacted between 7 a.m. and 5 p.m. You can contact the company’s representatives via email or by phone. There’s also the possibility to use a Contact Us form that they published on the website.
Instead of using a flat rate, the company provides two pricing options. The annual total cost ranges between $695 and $795. Users can select one of the following pricing options: Taxes Only (costs around $695 per year; the payroll assistance is free but users must write their own checks) and Full Service (costs around $795 per year plus some additional processing costs; this package comes with extra features and a greater level of automation).
Most clients like this service and state that it does plenty of useful things without charging too much. One thing that people appreciate the most about NannyChex is its customer support. I was simply unable to find any negative reviews. Probably the main issues could be the one regarding the working hours of the company’s client support.
- With NannyChex, you won’t have to worry about paychecks or payrolls errors;
- It has a simple nanny payroll setup which is easy to complete, especially when you think that some of the users are beginners;
- There’s a live tech customer support via phone;
- You can choose from three available packages: the basic service, the enhanced option (tax and payroll), and the full-service alternative;
- It can be used in all the states.
- Customer support isn’t available around the clock;
- Compared to other similar providers, NannyChex offers fewer customizable features.
Other Payroll Service Providers: Honorable Mentions
These didn’t make our top 4 per se, but are certainly other payroll software solutions we looked at and are on our radar:
- Poppins Payroll: Poppins Payroll is another full-service option that is reasonably priced. They are only in 12 states, but it’s our understanding that they are growing. They also have some great resources if you’re looking to do it yourself, including a nanny payroll guide, state-by-state resources and a nanny contract.
- Simple Nanny Payroll
- GTM Payroll Services
- HomePay (by Care.com)
SurePayroll vs Paychex for Household Employees
Some household employers are confused as to the actual differences between these platforms. After all, Paychex actually OWNS SurePayroll, having purchased it in 2011.
The actual interfaces are quite different, although Paychex does have many of the same features overall.
What separates these two is that SurePayroll has more features, customization, and direct support for household employees, whereas Paychex is more manual and positioned primarily for small to large businesses.
SurePayroll has a specific account class with different reports and views. They also have support staff specifically trained in the household employer use case, whereas Paychex is more of a general payroll service that can be configured to work as a nanny payment service.
Bottom Line: We went with SurePayroll as the more tailored solution for our nanny.
Answer: Yes, you need an employer identification umber (EIN) to legally employ a nanny as a household employer.
Answer: While you can avoid the hassle of paying taxes or dealing with paperwork, paying your nanny under the table exposes significant legal risk and is not recommended.
Answer: We recommend using a nanny payroll service to avoid complexity and ensure your nanny is paid properly.
Answer: Yes, if you hire a nanny as a household employee, you as the employer would be responsible for paying payroll taxes.
HomePay vs SurePayroll
We frequently get asked to compare SurePayroll vs HomePay, as these are two of the most popular options (by market share).
HomePay is technically a part of Care.com and their suite of products for household employees, after being acquired in 2012. There’s definitely a strong convenience factor IF you use Care.com to have the same company handle the payroll as well.
Be here’s the issue. HomePay is among the MOST EXPENSIVE solutions for household employers.
SurePayroll is the best nanny payroll service.