If you recently hired a nanny, gardener, or private in-home nurse, the federal government considers you a household employer. Like any other type of employer, you must withhold payroll taxes from your workers’ paychecks, pay the federal unemployment tax, and pay the employer half of an employee’s Medicare and Social Security taxes (FICA tax).
These complicated financial tasks can be hard to understand. That’s why many families choose to use nanny payroll software that calculates and files payroll taxes on their behalf.
To help you find the right nanny payroll services for your family, I compared seven providers and narrowed the list down to my top picks:
Top nanny payroll services compared
The best nanny payroll service is not always the cheapest one. New household employers may get more value from a provider that includes tax account setup and year-end form preparation, while experienced employers may prefer a lower-cost option with lighter support.
Tip: For a full-service option with predictable pricing, start with Poppins Payroll. If price is the deciding factor and your setup is straightforward, consider SurePayroll. If you want more payment options, help with staff onboarding, or deeper support around household payroll, HomeWork Solutions, HomePay, and GTM Payroll Services are stronger fits, respectively.
Poppins Payroll: Best overall nanny payroll service
Poppins Payroll is a straightforward nanny payroll service for families that want help with household payroll taxes without buying into a more expensive concierge-style model. Its biggest advantage is simplicity: one low monthly price, a focused feature set, and support for the core household-employer tasks most families need.
I found it useful for first-time household employers who want payroll, tax payments, quarterly filings, and year-end documents handled in one place. Poppins also supports direct deposit or employer-issued checks, which provides a little more payment flexibility than some lower-cost competitors.
Why I chose Poppins Payroll
I chose Poppins Payroll as the best overall nanny payroll service because it gives families a strong balance of cost, coverage, and ease of use. It may not have the extensive services that some providers on my list offer, but that’s part of the appeal. For many household employers, the right tool is the one that handles the tax basics cleanly, keeps fees predictable, and does not turn nanny payroll into a second job.
I also like that Poppins tracks paid time off and sick leave balances, allowing families to check available PTO without using a separate spreadsheet. It even stores payroll and tax documents for five years, which makes it easier to find past pay stubs, tax forms, and payment records when needed.
Pricing
Poppins Payroll charges a flat monthly fee of $49 for one employee. If you have more than one household staff member, each additional employee costs $10 per month.
Apart from SurePayroll, Poppins Payroll has the fewest add-on fees of any nanny tax service on my list. In contrast to most other payroll solutions, it has a one-month free trial without charging fees for new client setup, end-of-year tax preparation, or direct deposits.
Features
- Federal Employer Identification Number setup
- State tax account registration assistance
- Automatic state new-hire reporting
- Automated payroll with multiple pay frequencies
- Direct deposit and employer-issued check options
- PTO and sick leave tracking
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SurePayroll by Paychex: Best for affordable nanny pay runs
SurePayroll is an affordable, fully featured option for those who want every aspect of nanny payroll taken off their hands. At $39/month — the lowest on this list — it automates tax filing, paycheck calculation, direct deposit, and state new-hire reporting. That makes it practical for families with a straightforward payroll setup, especially if they have one household employee, a recurring pay schedule, and limited need for custom guidance.
It also generates a signature-ready Schedule H tax form at year-end. Plus, its nanny payroll service is backed by Paychex, one of the largest payroll processors in the country.
Why I chose SurePayroll
SurePayroll stands out because it combines affordable nanny payroll with practical automation. You can create a pay schedule and let the platform run payroll automatically, which is useful if your employees have different hours and pay rates. Even if you don’t use its autopilot function, SurePayroll has a simple, three-step process that lets you run payroll via a computer or its mobile app.
While it doesn’t have 24/7 customer service, its support team is based in the U.S. and is available evenings and weekends. You also don’t have to sign a year-long contract to use its nanny payroll software; instead, you pay month to month, which gives greater flexibility to household employers who hire workers seasonally.
Pricing
SurePayroll’s nanny payroll service costs $39 per month for one employee. Similar to Poppins Payroll, it charges a $10 per month fee for each additional employee.
It’s also one of the providers on my list that doesn’t charge extra fees for account setup, year-end tax form preparation, or tax remittance to the IRS. I also like that it often offers a special promotion, where new customers can get six months free for a year-long subscription.
Features
- Two-day direct deposit
- Unlimited payroll
- Autopilot pay run feature
- Automatic federal, state, and local tax filing
- Automatic state new-hire reporting
- Signature-ready Schedule H tax form generation
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HomePay is a nanny payroll service owned by Care.com. Along with automatic paycheck calculation and payroll tax remittance, the provider files new hire state reports and onboards employees on your behalf by collecting the required information, bank details, and W-4 forms to set up their HomePay accounts.
After day one, your employees can contact HomePay directly for support without routing questions through you first. If you want a fully managed experience from the start, this level of delegation gives you more time to handle other tasks that come with managing household help.
Why I chose HomePay
Hiring a nanny already comes with enough moving pieces: start date, schedule, pay rate, duties, house rules, and maybe a nervous child or two. HomePay’s value is that it takes some of the payroll onboarding admin off your plate before the first paycheck is due. That also makes it a good fit for first-time household employers who want more structure during the awkward setup stage.
Plus, you don’t have to worry about missing state tax notices or answering federal agency questions. HomePay receives and manages these notices on your behalf, so you have one less compliance task to track.
Another feature that caught my attention is HomePay’s “happiness guarantee” for new clients, where the provider will refund service payments if it doesn’t meet expectations during the first six months. I didn’t find a comparable satisfaction guarantee from the other providers on my list.
Pricing
HomePay starts at $59 a month for basic services, which include employee onboarding, tax preparation and remittance services, and payroll management with direct deposit payouts.
For $75 per month, you can sign up for its premium plan, which includes additional access to dedicated phone support, tax ID setup for new employers, and state tax notice services. You even get the first month free with this plan.
HomePay also has a service for end-of-year tax preparation, which includes Schedule H, 1040, W-2, and W-3 tax-form preparation.
Features
- End-of-year tax form preparation
- Integration with HomePay’s time tracking software
- Automatic payroll runs
- Direct deposit payouts
- State new-hire reporting
- Employee setup assistance
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GTM Payroll Services: Best for expert nanny payroll support
GTM Payroll Services handles the core nanny payroll and tax tasks families need, but it also layers in household employment guidance that goes beyond basic paycheck processing.
In addition to new hire reporting, tax ID setup, time and leave tracking, and tax notice support, you get unlimited audit support, insurance risk review, and household employer management consultations. It even has certified household HR advisors who can review job descriptions, offer letters, and work agreements to ensure compliance.
If your state requires you to have workers’ compensation insurance, GTM can match you with an insurance provider and integrate your premium payments with payroll. This can save you hours of separate research, applications, and premium tracking.
Why I chose GTM Payroll Services
What I like most about GTM is the depth of client support it offers. Instead of only answering nanny payroll questions, GTM gives families access to HR professionals, licensed insurance brokers, and household employment tax experts who understand the compliance details that come with hiring and paying household help.
It also goes the extra mile to help you understand your role as a household employer. Educational materials on GTM’s website include how-to videos, information on creating an Employer Identification Number, a free nanny paycheck calculator, a guide to household workers’ rights, and a list of household employer obligations by state.
For families that want expert support and a better understanding of nanny payroll rules, GTM is one of the stronger options in this guide. However, many of its deeper HR and compliance services are available only in higher tiers. If you have simple nanny payroll needs, consider either Poppins Payroll or SurePayroll.
Pricing
For nanny and household payroll services, GTM offers three plans:
- EasyPay Tax & Payroll: Starts at 70/month for one employee + $20/month for each additional worker
- Includes employer setup, new hire reporting, automated payroll, tax filings, and unlimited audit support
- EasyPay HR Platinum: Starts at $127/month for one employee + $40/month for each additional worker
- Tax & Payroll features plus expanded household HR support, employee expense reporting, and access to a dedicated account management team
- EasyPay Diamond: Starts at $227/month for one employee + $60/month for each additional worker
- HR Platinum features plus retirement plan options, custom employee benefits package consultation and design, and help with health, dental, and vision insurance enrollments
What I don’t like about GTM is that it charges a setup fee of $75 and requires at least a 12-month contract if you sign up for either its HR Platinum or Diamond plans. Year-end tax reporting is also an optional service, but it’s unclear if this costs extra.
Other paid add-ons include:
- Time and leave management: $20/month
- Household employer insurance risk review: $250
- Access to a certified household HR advisor: Extra fees may apply; call for a quote
- Access to benefits plans/policies: Call for a quote
Features
- Autopilot option to automatically run payroll on a schedule
- Direct deposit payouts
- Guided employee self-service onboarding through an online portal
- Unlimited audit support
- Optional employee benefits, including health, vision, and dental insurance
- Support by phone, email, and chat
Pros and cons
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HomeWork Solutions: Best for flexible payment options
While most nanny payroll service providers limit you to one payment option, HomeWork Solutions offers more control over how you can pay household employees. It supports payouts via direct deposit, live checks mailed to the worker, or direct check payments from you. That flexibility can be useful for households with part-time caregivers, temporary arrangements, or employees who prefer a specific payment method.
Its platform is simple to learn and use, and it automatically calculates payroll taxes and employee wages while securely maintaining all pay-related records online. Depending on the plan, its services can include tax notice management, timecard tracking, on-demand payroll reports, direct deposits, paycheck services, and access to a dedicated payroll specialist.
Why I chose HomeWork Solutions
Beyond payment flexibility, HomeWork Solutions made my list because of the dedicated one-on-one support it offers in higher tiers. that it offers. Complete plans include a dedicated payroll specialist, while Premier adds a dedicated tax coordinator, giving families a clearer point of contact for payroll and tax questions.
The trade-off is cost and pay scheduling. HomeWork Solutions uses quarterly billing rather than monthly, and the setup and year-end filing fees add significantly to the plan price. Payroll runs are also restricted to weekly or bi-weekly schedules, which limits flexibility compared to competitors offering unlimited runs on any cadence.
Pricing
HomeWork Solutions has three plans:
- Essential Tax: $195/quarter for one employee + $69/quarter for each additional worker
- Includes new employer setup, payroll and tax calculations, tax filings, and year-end reports, and employer-issued paychecks
- Complete Payroll + Tax: $249/quarter for one employee + $69/quarter for each additional worker
- Essential Tax features plus direct deposit payouts, paycheck services, web-based timecard tracking, workers’ compensation insurance referral, tax notice support, a secure online portal, and access to a dedicated payroll specialist
- Premier Payroll + Tax + HR: $389/quarter + $69/quarter for each additional worker
- Complete Payroll + Tax features with on-demand payroll reports, live client and employee onboarding, weekly pay runs at no extra cost, and a dedicated tax coordinator
HomeWork Solutions also charges a $125 fee for year-end payroll tax filing and a $120 setup fee for new users.
Features
- Automatically generated Schedule H and W-2 forms
- Federal Employer Identification Number setup and state new-hire reporting
- Employee text alerts
- Thorough tax administration
- Timecard tracking
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Also see: Payroll Tax Forms and Deadlines for Household Employers
What are the key features of nanny payroll services?
While there are key differences between payroll solutions, most nanny payroll services should include a mix of the following features.
1. Automatic tax calculation and remittance
If you’re comfortable filing taxes yourself and prefer to save money on nanny software, you can find cheaper DIY tax software options (or even free payroll solutions) that calculate paychecks and tax deduction amounts, but leave the actual filing up to you.
However, figuring out the nanny tax is hypothetically the most burdensome part of hiring a household worker. Consider prioritizing nanny tax software that calculates and files taxes for you.
2. Multiple employee pay options
Most payroll software solutions include direct deposit as their main employee payment method. However, while direct deposit is one of the simplest ways to pay your employees on time, it’s not always the best option for all employers and employees. If you want to offer more payment options to your employees, look for software with direct deposit, paper check, and even prepaid debit card options.
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3. Time-tracking integration
Like other employees, household workers are entitled to overtime if they’re paid hourly and their work week exceeds 40 hours. Time-tracking software is the easiest way for both you and your employees to make sure workers are being compensated for their actual hours worked while keeping you compliant with federal law. Some time-tracking tools also let you set up paid time off and sick leave policies based on your employees’ hours worked.
4. Employee benefit add-ons
While household employers aren’t legally obligated to offer employee benefits like health insurance and 401(k) retirement plans, some choose to offer benefits to attract top talent or retain employees.
5. Customer support
Your nanny payroll company’s customer support team should be available to help both you and your household employees. Ideally, your team is available round the clock or else on an extended schedule that includes weeknights and some weekend hours. You might also consider choosing a nanny tax service that works directly with your employees to set up their time tracking and payroll software.
6. Employee self-service portals
Employees need to access their tax data, hours worked, pay stubs, and direct deposit information. Usually, the most convenient way for them to do so is through a mobile app, or at least through a mobile-friendly website. Whether through an app or website, employees should be able to manage their own data independently.
How to choose the right nanny payroll service
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. Don’t forget to look into sneaky add-on fees, especially setup and end-of-year tax-filing costs, and include those in your overall nanny payroll budget.
Next, look at features. Would you rather have software that automatically runs payroll on a pre-set schedule, or would you prefer to run payroll yourself each pay period so you can double-check for accuracy? Do you value tools like mobile payroll apps, or are you happy enough with an online interface only? Asking these types of questions can help you narrow down which payroll software is right for you.
Methodology
To create this guide, I only looked at payroll software with household employment options and at nanny payroll-only companies. Then, I evaluated each provider using the following factors:
- Price, whether the number of features warranted the cost, and if there were any add-on fees
- Nanny payroll features like Schedule H form generation, FUTA tax administration, and household employer HR resources
- General payroll software features like direct deposit, free unlimited payroll runs, and mobile payroll tools
- Ease of use, customer service hours and availability, dashboard and user interface, and tax accuracy guarantees
To gather this information, I thoroughly checked each provider’s website to get pricing and plan information. I also read customer reviews on reputable review sites and looked at YouTube how-to videos whenever they were available.
Frequently asked questions
Why do I need nanny payroll services?
If you employ a nanny, the IRS considers you a household employer. That means you may need to withhold and pay Social Security and Medicare taxes, pay unemployment taxes, prepare year-end forms, and keep payroll records.
A nanny payroll service can calculate paychecks, withhold taxes, file required payroll tax forms, prepare W-2s and Schedule H, and help you stay organized. The most comprehensive services also handle state tax notices and employer account setup.
In short, having a nanny payroll service can ensure you pay your nanny on time and fulfill your new tax obligations with as little stress as possible.
Can I use a regular payroll service for my nanny?
No. Regular payroll services are intended for businesses and don’t offer the features household employers need to pay their employees. However, some business payroll providers, like SurePayroll, offer nanny-payroll versions of their regular software.
Should I give my nanny a W-2 form or 1099 form?
A nanny who works in your home and whose work you control is typically treated as a household employee, not an independent contractor. So, you should give a W-2 form, not a 1099 form.
Can I do nanny payroll myself?
Yes, you can do nanny payroll yourself if you’re comfortable calculating wages, tracking hours, filing payroll taxes, preparing year-end forms, and keeping accurate records. DIY payroll may save you money, but you’ll be responsible for deadlines, tax notices, and fixing mistakes. A nanny payroll service can help if you want someone else to handle the tax details and keep the process organized.
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