7 Best Nanny Payroll Services for Household Employers in 2022

As the number of households increases, the need for nanny services is also growing. This article will provide information on some of the best payroll services available in 2022.

Families that do not want to handle payroll on their own should choose a reliable nanny payroll provider. The finest nanny payroll services make sure you’re in compliance with all federal, state, and local tax laws. It has features tailored to home workers, such as a self-service site and the option to submit Schedule H forms online.

We compared a dozen nanny payroll services, including free and low-cost do-it-yourself alternatives, and selected the top seven nanny payroll services that include the above-mentioned features.

• Paychex: Best overall nanny payroll service.
• HomePay: Best for household employers looking for a hands-off approach to nanny payroll processing, tax, and HR services.
• Patriot Payroll: Best for families that just need assistance with payroll and tax computations.
• SurePayroll: For families on the go who need to handle penalty-free assured payroll on the go.
• ADP Run: Best for households in need of a payroll solution with a flexible and customized price plan.
• Savvy nanny: Best for parents who need to pay several nannies or carers.

The Process of Selecting the Top 7 Nanny Payroll Services

We evaluated over a dozen nanny payroll programs to the characteristics we think are most essential for people who hire domestic workers. We looked at companies who provide a range of flexible, reasonable price choices for the typical family, as well as higher-end suppliers for those looking for a complete service. We also looked for payroll and tax features unique to nanny payroll, as well as characteristics that make the service simple to use, because most home employers have little expertise with payroll processing.

We were able to reduce our list of a dozen suppliers to just seven, with Paychex coming out on top. It offers a low-cost nanny payroll solution to families. It creates a Schedule H form, which is needed to file household employment taxes, files taxes, and pays the nanny. It also offers a mobile app via which your nanny may see pay stubs.

35% of the overall score

Automatic payroll runs, direct deposit with the ability to process paper checks, and access to tax payment and filing, including year-end forms filing, were given priority (W-2 and Schedule H). We recognize that families seeking assistance with nanny payroll often need the greatest assistance with tax filing, payment, and reporting. In our review of the seven suppliers, HomeWork Solutions came out on top with a 4.25 out of 5 rating for payroll features. This is unsurprising given that its primary service is nanny payroll and it has been in business longer than the other companies on the list.

30% of the overall score

Payroll software and services should be simple to use and set up, with a user-friendly interface. Those that offer a dedicated representative, as well as employer ID and tax set-up help, get full points. Extra points are awarded if the supplier provides live phone assistance that addresses problems quickly. Paychex and HomeWork Solutions received the best marks in terms of user-friendly features. Both have specialized agents who will help customers at any time, in addition to the standard features to offer the greatest user experience.

20% of the overall score

Monthly implementation expenses, processing charges, and set-up and year-end fees were also examined. Providers that don’t pinch and dime families and supply the basics, payroll taxes, and employee paychecks at a fair cost were given preference. Pricing is a key issue for home employers; with Patriot, the cheapest of the seven nanny payroll software options mentioned, you’ll receive excellent service at a low cost.

10% of the overall score

We prefer suppliers that enable workers to complete online onboarding, as well as those who give a self-service portal for nannies to see payments, update information, and/or print documents. It’s also preferable if the supplier has specialists on staff who can assist users on regulatory problems and offer workers’ compensation and other perks for your home employee. Another aspect that sets Paychex apart from the competition is its HR capabilities, which will make it much easier for home businesses to manage their workers.

5% of the overall score

On a 5-star scale, we evaluated user evaluations, including those from our rivals; any choice with an average of 4+ stars is excellent. In addition, any program having 1,000 or more reviews on a third-party website is recommended. Paychex is one of the most popular nanny payroll software options on the market, thanks to its user-friendly interface and quick support staff.

Paychex

PROS

• Payroll processing is available both online and on the go.
• Payroll money may be deposited online.

CONS

• You must pay for year-end tax report preparation and delivery through the internet (W2s and Schedule H)
• Nanny payroll incurs additional federal taxes.
• Issues with third-party integration

Total Points 4.40 OUT OF 5

Paychex received the best score of 4.40 out of 5 among the nominated suppliers in our assessment. Paychex offers specialized payroll experts as well as employment and income verification services to enhance your nanny payroll experience, in addition to standard payroll and HR capabilities. It’s also available online or through a mobile app, ensuring quick and efficient payroll processing. Paychex also includes new hire reporting, accounting and HR productivity tools, benefit administration (retirement and health plans), and time tracking connections to help you do more for your nanny.

However, utilizing Paychex for nanny services has the disadvantage of costing more for federal tax filing than using Patriot, SurePayroll, or HomeWork Solutions. It will also charge you extra for submitting year-end reports (W-2s and Schedule H). It does, however, provide a self-service portal via which your nanny may see pay stubs and personal information. You may even contact their live phone support 24 hours a day, 7 days a week if you need assistance. Furthermore, real-time customers complimented the company’s user-friendly website and quick paycheck delivery. The only issue they mentioned was that payroll experts are occasionally unresponsive, and third-party integrations have significant problems.

Features

Paychex price for nanny payroll is personalized since it is a one-of-a-kind service. To get a quotation, you must contact the company’s sales department. Employers that are interested may sign up for a month of free service.

• Paychex’s fast and versatile payroll processing capabilities include the ability to execute limitless payrolls utilizing a desktop computer or mobile device with only two clicks (for iOS and Android). There are three distinct pay input methods available, including a grid layout for fast data entering. Paychex, like Patriot, allows for a variety of pay rates and incentives.
• Paychex will assist you in setting up your tax account, similarly to Patriot and HomeWork Solutions. It also assists with submitting state and local taxes, similar to ADP Run, although it will cost you extra if you want Paychex to handle your federal and year-end tax returns.
• Employees may be paid in a variety of ways, including direct deposits and paper checks, similar to ADP Run. Both services also include check signature and printing.
• It offers a full suite of HR solutions and services, including new hire reporting and onboarding, time and attendance monitoring, employee benefits, workers’ compensation, garnishment payment services, company insurance choices, and recruiting services, in addition to payroll.
• Paychex’s People View is a free online and mobile self-service portal where you can add your nanny and encourage them to log in and perform tasks like updating their personal information and tax withholding. It also offers a free mobile app for both iOS and Android, something none of the other suppliers offer except ADP Run.
• Paychex offers a staff of compliance experts and payroll professionals, similar to HomeWork Solutions, who may give informed guidance on tax and labor laws for a charge. If you’re on a budget, you may take advantage of the company’s free 24/7 customer service and technical assistance by phone or chat.

HomePay

PROS

• Accounts for federal and state taxes are set up.
• PTO accruals and other reimbursements are tracked.
• Experts on staff to provide compliance advice
• Payroll and tax data are accessible online.

CONS

• There is no mobile application.
• Isn’t responsible for preparing, filing, and remitting municipal taxes.
• There is no accounting integration available.
• Tax preparation towards the end of the year is more expensive.

Total Points 3.88 OUT OF 5

HomePay received a 3.88 out of 5 rating in our review, despite being more expensive than the other suppliers. HomePay also monitors PTO accruals for you and gives you lifelong access to payroll records and pay stubs, in addition to its payroll and HR services. You may also depend on HomePay for limitless assistance from a team of home employee payroll specialists for you and your workers.

It also offers a no-penalty tax assurance (Service Accuracy Guarantee) and a refund program (Happiness Guarantee) to ensure correct computations and payment, as well as great service. HomePay, on the other hand, only files federal and state taxes, and, like Paychex, you must pay extra for year-end tax preparation. It also has a poor popularity rating due to the lack of user reviews.

Pricing

There are no startup costs and you’ll pay $59 per employee each month (paid quarterly). It’s a fixed fee of $100 to have your year-end tax forms filed.

Features

• Employee setup is hassle-free: Despite being more expensive than Patriot and SurePayroll, HomePay, like other companies, does not charge a setup fee. It will gather your nanny’s personal information, W-4 withholding elections, and even bank account information for you with only their email address.
• HomePay provides robust payroll administration by automatically calculating and facilitating employee payment through direct deposit or handwritten payout. It will also compute and deduct any relevant taxes or payments due for each pay period.
• HomePay, like Nanny with a Sense of Humor, will assist you in setting up your tax accounts with the federal and state tax authorities alone. It will also keep you informed about federal and state tax deadlines, as well as assist you in preparing and filing tax forms. HomePay will also take care of your basic record-keeping.
• HomePay provides online onboarding in addition to new employee reports. You’ll be able to keep track of PTO and reimbursements as well.
• HomePay’s self-service site enables you to have lifelong access to payroll data, despite the fact that it does not offer a mobile app like Paychex, Patriot, or ADP Run. You’ll be able to see employee pay stubs as well.
• The Service Accuracy Guarantee and the Happiness Guarantee guarantee customers that any tax penalties incurred as a result of mistakes made by HomePay agents will be covered by the supplier. The Happiness Guarantee, on the other hand, is a six-month money-back guarantee for customers who are dissatisfied with HomePay’s service quality. Non-sufficient funds fees, credit card processing fees, and payroll reversal costs are not included. None of the other companies on our list provide this service.
• On weekdays, you may contact HomePay’s customer service via phone, chat, or email.

Patriot Payroll

PROS

• Low cost
• You have the option of paying with handwritten checks or direct deposit.
• There’s a smartphone app included.
• It works in tandem with its accounting software as well as QuickBooks.

CONS

• Doesn’t provide any advantages
• Year-end report preparation is only available with Full Service, which comes at an additional fee.
• Reporting is restricted.

Total Points 3.84 OUT OF 5

Patriot is the most cost-effective nanny payroll service on the list, receiving a 3.84 out of 5 rating in our review. It provides full-service payroll as well as a do-it-yourself alternative for $10 per month plus $4 per employee if you want to file your taxes. It’s popular among small business owners since both subscriptions allow for limitless payroll runs from any device, as well as various payroll intervals and adjustable hours, money, and deductions. You have the option of paying your home staff through direct deposit or handwritten checks.

Similar to SurePayroll and HomeWork Solutions, its full-service package allows you to file and pay all federal, state, and local taxes regardless of location. Patriot, like most other suppliers, guarantees that there will be no penalties. Patriot customers gave it high marks for simplicity of use and quick customer service, despite the fact that it does not compare to Paychex in terms of HR services. It also offers cost-effective options that would appeal to any home employer, as well as a one-month free trial (the same as Paychex).

Pricing

• Basic: $10 per month plus an additional $4 per employee (payroll only)
• $30 per month + $4 per employee for full service (payroll and tax compliance)

Unique Features

• Free payroll setup: Patriot’s setup is free–with the exception of Homework Solutions and ADP Run, most other suppliers provide free setup as well. Patriot will simply ask for information and set up your paycheck, or you can do it yourself using its payroll setup wizard.
• Patriot’s flexible payroll system enables you to conduct an infinite number of payrolls and pay your workers at various intervals, even in separate places. You may also utilize its pre-defined hours and money types or build your own, complete with employee deductions and contributions, for free.
• Self-service and full-service plan options: If you’re on a tight budget, you may simply choose Patriot’s Basic plan and have it handle your payroll while you file your workers’ taxes on your own. You will, however, have to pay an additional fee to submit your 1099s ($20 for up to five workers). If you need additional tools to assist your company cope with taxes, Full-Service Payroll is the way to go. However, unlike HomePay, SurePayroll, HomeWork Solutions, and Savvy Nanny, Patriot does not deal with Schedule H.
• You have the option of paying your nanny through direct deposit or handwritten checks. The usual processing time is four days, though (longer than the others on our list). If you wish to process it in as little as one day, you may choose to pre-fund your Patriot account each time payroll is completed, in advance of the next pay run. If your employee prefers to be paid by check, you may handwrite or print checks directly from the program, just like you do with HomePay, SurePayroll, and ADP Run.
• Patriot provides you with easy access to all of your tax returns, tax payments, and even your donation history. Each report may be filtered by tax year, filing date, and other criteria, and the data can be downloaded or exported as a CSV or PDF file.
• Tax Penalty Guarantee: Patriot guarantees that your taxes will be computed and submitted on time, much as HomePay and SurePayroll. Patriot will settle and pay for any issues that arise as a result of their representatives’ mistakes.
• Patriot, like Paychex, offers live phone assistance staffed by professionals. Monday through Friday, from 8 a.m. to 8 p.m., this service is available. You may also contact us through email or live chat.

SurePayroll

PROS

• Employees are paid in a variety of ways.
• Pricing that is clear
• Guarantee of no tax penalties

CONS

• There are no free state registrations or federal tax IDs available.
• W2s and Schedule H forms come at an extra fee.
• There are no expert advisors available.

Total Points 3.82 OUT OF 5

SurePayroll is a cloud-based, inexpensive home employer payroll solution that has all the tools you might need to handle your nanny payroll. It’s just a few points behind Patriot. You may use it to perform limitless payroll runs, withhold and pay federal, state, and local payroll taxes, and pay your nannies through direct deposit or printing checks. It simplifies payroll management and tax compliance. However, it does not include the creation of a federal tax ID, and you must pay an additional fee to have SurePayroll submit your W2s and Schedule H forms.

SurePayroll still offers more strong features in our assessment than other suppliers in the market, with a 3.82 out of 5 rating. It provides nannies with mobile access to their payroll data at a fraction of the cost of certain outsourced payroll systems for home employers. It also provides new hire reporting and a promise of no tax penalties to ensure correct tax filing. SurePayroll’s software is easy to use, according to real users. So far, the only concerns have been about its excessive security verification function, which necessitates several log ins, and occasional system problems.

Pricing

SurePayroll’s nanny payroll service costs $49.99 per month plus $10 per employee per month, and it covers payroll and tax compliance. SurePayroll’s two-day direct deposit processing time is quicker than Patriot’s four-day direct deposit processing time.

Features

• Payroll setup is free, and you may conduct payroll in as many states as you want: There are no startup costs with SurePayroll. You may start an infinite number of pay runs with minimal preparation effort, and taxes and benefit premiums will be deducted correctly. Multiple pay rates are supported by the system, and bonuses are incorporated.
• Employee benefits: Similar to Paychex and Patriot, SurePayroll provides employee benefits in all 50 states, including Social Services, Medicare, and Unemployment State Insurance.
• Automated tax payment and submission of year-end reports: Unlike other providers that simply automate federal and state payroll taxes (e.g., HomePay and Savvy Nanny) or state and local taxes (e.g., ADP Run), SurePayroll automatically withholds, pays, and files taxes on the federal, state, and local levels for free, ensuring that you remain tax compliant. A user must pay an extra $9.99 each month to calculate and submit municipal taxes in Ohio and Pennsylvania.
• Integrations with third-party software suppliers that are robust: It integrates with QuickBooks Online, Xero, Intacct, AccountEdge, Less Accounting, Zoho Books, and Sage 50-US Edition accounting software.
• Only SurePayroll offers Spanish-speaking customer service (in addition to English) accessible by chat and phone Monday through Friday from 7 a.m. to 8 p.m. Central time, and Saturday from 9 a.m. to 1 p.m. Central time.

HomeWork Solutions

PROS

• Provides free HR advice.
• Direct deposit, live check, and direct payment from the employer are all options.
• Expertise in nanny payroll
• There are many plan choices available.

CONS

• Employers are responsible for the setup and year-end costs.
• The cost is based on a single employee payroll.
• It takes five to seven days to set up.

Total Points 3.66 OUT OF 5

HomeWork Solutions (HWS) is a one-stop shop for payroll and tax compliance. It provides immediate payment from the employer, in addition to direct deposit and a live check sent to the employee, unlike all other suppliers. It also takes care of your federal, state, and municipal taxes. HomeWork Solutions includes a setup charge, and the year-end report is also an additional expense for budget-conscious businesses. Apart from that, both the Essential and Complete Payroll plans are only for one employee.

HomeWork Solutions, which received a 3.66 out of 5 in our review, is similar to Paychex in that it has a dedicated payroll agent. It also provides free HR advice and online management for both employers and employees. Aside from that, you’ll get limitless phone consultations with the company’s in-house tax specialists for the most up-to-date domestic employment rules and regulations. It does not deal with workers’ compensation, but it does produce Form 1040 Schedule H and W-2. Despite the fact that there were few evaluations, customers praised HWS for its dependability and promptness when problems arose. Others acknowledged that it is very costly when compared to other carriers, and that customer service may be difficult to reach at times.

Pricing

• Payroll Requirements: $150 each quarter
• Complete Payroll: $200 per quarter (biweekly) or $225 per quarter (weekly).
• $100 for year-end tax filing (1099).

Unique Features

• Nanny tax compliance expertise: HomeWork Solutions, like SavvyNanny, focuses on delivering genuine solutions for nanny tax compliance to home employers, as opposed to other suppliers that serve other sectors.
• HomeWork Solutions provides automated payroll, which pays workers through direct deposit, live check sent to the employee, or direct payment from the business.
• HomeWork Solutions handles employer account setup with the IRS and appropriate state tax authorities, which is something you won’t find in low-cost general payroll software; HomePay is the only other one on our list that does. It also completes all employment tax forms, filings, and payments on a quarterly basis. It works similarly to Patriot and SurePayroll in that it automatically files and pays employment taxes in all 50 states (federal, state, and municipal).
• HomeWork Solutions, like Patriot, offers both a do-it-yourself (Essential) and a full payroll option. You may select between weekly and biweekly payroll frequency with HWS’s comprehensive payroll plan. Similar to Paychex, it too has a specialized payroll agent.
• Only HomeWork Solutions’ clients have access to free HR advice to understand and fulfill employment requirements among our evaluated nanny payroll suppliers. It also guarantees that employers follow state-specific new hire reporting requirements. Similar to Paychex, Patriot, and ADP Run, HomeWork Solutions may link customers with insurance providers to help with workers’ compensation needs. HomePay and SurePayroll, on the other hand, provide in-house workers’ compensation insurance and other benefits (at an additional fee), while Savvy Nanny does not.
• Dedicated account representative and limitless concierge support: HomeWork Solutions, like Paychex, offers a dedicated payroll person that can help you anytime you need it. It also offers limitless concierge assistance, which is available online, via email, or by phone from 8 a.m. to 7 p.m. Eastern time Monday through Friday.

ADP Run

PROS

• Direct deposit and handwritten checks are used to pay your workers.
• Reporting on new hires
• Apps are available for iOS and Android devices.

CONS

• Only state and local tax returns are filed.
• Workers’ compensation is an additional expense.
• Year-end tax preparation is costly.

Total Points 3.66 OUT OF 5

One of the most well-known payroll suppliers on this list is ADP Run. It provides a full payroll service, including tax withholding and filing. ADP Run can cooperate with taxation authorities (state and local) on tax deposits and returns for you, but it is not the cheapest option. ADP Run, however, is not responsible for paying and submitting federal taxes (Form 1040ES) and Schedule H, unlike the other suppliers. It just holds federal taxes until you can pay them before the deadline. You must also pay an additional fee for workers’ compensation.

ADP Run offers a self-service interface that enables you to run payroll from anywhere at any time, earning it a 3.66 out of 5 rating in our review. Using ADP’s system, you may pay workers through direct deposit or print your own check. The employee portal on mobile also allows your nanny to see their pay stub or pay history for up to three years. It is also simple to use during payroll, and it includes new hire reporting and employee onboarding tools, according to users. Others, on the other hand, believe the interface is confusing, and that customer service has lately taken longer.

Pricing

The price of ADP is not available on the company’s website. ADP Run provided us with an estimate for two workers (biweekly payroll) for $40.23 when we contacted them. If you’re interested in using its nanny payroll services, you’ll need to contact its sales department for a quotation tailored to your needs.

Features

• ADP Run is a secure payroll solution that enables you to run payroll in real time, anywhere and at any time, using an internet or mobile app. You may print your own checks or have them sent to your workers in addition to direct deposit.
• Tax filing: Only state and local jurisdictions are supported by ADP Run. Each paycheck period, federal taxes are impounded, which means ADP puts the money in a separate account. The money that has been impounded is returned to you so that you may pay the taxes yourself before the deadline. This is in stark contrast to other companies such as SurePayroll and HomeWork Solutions, who file and pay all tax payments on your behalf.
• ADP Run provides comprehensive analytics and reporting for your accounting system, including general ledger exports.
• Flexible customer support: If you need help with payroll or HR issues, ADP Run offers phone or email support 24 hours a day, 7 days a week.

Savvy Nanny

PROS

• Capabilities for direct deposit and manual checks
• Paying numerous workers for a single price is possible.
• Employee pay stubs are sent to them.

CONS

• Fees for mistakes should be charged.
• There is no employer identification and no help with tax preparation.
• There is no employee portal.

Total Points 3.63 OUT OF 5

Savvy Nanny Payroll, as one of the best nanny payroll software, is a low-cost, do-it-for-you service. Because you can handle payroll for two nannies for a fixed cost of $40 per month, it’s ideal for paying several nannies. The service manages your nanny payroll for you, withholds and pays state and federal payroll taxes, and prepares your year-end tax returns for you. Direct deposit is one option for paying your workers. All of these services are accessible in all 50 states, making them perfect for families that travel often.

Savvy Nanny has a 3.63 out of 5 rating from us, indicating that it is a trustworthy payroll tool. It does not, however, assist with employer identification or tax filing, and it charges a high rate of customer mistake costs. The client mistake costs cover any difficulty you caused Savvy Nanny, such as inadequate money or repeatedly failing to give a state account number.

Because Savvy Nanny lacks an employee self-service interface, your household employee will be unable to access employment information or see pay stubs. Users, on the other hand, find it simple to use and apply. They appreciate how it sends out email payroll and tax reminders so that companies don’t miss important dates.

Pricing

You may hire up to two workers for $40 per month with no startup fees with Savvy Nanny Payroll.

• The Nanny Plan costs $40 per month for two workers.
• The filing fee is $50 each year.

Features

• Savvy Nanny offers flexible payroll processing for any pay schedule and any number of workers. Payroll reminders are sent through email. You may pay your workers with a paycheck or direct deposit after they’ve been processed. Savvy Nanny will send your workers their pay stubs automatically.
• Payroll Tax Management: Savvy Nanny calculates, withholds, and pays your local, state, and federal payroll taxes on time, much like SurePayroll, Patriot, and HomeWork Solutions. It can also create a W-2 and Schedule H on your behalf, as well as compile and submit your quarterly and year-end federal and state tax returns. Its penalty-free guarantee, similar to what HomePay, Patriot, and SurePayroll provide, ensures that you are not liable for any mistakes it makes.
• Customer Service: Savvy Nanny has a team of customer service professionals accessible seven days a week from 7 a.m. to 8 p.m. Monday through Friday, and 9 a.m. to 1 p.m. on Saturdays. They’ll help you with enrollment, payroll, and everything else related to your payroll taxes and files. If a representative is unavailable via phone, you may write an email and expect a response within 24 hours.

Conclusion

Given that most domestic businesses have little understanding and experience with recruiting, paying, and complying with employer tax regulations, it’s not unexpected that many of them get perplexed and even make errors that may result in fines of hundreds of dollars. Nanny payroll requires a high degree of competence, which necessitates the use of a competent payroll provider. As a result, depending on your budget, you should look at nanny payroll software that allows you to outsource the payroll process entirely or partly, or handle it yourself with little assistance.

Paychex, one of the seven suppliers that scored well in our assessment, has all of the essential tools you’d need for paying a nanny. It’s simple to use since the service takes care of everything, and the pricing is competitive when compared to other nanny payroll services. For a 30-day free trial, sign up now.

Frequently Asked Questions

Should I use a payroll service for nanny?

It is best to use a payroll service for nanny.

How do I set up payroll for my household employees?

This is a difficult question to answer, as there are many factors that go into this. You should speak with your accountant or human resources department for more specific information.