Which Nanny Payroll Service?

Parent Q&A

Payroll service for over the table nanny pay? Jul 1, 2020 (1 responses below)
Nanny payroll system recommendation Jul 1, 2019 (7 responses below)
Recommendations on how to do Nanny Payroll? Sep 27, 2016 (1 responses below)
  • We live in El Cerrito and plan to have a nanny care for our two children (ages 3 and 1) this fall.  What is the going rate for a nanny caring for two children in the Bay Area?  Websites we consulted seem to be too low and inaccurate.  Also, we wanted to pay our nanny over the table.  Does anyone have any experience with payroll companies? Any recommendations?  Thank you!

    We love Savvy Nanny Payroll services.  They are straightforward, reliable and ethical.  Owner Laila Stone is a real gem.  https://savvynannypayrollservices.com/

  • Nanny payroll system recommendation

    (7 replies)

    Hello parents! My husband and I will be starting a nanny share with another family. What payroll systems do other parents use to pay their nannies? Any advice or past experiences helpful - thank you!

    I've been using Poppins Payroll and it is excellent. Also the most affordable of the ones I priced when I did my search about a year ago. They are also very responsive to questions and concerns via email.

    Poppins Payroll is fantastic :) they handle everything. They do have a monthly fee of about $40 if that's a factor for you.

    We've been using Poppins Payroll to pay our Nanny.  We're also in a share.  Both families manage their own Poppins Payroll account and associated bi-weekly payroll so that our Nanny gets a direct deposit from each family.  Poppins automatically takes care of the quarterly taxes so you don't have to worry about handling those.  Poppins monthly fee is also significantly cheaper than the other popular payroll sites.  

  • Do you have any recommendations/advice on efficient, economical ways on how to handle payroll for a full time Nanny? (e.g. HomePay from Care.com, Intuit Payroll, accountant)?
     

    Hello - We've used SurePayroll for years with a lot of success and have referred them to others who also have liked working with them. Feel free to reach out for a formal referral. Through a referral, we both get some $ off.

  •  We are currently exploring the possibility of setting up a nanny share and talking to potential partner families. If you are in this situation, and can provide advice on any of the following, it would be much appreciated:

    1) what are you paying for a two child nanny share, per child per hour?   Please specify net or gross!  

    2) What do people do about reporting income to state and federal authorities and also about withholding? Do most people simply pay the nanny gross wages (and pay the govt payroll (employer side) taxes) and leave it to the nanny to pay income tax, SDI, etc.? Or is it more common practice for the employer to handle all of these things for the nanny?

    3)  what service, if any, do you use to calculate employer side tax, and various deductions from nanny wages?   It looks like you can do this manually yourself, but it is fairly complicated.   I have heard good things about Care.com, but is more expensive, and I've also read that Sure Payroll is very good but less expensive. 

    4) most of the information I've seen online concerns one household employer and one nanny. How do you handle all of this with two households paying one nanny's wages?

    5) any other hot tips or "things you wish you'd known" before you started this process would be much appreciated!

    I would strongly encourage you to consult a tax attny.  But to give you some info/things to consider in case it's helpful:  We don't do a nanny share but pay our nanny over the table via Intuit's payroll service. It costs $22/month and I believe it's worth it--you plug in all the info and it calculates your taxes, populates the forms, sends reminders, etc. It also pays her via direct deposit.  I don't believe it's legal for you to expect her to pay the SDI, ETT, and not withhold CA state Income tax. The CA tax payments would be fairly straightforward to split as (I think) because it's really not that much money and you pay it either quarterly or at the end of the year, but it could get a bit more complex on the federal side when you file if one family is the employer and you both want to take advantage of federal childcare credits or want to list the childcare expenses on your return.  I personally would not be comfortable waiting until the end of the year to count on the other family to pony up their share of the outstanding federal taxes if we were the only one reported as the employer. I suppose you could work out an arrangement where monthly/quarterly the other family paid you their share of the withheld tax and employer-paid SS, etc. so that you don't have to worry about holding the bag on that when you file your federal return. 

Archived Q&A and Reviews



Paying taxes for nanny

Oct 2012 

I'm confused about the different options for paying taxes for our nanny. Do we pay? Does she pay? Both? Do we do this ongoing or just at the end of the year? Please let me know your experience/knowledge with this. Thanks so much! Confused


We used paycycle.com -- now payroll.intuit.com . Go to their website and click on ''Payroll Services'' and then ''Household and Nanny Payroll'' . It's still $20 a month for paying a nanny. It will generate the checks, deal with direct deposit, calculate all the taxes, including the ones you pay and the ones your employee pays, and pre-generate tax forms (you just have to sign and mail.) It was well worth the $20 a month and I'm impressed that they haven't increased the price over the years (we last used it in 2004 or so.)

There are a couple of startup steps, like getting a household employer ID from the state or federal government. I don't know the current requirements on that, but I'm guessing the people at paycycle.com could advise you on that as well.

I recommend this type of service because it saves a lot of time and you know you're doing it all legally. loved paycycle.com
 


CPA to help set up Nanny Payroll

Jan 2012

I'm looking for someone to help set up payroll and tax documents for us with our nanny. It seems to be a somewhat specialized task and we use an out of state CPA for other things so someone familiar with the laws here would be of great assistance. Does anyone have someone they like who they can suggest? Hana


I can't recommend a CPA, but I've had great success with Quicken's Intuit Payroll: https://www.paycycle.com/external/home.jsp They assist with all paperwork setup, and have been good to work with (recently they just called to tell me that I needed to change a form -- nice to have someone tell me this). It's $20 month for one employee, and unless your situation is complicated it would probably fit the bill, and you can still use your other CPA for actual filing of taxes. -also paying nanny taxes


Our accountant recommended Breedlove so we used them for a few years while we had a nanny. Their service was good although pricey. http://www.breedlove-online.com/


Nanny payroll service for share care?

June 2009

We're considering using a nanny payroll service for our share care. Is this worth doing? If so, what service would you recommend? (I saw a few reviews of Breedlove & Associates and paycycle in the archives, but these are a bit old.) Also, have any of you had experience using a payroll service for a share care? Would love any tips you have on doing this. Thank you! Going legal


I highly recommend an internet service ''PayCycle''. The phone in
support is great and they keep up to date. You have to follow the to-do list they generate for you to keep up with forms. If you are good on the computer it is a great option. Compare the price at least with a payroll service. Elizabeth
 


Accountant to help with paying taxes for nanny

April 2007

hi. i searched the archives but couldn't find any recommendations for an accountant who can do the paperwork to pay the quarterly/annual taxes, social security, etc. for our nanny. any recommendations would be much appreciated. thank you. Patsy



Give Breedlove a call. Everything can be done via phone and internet. It's really easy and they are very accurate, responsive and nice. http://www.breedlove-online.com/ 888-BREEDLOVE (273-3356) Easy peasy! Keley



We use an online service called PayCycle to do the paperwork with all related nanny taxes, weekly paycheck summaries, vacation/holiday/sick pay tracking, etc. They provide regular reminders for all of the related tasks and their Customer Support Team has been very responsive to the few inquiries I've had. It's $19.99/month, which is far less than what my CPA would charge. I've been very happy with the service. You can see a demo at www.paycycle.com. A happy customer