Anyone who has employed a nanny knows that handling payroll comes with its own set of complexities, particularly when it comes to taxes. Employers are required to file Schedule H., often referred to the ‘nanny tax.’ It is an Internal Revenue Service (IRS) form used to report and pay employment taxes for domestic workers.
The form covers important details such as wages paid, tax withholdings, and Social Security or Medicare contributions. However, for many employers or families who hire nannies, handling these calculations and filings can be overwhelming. Understanding the nuances of domestic employment tax rules is challenging, particularly for non-specialists.
Specialized nanny payroll software takes this burden off employers. Such software help with tax calculations, automating filings, and ensures documents like Schedule H and W-2s are generated correctly.
Below, we have rounded up some of the best nanny payroll solutions to help choose the one that makes managing taxes and payments easier.
Software | Key Features | Starting Price | Deployment / Notes |
Nest Payroll | Tax compliance, flexible payroll, concierge support, and history access | $42/month (1 employee) | Web/cloud based, includes mobile app, free trial (14 days) |
HomePay | Automated time tracking, estimate budget and tax calculator, paystub, and record access | $59/month (Basic) | Cloud-based, supports access from any device |
SurePayroll | App and mobile support, schedule H and W-2 included, local and multi-state tax filing | $29/month | Cloud-based, mobile app available |
Poppins Payroll | Employer setup and registration, document and archive access, paystub + leave tracking | $49/month | Web service, available in selected US states |
Savvy Nanny Payroll Services | Direct deposit, automated reminders and preview, all-state and local tax filing | $50/month | Cloud-based, nationwide coverage in the US |
GTM Payroll Services | Automated withholdings, free direct deposit, integrated timekeeping (HomePunch®) | $70/month (EasyPay Tax and Payroll) | Cloud-based; HR + payroll combined platform |
ADP Run | Error flagging / AI checks, recurring 'Run & Done' payroll, integrated time and attendance | Custom pricing (varies by plan) | Cloud-based SaaS; mobile apps available |
NannyPay | Complete tax calculations and forms, wizard-style onboarding, user-friendly interface | $199.95/year (1–3 employees) | Cloud-based; DIY payroll management |
1. Nest Payroll – Best For On-The-Go Payroll For Quick Setup
Nest Payroll helps household employers manage nanny payments and tax filings through a simple process. Due to its intuitive interface, users can be up and running in minutes.
The software facilitates its users in setting up federal Employer Identification Number (EIN) and state registration. It also helps file all required state and federal tax reports and manages New Hire paperwork. Furthermore, it assists with the preparation of yearly W-2/W-3 and Schedule H for the tax return.
Using the software, users can track paid time off (PTO), reimbursements, and sick leaves. It also provides professional pay stubs that are accessible through mobile phones. Payments can be made through bank transfer, Venmo, Cash App, or traditional checks. As the system automates many payroll tasks, users spend less time on manual entry and compliance tracking.
Key Features
Pros And Cons
Pros | Cons |
Quick and easy setup with minimal friction Thoroughly provides guidance on upcoming tax payments Automatically generates professional pay stubs and in-app notifications for tax documents | No employee portal for logging hours Compatible only with Apple devices
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Pricing
Nest Payroll offers the following pricing plans, each with a 14-day free trial:
- Essentials: $42/month (includes 1 employee)
- Essentials Plus: $49/month (includes 2 employees)
- Professional: $69/month (includes 3–6 employees)
Disclaimer: The pricing is subject to change.
2. HomePay – Best For Families Who Want Complete Payroll Automation
HomePay provides award-winning nanny tax and payroll services. It manages state tax notices, employer setup, W-4 collection, withholdings, pay stubs creation, and paycheck delivery.
The software offers flexible and compliant payroll processing that benefits household employers the most. For instance, schedule or hour changes can be updated from any device to ensure pay calculations stay accurate.
The system also automatically generates W-2 forms at year-end to reduce manual effort on the employer's part. Additionally, HomePay handles proper reporting of nanny earnings for Social Security, unemployment, and health insurance purposes.
For busy families, HomePay is a good option as it ensures nannies are paid properly and on time, while meeting all necessary tax obligations.
Key Features
Pros And Cons
Pros | Cons |
Automatic state and federal payroll tax calculation and deposits Lifetime access to tax records Handles all state tax notices and provides assistance for tax audits | No paper check option (direct deposit only) Limited benefit add-ons compared to competitors |
Pricing
HomePay offers the following pricing plans:
- Basic: $59/month
- Premium: $75/month (free for the first month)
Disclaimer: The pricing is subject to change.
3. SurePayroll – Best For Accurate, IRS-Compliant Payroll For Busy Households
SurePayroll, by Paychex, takes much of the overwhelm out of hiring and paying a nanny. The platform is designed for families who prefer an automated approach and want to avoid IRS-related errors. It guides household employers step-by-step through registration, handles withholding and payroll tax filings (federal, state, unemployment, etc.), and automatically prepares Schedule H and W-2 forms at year-end to help them meet IRS obligations.
It also offers a dedicated mobile app that enables users to run payroll from anywhere. In addition, optional add-ons such as pre-employment screening, workers’ compensation, health insurance, and labor law further enhance the software's value. Together, these tools help families manage every administrative aspect of employing a nanny within one ecosystem.
Key Features
Pros And Cons
Pros | Cons |
Accurate tax records and automated year-end forms generation User-friendly employee portals with essential features Easy access to payroll information | The cancellation process could be smoother Referral program delivery is inconsistent |
Pricing
SurePayroll provides flexible pricing plans for both small businesses and household employers. Here are the different tiers it offers:
For Small Business
- Full Service: $29/month + $7/employee
- No Tax Filing: $20/month + $4/employee
For Household
- Household: $39/month (includes one employee) + $10/employee
Disclaimer: The pricing is subject to change.
4. Poppins Payroll – Best For Paperless Payroll With Easy Setup
Poppins Payroll is a household payroll and tax service platform designed specifically for families employing nannies or caregivers. The software’s layout is simple, allowing even non-tech savvy household employers to use it easily.
The platform automatically registers users with the required US tax agencies, runs payroll, files returns, and ensures timely tax payments. Its functionality also extends to providing families with a clear digital library where every pay stub and form is stored permanently for easy access.
The software enables users to set up their own PTO and sick leave policies while keeping track of balances. This makes it easy for employers to manage payroll responsibilities and related records in one convenient place.
Key Features
Pros And Cons
Pros | Cons |
Paystubs are emailed directly for convenience Provides easy access to W‑2 forms Quick setup process with straightforward payroll management | Services are not available in all the US states Provides support on weekdays only |
Pricing
Poppins Payroll offers pricing at $49/month with an additional $10/month/employee.
Disclaimer: The pricing is subject to change.
5. Savvy Nanny Payroll Services – Hands-Off Payroll With Strong Support
Suitable for families with multiple household employees or those needing temporary nanny solutions, Savvy Nanny Payroll Services is an online payroll and tax platform for household employers. The platform uses a technique known as ‘payroll impounding,’ where tax payments are automatically processed with each payroll run.
Savvy Nanny also handles state and federal tax filings, including the preparation of Schedule H forms for household employers. Another key strength is its nationwide US coverage and dedicated customer support, which helps employers stay on top of technical and payroll-related issues.
Key Features
Pros And Cons
Pros | Cons |
Handles federal and state tax filings, including W-2 and Schedule H Direct deposit with automatically emailed pay stubs Simple, intuitive payroll platform | No mobile app for on-the-go payroll management Does not provide access to employee benefits plans like health insurance or retirement options |
Pricing
Savvy Nanny offers a simple, no-fuss subscription-plan costing $50/month.
Disclaimer: The pricing is subject to change.
6. GTM Payroll Services – Best For Comprehensive Household Payroll And HR Solution
GTM Payroll Services is a comprehensive payroll, Human Resource (HR), and Human Capital Management (HCM) solution. It handles all aspects of payroll, including tax calculations, filings, and compliance with labor laws.
Furthermore, GTM provides access to experts who offer concierge-level assistance, ensuring that any issues that arise are resolved proactively.
The vendor partners with nanny agencies to share tools and resources that benefit employers, staff, and nannies alike. GTM also offers financial incentives for referrals, which makes them a trusted partner for all household employment needs.
Key Features
Pros And Cons
Pros | Cons |
Option to schedule payroll so it runs automatically Provides an online portal that guides employees through self-service onboarding Direct access to CPAs, payroll experts, and household employment professionals | Setup and transition times vary based on data readiness Live support hours are limited |
Pricing
GTM offers tiered household payroll solutions. It includes:
- EasyPay® Tax & Payroll: Starts at $70/month
- EasyPay® HR Platinum: Starts at $127/month
- EasyPay® Diamond: Starts at $227/month
Disclaimer: The pricing is subject to change.
7. ADP Run – Best For Flexible And Smart Payroll Processing
ADP Run is a trusted payroll solution widely recognized across the United States for its flexibility. It offers tailored payroll services for household employers, including those hiring nannies, caregivers, or household assistants.
It enables users to set recurring payrolls on autopilot, while the software automatically calculates, deducts, and files income taxes. Moreover, the platform offers an intuitive dashboard with important alerts and to-dos, helping users stay organized and compliant.
In addition, ADP’s HR tools extend beyond payroll, providing assistance with hiring, background checks, and benefits management. These capabilities make it a versatile option for families managing multiple household employees or planning long-term arrangements.
Key Features
Pros And Cons
Pros | Cons |
User-friendly interface with payroll automation and compliance support Provides predefined and customizable reporting Easy implementation and time saving | May become difficult to manage with growth Doesn’t allow defining custom workday hours |
Pricing
ADP offers multiple RUN payroll and HR packages, all available with custom pricing.
- Essential (Payroll)
- Enhanced (Payroll)
- Complete (Payroll & HR Plus)
- HR Pro (Payroll & HR)
Disclaimer: The pricing is subject to change.
8. NannyPay – Best For DIY Payroll For Families Who Want Control
NannyPay is a cloud-based, do-it-yourself (DIY) household payroll tool meant for families employing nannies or domestic staff. It supports users in creating employer profile, managing payroll runs, withholding Social Security, Medicare, and state taxes, and producing year-end tax forms (W-2/W-3 and Schedule H).
It particularly appeals to families who prefer managing payroll themselves rather than outsourcing it. Its straightforward interface is geared towards non-experts, which helps reduce confusion during setup and operation.
Key Features
Pros And Cons
Pros | Cons |
Accurately generates W-2 and Schedule H forms Offers guides and step-by-step assistance for users Easy to navigate and use | No built-in direct deposit Takes a little extra time to load initially |
Pricing
NannyPay offers a cloud solution with the following pricing:
- 1-3 Employees - $199.95
- 3-10 Employees - $249.95
- 10+ Employees - $299.95
Disclaimer: The pricing is subject to change.
With household employment becoming increasingly common, the need for reliable nanny payroll solutions is greater than ever. These tools help users manage often challenging and time-consuming tasks such as calculating wages and overtime, filing taxes, and generating pay stubs, while keeping all records, including payment history in one place.
All set to find a nanny payroll software? Explore our top picks and see which one works best for you.