Best Nanny Payroll Services

SurePayroll was the first company to bring payroll for small businesses to the internet back in 2000, and the company has continued providing an easy-to-use, flexible, and affordable service ever since. Its Nanny and Household plan allows you to pay your employee while ensuring you’re meeting the various legal requirements related to taxes.

SurePayroll only maintains a two-day debit period, which means it doesn't hold onto your money for quite as long as many other companies do before disbursing it. And with the Nanny and Household option, you can take advantage of even more benefits, like running automated payroll from your smartphone or computer, calculating taxes using SurePayroll’s software, and even filing your taxes with the appropriate agencies right through the system. 

Costs are subject to change from business to business, but the flat rate for SurePayroll is about $30 per month for one employee, with a fee of another $5 per month for additional employees. (However, the Household payroll plan starts at $50 per month with an additional $10 per extra employee.) There are also additional fees for the cost of filing your taxes through the system when the time comes—or you can choose a self-service option and save on your monthly plan.

With Savvy Nanny, you’re charged one flat rate for up to two employees, with a $45 annual fee, plus an extra $6 per person charge after that. It's ideal for families with multiple childcare providers (like an after-school nanny and a weekend babysitter).

We like that Savvy Nanny does “payroll impounding,” a fancy term for putting your withholdings into a separate account every pay period allocated for taxes. Impounding is desirable so that you do not have to pay taxes in one lump sum at the end of the quarter. Expenses are easier to budget and there is less risk to overdraw your bank account. For each payment, you will see the exact amount that will be deducted from your bank account.

The flat monthly rate for Savvy Nanny is $50 (for up to two employees) and there is a $50 annual fee. At the end of the tax year, Savvy Nanny will file your W-2 and provide you with a completed form Schedule H to file with your income tax return. This is what the $50 annual fee covers. With simple pricing and low fees, Savvy Nanny is a budget-smart choice, whether you have one employee or a half dozen.

If you’re balking at the idea of paying a monthly fee for a payroll service when you only plan to use it for certain months of the year (let’s say only from September to June, when your kids are in school), Payroll by Wave is a flexible option that allows you to suspend payroll at no charge for as long as you need to—without closing down your account.

Payroll by Wave will also file your taxes for you if you live in any of the following states: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. If you live in one of the other 36 states, you can use the tax data you’ve collected in the Wave portal to file easily on your own.

The monthly fee for Payroll by Wave in a tax-service state is $40, plus $6 for each additional employee or independent contractor. For self-serve tax filing, the fee is $20 per month plus the additional fees for extra employees.

Care.com’s HomePay service offers extensive customer support and expertise so you can ask as many questions as you need in order to feel comfortable with the whole idea of online payroll. 

HomePay offers “concierge support,” which means you get unlimited phone, chat, and email support, technical and onboarding help for your employee, and audit assistance, if necessary.

HomePay also gives the option of a full refund for the first six months of services if you end up being unhappy with HomePay. The cost for HomePay is around $75 per month, plus, an additional $100 tax filing fee, which is noticeably higher than many of its competitors. The extra money you spend on this service is really for your peace of mind; the concierge support is a key feature, as is the reassurance that you don’t have to be on top of everything all the time because HomePay is looking out for you.

Poppins Payroll has, by far, the most pleasant-looking web interface of all the services we researched: it’s colorful and the cartoonish artwork makes us feel slightly more energized about the oh-so-exciting topic of employee payroll. The company's FAQ section is full of common questions and clear answers about nanny tax laws, contracts, and overtime, and its nanny payroll guide is incredibly comprehensive, to say the least.

Even though it has limited availability, we’re including it on this list because if you live in one of those states, you should consider signing up; and even if you don’t, Poppins Payroll is a fantastic resource for families hiring a nanny for the first time and wondering how best to pay their new employee. 

If you’re lucky enough to reside in one of Poppins Payroll’s service states, you’ll benefit from a super-easy signup and onboarding process, zero hidden tax-filing fees, and PTO and overtime tracking. Best of all? The flat fee is about $45 per month.

GTM Payroll Services makes it easy to set benefits up with your employee’s payroll, so you’re not left coordinating separate add-ons with separate companies (and trying to keep track of everything).

Because they also are licensed insurance brokers in many states, they're able to coordinate your employee’s health, dental, and vision insurance, plus their workers’ compensation insurance, travel insurance, and tax-savings program.

GTM isn’t one of the cheapest options on this list; a nanny plan is about $70 per month with a six-month commitment, plus roughly a $99 setup fee and a $20 charge for each additional employee. Additionally, tax prep will add $120 to your bill. But having all of your nanny-related expenditures housed in one place, handled by customer service experts from the same company, might be worth the extra cost for you.

NannyChex takes over the legwork: making payments, filing your taxes, setting up an employer tax account, maintaining tax records, or corresponding with tax agencies. “We do everything, you do nothing" is their motto.

Rather than a monthly fee, NannyChex charges a quarterly fee of about $80, a $150 tax-filing fee once per year, and either $6.25 or $12.50 per paycheck for direct deposit of funds to your employee, depending on how frequently you want them to be paid. This means your total costs will be $670 per year in most pay-frequency situations, which is more than the basic plans on this list but less than some of the other more comprehensive options.