How to Choose a Nanny Payroll Service

A pink ceramic piggy bank held between two hands

Paying nannies legally is complicated, but it's the right thing to do. As a household employer, you must file wage reports and pay income taxes on a quarterly basis. It’s time-consuming and can be tricky. That’s why a nanny payroll service can be incredibly helpful. Not sold on using a nanny payroll service? Here are some reasons to consider using a nanny payroll service.

To find a nanny payroll service, you’ll want to look for both quality and convenience.

Deciding what service to work with

Payroll processing

You don’t want to think about writing checks or making sure the correct amount is being deducted each pay. Look for a nanny payroll service that has a great reputation for paying and depositing employees on time, every time.

File and pay payroll taxes

It should be a given, but double check that your nanny payroll service will do the math and carefully deduct the correct federal, state, medicare, unemployment, and social security amounts from your nanny’s paychecks.

Familiarity with nanny tax rules

Nanny taxes are different from other types of tax requirements. You need to work with 1040 Schedule H forms, which your nanny payroll service company should be extremely familiar with. Make sure household employee taxes are your payroll service’s specialty.

Mobile access

You don’t want to be running around on a Friday without access to a computer and suddenly remember you have to submit payroll by 2 p.m. Find a service that allows you to access them from your phone.

Friendly customer service

There are bound to be times when you or your nanny need to call and ask questions. It'll be important for your payroll service to have a friendly person on the other side of the line to answer questions that come up.

Price and additional fees

Many payroll services charge extra to file the quarterly and annual reports. They might also charge to help in a tax audit. You don’t want to be nickled and dimed, so check to see if there are any additional fees when comparing costs.