Understanding payroll documents
After you’ve registered online, you’ll have an email from Nanny Lane Payroll with the subject line “Welcome to Nanny Lane Payroll” in your inbox. In this email, we’ll ask you to complete a few forms to allow us to file and remit your taxes on your behalf and a bank authorization allowing us to withdraw and deposit into and out of your bank account. We’ll also ask you to send us a void check for the bank account on file. After all your forms and information, we’ll deposit and withdraw a random amount between $0.01 - $0.99 in your bank account and ask you to confirm the amount. And then, you’ll be ready for your first direct deposit payroll.
We’ll ask for your nanny’s name and email address when you register online. Then, they’ll receive an email invitation from Nanny Lane Payroll with the subject line “.... invited you to set up payroll!” in their inbox. After they’ve completed their online registration, they’ll have an email from Nanny Lane Payroll with the subject line “Get ready for your first payday!” In this email, we ask them to complete some forms and send us a confirmation of their bank information.
If your account has online banking, you should have access to a voided check or ‘Direct Deposit Authorization Form’ that would display your bank name, account holder name, routing number, and account number.
We can either process the payment after your account is set up, or we can easily calculate your nanny's net pay for you to pay your nanny directly. If we calculate the net pay and you pay your nanny directly, we’ll adjust for any overpayments and collect the tax payments on your first direct deposit payroll.
If you’ve paid your nanny within this calendar quarter, we can process those payments and manage the filings and payments on your behalf. Please let us know, and we’ll provide you with a template to ensure that we have all the appropriate information for your first direct deposit payroll.
If you have payments from previous calendar quarters, we can manage the fillings and payments for an additional service fee.
We’ll ask if you're in a nanny share and their last name when you register online. If they haven't registered themselves yet, please ask them to sign up here. When they register online, we will ask for the nanny’s name and email address. Then, they’ll receive an email invitation from Nanny Lane Payroll with the subject line “.... invited you to set up payroll!” in their inbox. After they’ve completed their online registration, they’ll have an email from Nanny Lane Payroll with the subject line “Get ready for your first payday!” In this email, we ask them to complete some forms and send us a confirmation of their bank information. We will need the withholding form(s) completed by the nanny for each employer that they work for. However, we only need the nanny to submit a single confirmation of your bank information.
That is entirely up to you! Many of our clients use a spreadsheet or a calendar, and some even use free time tracking apps.
One week before the pay date, you will receive an email reminder from us. Please reply to this email if you want us to process something other than the default you indicated during the registration process.
You have until the next business day at noon Eastern to respond. If you do not reply, your nanny will be paid the default hours. If a change needs to be made, it will appear on the following pay cycle.
If you're in a nanny share, you two ways you can submit your nanny's hours: 1) individual hour submissions, or 2) combined hour submissions. For individual hour submissions, Family A would send us 10 hours and Family B would send us 10 hours. For combined hour submissions, one family (either Family A or Family B) sends us 20 hours, and we divide 20 hours by two equalling 10 hours each.
You'll have specified this in you registered online. If you'd like to change how your nanny share submits hours, please discuss it with each other and let us know which way you'd like to submit hours and who will send in the hours if you choose combined hour submissions.
If an adjustment needs to be made, it will appear on the following pay cycle.
You’ll have a default amount to be processed with the usual number of hours per pay period at each rate. If any pay period varies, you can email us your updated submission with the number of hours at each rate when we send out the reminder emails.
If your nanny is on the weekly or bi-weekly cycle, your nanny will receive their deposit on the Friday after the end of the pay period. For example, if the pay period ended on Friday, January 8th, they will be paid on Friday, January 15th.
If your nanny is on the semi-monthly cycle, they’ll receive payments twice a month, usually around the 15th and the last day of the month.
We’ll withdraw the funds the business day before each pay date. You will see two withdrawals: 1) for your nanny’s net pay and 2) for the taxes (both employer and employee taxes). Please ensure your account balance is sufficient for those dates. If your bank rejects either or both of these withdrawals for insufficient funds, you’ll be charged the banking fee.
The withdrawals will be listed under our partner’s name, NATPAY. It can vary slightly depending on your bank, so please ask us if you are unsure.
We can proceed with your first direct deposit. However, if we have not received confirmation of their bank information, they may have incorrectly entered their banking information. If they entered their banking information incorrectly and we do not receive their confirmation of bank information, the bank will reject the payment, and you’ll be charged a $15 fee.
If a withdrawal attempt is returned with an insufficient funds error (includes invalid banking errors), a $110 insufficient funds fee will be applied for each occurrence. If an insufficient funds error is received for both net pay and taxes withdrawals, you’ll be charged a total fee of $220.
You’ll be sent a pay stub and a payroll register for your records. These are typically sent 1-2 business days before each pay date.
Pay stubs are sent directly to your nanny via email. These are typically sent 1-2 business days before each pay date. If you’re in a nanny share, your nanny will receive two pay stubs - one for each family.
The pay stub contains three parts: 1) the net pay/nanny deposit information, 2) the earnings information, and 3) the deduction information.
1) The net pay/nanny deposit section lists the employee’s name, address, the net pay amount, date of the payment, and banking information.
2) The earnings section contains the employer’s information, the employee’s information, the tax set up of the employee, and the hours, rate, and gross pay. The most common pay codes are Hrl (Hourly), Overtime, Vacation, Sick, and Second Rate (hours paid at a different rate than the default rate).
3) The deductions section lists the tax deductions, including Federal Income Tax, Social Security, Medicare, and State and Local Income Tax as applicable.
The payroll register will contain all employees with payroll for the pay period that it covers. The top of the report includes the employer’s name, the pay run ID (which is system generated), the pay period start and end dates, and the check (payment) date.
The following section lists the employee’s name, SSN, gross pay, employee tax total, and net pay.
The final section contains the details of the pay codes, hours, rate, gross pay, and year-to-date totals, the employee tax breakdown, and the employer tax breakdown.
Common codes you will see include FICA MDCR (Medicare), FICA SS (Social Security), FIT (Federal Income Tax), SIT (State Income Tax), FUTA (Federal Unemployment Tax, SUTA (State Unemployment Tax), SDI, and (State Disability Insurance).
If you cancel our payroll service, please email us to let us know as there are some administrative and tax questions that we will ask you to confirm.