Nanny Lane Payroll FAQ

Nanny Lane Payroll FAQ

Overview

What We Offer

Payroll Set Up

Payroll Management

Payroll Tax Accounts and Filings

Nanny Share Payroll

Nanny Employment




What We Offer

What does Nanny Lane Payroll include?

Nanny Lane Payroll includes:

  • Processing of your nanny’s payroll on a pay cycle of your choosing
  • Transferring of payments by direct deposit
  • Payroll documents for both employers and employees (pay stubs, payroll registers)
  • Federal and State tax calculations, and completion of corresponding monthly and quarterly tax filings
  • Production of year-end documents
  • Seamless handling of multi-family payments
  • A dedicated payroll expert to answer any inquiries

What is the cost of Nanny Lane Payroll?

Only $40.00 per month for your first employee! Additional employees can be added to your payroll for $25.00 per month.

Is Nanny Lane Payroll offered in all states?

Yup, we offer services in all states! If you have state-specific questions, please do not hesitate to ask.

Can I use Nanny Lane Payroll if I did not find my nanny or the other family in my nanny share on Nanny Lane?

Definitely! Whether you found your nanny or nanny share on our platform or somewhere else, we would be happy to do your payroll.

Can I use Nanny Lane Payroll even if the other family in my nanny share will not be?

Yes! We will gladly manage your payroll needs, regardless of how the other family in your nanny share would like to handle their payroll.


Payroll Set Up

Are there any set up fees?

Nope! There are no setup fees.

How long does it take to get set up for payroll?

Generally, we ask that you give us a week and a half to two weeks to get you set up for payroll. We begin setting you up once your nanny has finished onboarding. As a part of your registration, we will require you and your employee to complete a few tax forms before we can run your first payroll.


Payroll Management

How are funds transferred to my employee?

We will complete withdrawals from your bank account approximately 2-3 business days before each pay date. Funds for the net payment amount are then sent to your employee by direct deposit on payday. Prior to the withdrawal, we will send you an email including the total amount required for the withdrawal. The withdrawals will reflect your legal business name on your banking statement (e.g. Jane Smith).

Is there an option to pay by check, rather than direct deposit?

Yes, we can accommodate if you and your nanny would prefer payment by check. We can advise you of the proper net payment to give your employee by personal check for each given payroll. However, we are not able to print and send checks.

What is the processing timeline for Nanny Lane Payroll?

A week prior to each pay date we will send you an email requesting hour submissions. If we do not receive a response by the next business day at noon EST, we will process your default payment. We will finish processing your payroll three business days before each pay date and will send your employee’s pay stub and your payroll register after processing. Most often, you will then see the withdrawal from your account two business days before each pay date, and your employee will see their direct deposit on Friday.

When will my nanny get paid?

Pay dates are one week following each given pay period end date. If you are on a weekly pay cycle, this would mean that your nanny would be paid for the prior work week each Friday (not the current week).

How does my nanny receive their pay stubs?

Pay stubs are sent directly to your employee via email. These are typically sent 1-2 business days before each pay date.

How do I submit hours for each pay period, given my nanny’s hours are variable?

Variable hours are common for nannies. One week before each pay date we will send you a reminder email for hour submissions. You can then reply to this email with the number and type of hours to be processed for the given pay period. Hour submissions are due the following business day at noon EST.

If my nanny only works part-time, do employer payroll requirements apply to me?

In short, yes. There are federal and state thresholds (dependent on state) for gross pay that must be met before it is required for certain taxes to be paid for household employees. That being said, these thresholds are always quite easily achieved, unless your employee works very, very occasionally.

How does Nanny Lane Payroll accommodate employees with multiple hourly rates?

We would have you set a Default payment, with the usual number of hours per pay period at each rate. If any pay period varies from this, you can email us your hour submission, breaking down the number of hours at each rate.

What information is on the payroll dashboard?

Currently, our payroll dashboard shows the progress of your employee’s onboarding and your employer onboarding.


Payroll Tax Accounts and Filings

Are there additional fees for tax filings?

Nope! Tax filings are included in our monthly fee.

Does this service include year-end documents (including W2s)?

Yes, we will produce all necessary documents at year-end including W2s and W3s. We will also send the W2 directly to your nanny.

Does this service include withholding and remittance of all Federal and State taxes?

Yes, we will withhold and remit all necessary Federal and State taxes on your behalf including Medicare and Social Security (FICA), Federal Unemployment and Income taxes, and State Unemployment and Income taxes.

Will Nanny Lane Payroll apply for the necessary Federal, and State Tax accounts on my behalf?

We can apply for your Federal Employer Identification Number on your behalf. State tax account application requirements vary by state. If we can apply for your state tax account(s) on your behalf, we will do so. If not, we will provide you with steps to complete the application process.

What if I have existing Federal and/or State tax accounts?

Great! You can inform us of any accounts that you have already completed registration for upon sign up. If there are any further requirements, we will let you know at this time.


Nanny Share Payroll

How much do I save by sharing a nanny?

Nanny share reduces the cost of the employee’s gross wage for each family. The price of a nanny share is roughly 2/3 of the costs of a nanny for each family.

In a nanny share, do both families pay the monthly fee or is the fee split?

The $40.00 monthly fee applies to each employer in the nanny share.

Can Nanny Lane Payroll accommodate an unequal nanny share agreement?

Definitely! You can let us know of your default split of hours (i.e., 40/60, 67/33, etc.), upon registration. You can update us each pay period if there are any changes to this, such as additional hours for one family.

Do both families in our nanny share need their own Federal EIN and State tax accounts?

Yes, both families will require individual accounts. Since each family is considered an employer (a sole proprietor), tax accounts cannot be shared or only set up for one half of the share.

Can I use Nanny Lane Payroll even if the other family in my nanny share will not be?

Yes! We will gladly manage your payroll needs, regardless of how the other family in your nanny share would like to handle their payroll.

When our nanny’s hourly rate is split between families, less than minimum wage is reflected. How do you handle this?

We will split the number of hours between families, rather than splitting the hourly rate. This way the total hourly rate is reflected and the nanny’s payment is split accordingly.


Nanny Employment

What is the total cost of employing a nanny?

The total, out-of-pocket cost of hiring a nanny, can be calculated by adding the employee’s gross wages and the employer’s portion of taxes. If applicable, Worker’s Compensation Insurance should be added to this.

Do I need to withhold income taxes from my nanny?

No, income taxes are not required to be withheld at source from household employees. However, income taxes must be withheld at the request of an employee. Even though this is not required, we highly recommend income tax be withheld, as employees will be responsible for remitting their own estimated income tax payments otherwise.

Is it possible for me to pay my employee’s portion of FICA (Medicare and Social Security) taxes?

Yes! Some household employers choose to pay their nanny net of FICA taxes. This means the gross wages include monies to have the employer cover the employee’s portion of Medicare and Social Security. If you are interested in a payment set up like this, just let us know upon registration.

Do I need Workers’ Compensation Insurance for my household employee?

Workers’ Compensation Insurance requirements vary by state. However, in many states, it is a requirement for employers with one or more employees. In most states, Workers’ Compensation Insurance can be obtained through a private insurance company.

Does Nanny Lane Payroll handle Workers’ Compensation Insurance?

Currently, we do not handle Workers’ Compensation Insurance. However, we do have someone we can recommend to you, as it is a requirement in many states.

Is my nanny considered an Independent Contractor?

No, household employees are not considered Independent Contractors according to the IRS’s definition. Your nanny is considered your employee, whom you are required to remit payroll taxes for and provide with a W2.




Sign Up for Nanny Lane Payroll

Contact Information

[email protected]

Share This ArticleSomeone in your network may also find this helpful!
Tweet
Share
Send