How to Administer Nanny Pay Stubs

How to Administer Nanny Pay Stubs

Since your nanny is an employee and you are her employer, you are legally required to give her regular pay stubs. The easiest way to do this is to use a nanny payroll service. A good nanny payroll service will set you up with automatic direct deposit, and will provide your nanny with a formal pay stub each pay period. Your nanny absolutely needs this to do her taxes each year.

What is a nanny payroll service?

A nanny payroll service handles your nanny’s payment on a regular basis. It will account for federal, state, and local taxes, as well as FICA (The Federal Insurance Contribution Act), which is Medicare and Social Security, and is calculated based on how much your nanny earns.

The nanny tax payroll service handles all of this for you and divvies out the money to the right parties, leaving your nanny with her net pay, deposited right into her bank account on your pre-determined pay days.

May we suggest our own? Nanny Lane has a nanny tax and payroll service to manage everything you'll need to organize, calculate, and submit for your family's (and your nanny's) tax purposes.

What if I don’t want to use a payroll service, but I still want pay stubs?

Nanny payroll and tax is not impossible to do on your own, but it is complicated. Here are some steps to get you started. You will want to talk to an accountant or nanny payroll expert to make sure you’re on the right path:

  • Have your nanny complete a W-4
  • Find or sign up for your Employer Identification Numbers
  • Choose your pay days (and set reminders for when you need to collect her hours so she gets paid on time)
  • Calculate and withhold income taxes
  • Pay out the taxes and her paycheck (make sure you set up direct deposit so it can be automatic)
  • File tax forms & employee W-2s