{"id":17,"date":"2018-02-03T09:43:02","date_gmt":"2018-02-03T09:43:02","guid":{"rendered":"https:\/\/paychecknanny.com\/blog\/?p=17"},"modified":"2020-09-27T18:24:39","modified_gmt":"2020-09-27T18:24:39","slug":"comparison-nanny-tax-payroll-services","status":"publish","type":"post","link":"https:\/\/paychecknanny.com\/blog\/comparison-nanny-tax-payroll-services\/","title":{"rendered":"Nanny Payroll Service Options Comparison"},"content":{"rendered":"

When you hire\u00a0a nanny, you may be surprised at the complexity involved to simply pay her. \u00a0There are several different options to handle payroll.<\/p>\n\n\n\n\n\n\n\n
Payroll Option<\/strong><\/span><\/td>\n\u00a0Time Investment\u00a0<\/strong><\/span><\/td>\n\u00a0Cost of service per year<\/strong><\/span><\/td>\nDrawback<\/strong><\/span><\/td>\n<\/tr>\n
\u00a0Paying under the table<\/td>\nVery Low<\/td>\n$0<\/td>\nIllegal, Nanny gets no benefits<\/td>\n<\/tr>\n
\u00a0Full Service Payroll provider<\/td>\nLow<\/td>\n$1,000+<\/td>\nHigh cost<\/td>\n<\/tr>\n
\u00a0Do it all yourself<\/td>\nHigh<\/td>\n$0<\/td>\nLots of time required<\/td>\n<\/tr>\n
\u00a0Paycheck Nanny<\/strong><\/td>\nMedium-Low<\/td>\n$60<\/td>\nSome time required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Let’s look at\u00a0each of the nanny payroll alternatives in a little more detail.<\/p>\n

    \n
  1. Pay under the table. \u00a0<\/strong>This is bad for the nanny and bad for you as the employer. \u00a0If you are paying $2,200 or more to your nanny in 2020, it considered tax evasion to go this route. \u00a0For the nanny, she loses out on accruing Social Security benefits, unemployment benefits, a verifiable record of employment to help build her credit history, and worker’s compensation benefits should she get injured on the job.\u00a0\u00a0Luckily, there are tax breaks available to you as a household employer which can cover much of the extra cost required to pay legally.<\/li>\n
  2. Use a full service payroll provider<\/strong>. \u00a0Using a company such as Care.com HomePay by Breedlove<\/a>\u00a0will take care the initial registration as a household employer, handle all payroll for you, and file quarterly and yearly reports on your behalf. \u00a0However, there is a steep price for this, and you may pay over\u00a0$1,000 for a\u00a0year of such a service.<\/li>\n
  3. Do all the legwork yourself<\/strong>. \u00a0 You can find out the federal, state and local requirements of what and when to register and pay for. \u00a0Then on a weekly basis calculate the required withholdings, give your nanny\u00a0a pay stub, retain\u00a0required records, and write a check to your nanny. \u00a0This is the cheapest of the legal options, but also the most time-consuming and tedious. \u00a0Use this handy checklist <\/a>to see what is involved.<\/li>\n
  4. Paycheck Nanny. <\/strong>\u00a0Paycheck Nanny is a mobile app for Android phones and tablets<\/a> or your\u00a0iPhone and iPad<\/a> that takes care of\u00a0the most tedious and regularly recurring parts of nanny payroll, and guides you through the rest.\u00a0 With a $5 a month price tag and even a free trial, you can’t go wrong to give it a try. \u00a0Download it from the Google Play Store<\/a> or the Apple App Store<\/a>.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    When you hire\u00a0a nanny, you may be surprised at the complexity involved to simply pay her. \u00a0There are several different options to handle payroll. Payroll Option \u00a0Time Investment\u00a0 \u00a0Cost of service per year Drawback \u00a0Paying under the table Very Low $0 Illegal, Nanny gets no benefits \u00a0Full Service Payroll provider Low $1,000+ High cost \u00a0Do … Continue reading “Nanny Payroll Service Options Comparison”<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":161,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-17","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advice"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/posts\/17","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/comments?post=17"}],"version-history":[{"count":18,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/posts\/17\/revisions"}],"predecessor-version":[{"id":470,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/posts\/17\/revisions\/470"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/media\/161"}],"wp:attachment":[{"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/media?parent=17"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/categories?post=17"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/paychecknanny.com\/blog\/wp-json\/wp\/v2\/tags?post=17"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}