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The 8 Best Nanny Payroll Software

Nanny payroll software can help you manage the payments to your nanny or childcare provider with ease. But which software is right for you? All 8 of our picks are easy to use, affordable, and help make payroll taxes simple.

    Erica Seppala
  • UPDATED

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Finding the right nanny that fits your household is difficult, but paying the nanny you find shouldn’t be. Although it may seem confusing at first, nanny payroll software makes it easier than ever to pay your nanny, while also helping you maintain compliance with tax laws.

In this post, we’re going to take a look at the best nanny payroll software and break down pricing, features, and how to determine if the software is the right choice for you. We’ll also go over important laws to know before hiring a nanny.

Keep reading to find the best nanny payroll software for your household.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
SurePayroll

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  • Overall best nanny payroll software
  • Custom pricing
  • Includes benefits & supports multiple employees
  • Overall best nanny payroll software
  • Custom pricing
  • Includes benefits & supports multiple employees

Visit Site

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HomeWork Solutions

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  • Best nanny payroll software for HR support
  • $165-$245/quarter
  • Includes HR support & payroll tax return preparation
  • Best nanny payroll software for HR support
  • $165-$245/quarter
  • Includes HR support & payroll tax return preparation

Visit Site

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NannyPay

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  • Best nanny payroll software for multiple employees
  • P$199.95/year-$299.95/year
  • Tracks taxable payments & deductions
  • Best nanny payroll software for multiple employees
  • P$199.95/year-$299.95/year
  • Tracks taxable payments & deductions

Visit Site

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NannyChex

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  • Best nanny payroll software for customer support
  • $80-$125+/quarter
  • Includes free year-end tax support
  • Best nanny payroll software for customer support
  • $80-$125+/quarter
  • Includes free year-end tax support

Visit Site

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Savvy Nanny

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  • Best budget-friendly nanny payroll software
  • $40/month
  • Easy to use & includes optional year-end tax preparation
  • Best budget-friendly nanny payroll software
  • $40/month
  • Easy to use & includes optional year-end tax preparation

Visit Site

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Wave Payroll

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  • Best nanny payroll software for beginners
  • $20/month + $6 per employee
  • Integrates with free accounting software
  • Best nanny payroll software for beginners
  • $20/month + $6 per employee
  • Integrates with free accounting software

Visit Site

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HomePay

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  • Best automated nanny payroll software
  • $75/month
  • Payroll automation & optional year-end tax preparation
  • Best automated nanny payroll software
  • $75/month
  • Payroll automation & optional year-end tax preparation

Visit Site

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Payroll4Free

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  • Best free nanny payroll software
  • $0/month
  • Basic payroll features & forms
  • Best free nanny payroll software
  • $0/month
  • Basic payroll features & forms

Visit Site

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Show Fewer Options

Read more below to learn why we chose these options.

Do You Have To Have Nanny Payroll Software?

Legally, you are not required to use nanny payroll software. However, nanny payroll software does offer a number of great benefits that make it easier to pay your nanny while also maintaining compliance with state and federal tax agencies.

Nanny payroll software can automatically calculate your nanny’s pay, taxes, and other withholdings. Depending on the software you choose, you may be able to easily set up direct deposit, print paper checks from home, or issue payments through payment apps. Your software can also save payroll records used for filing taxes, during an IRS audit, or even for obtaining funding.

Some software even offers more comprehensive features, such as payroll and tax support, employee onboarding, and easy preparation, filing, and payment of state and federal taxes.

Rules & Regulations About Paying Nannies

Paying a nanny isn’t like simply paying a babysitter with a handful of cash. While you may opt to pay with cash, there are several rules and regulations that you must be aware of when using a nanny. Here’s a breakdown of what you should know:

  • A Nanny Is An Employee: Your nanny is not an independent contractor, as he or she does not set their own hours. Your nanny is considered a household employee and, therefore, you must abide by tax laws and regulations in regards to paying an employee.
  • You Need An EIN: As an employer, you will need to apply for a federal Employer Identification Number. This process is fast, easy, and free — and something we’ll explain in more detail a little later.
  • Overtime Laws Apply: In most cases, your nanny will be paid hourly and does not receive a salary. As such, your nanny must be paid overtime pay (time and a half) for any hours worked that exceed 40 hours per week.
  • You (& Your Nanny) Have To Pay Payroll Taxes: As an employer, you will be required to pay payroll taxes. You will also be required to withhold payroll taxes from your nanny’s paycheck. This step can get a little complicated, but it’s made much easier with the use of nanny payroll software.
  • Be Aware Of Required Tax Forms: After hiring a nanny, you will be required to provide your help with IRS Form W-2 by January of the following year. You will also be required to submit Form W-2 and Form W-3 to the IRS. Additionally, a Schedule H will need to be submitted with your tax return.
  • Lower Your Tax Liability: While paying for your nanny does add to your household expenses, there are credits and write-offs that you can take advantage of to lower your tax liability. Consult with your tax preparer or accountant to learn more.
  • Hold Onto Your Payroll Records: It is your job to make sure that you maintain payroll records for paying your household help. It is recommended that you hold onto your records for three years. Nanny payroll software makes it easy to maintain and access payroll records.
  • Mistakes Can Be Costly: Cutting corners to save time and money may seem like a good idea now. However, these mistakes can later lead to tax penalties. Nanny payroll software simplifies the process, better ensures accuracy, and helps you avoid these costly errors.

The Best Nanny Payroll Software Options

Nanny payroll software helps you remain compliant with state and federal tax laws to avoid costly tax penalties. The best nanny payroll software should be easy to use and should offer payroll management, tax support, and other features that are useful for paying household employees.

1. SurePayroll: Best Overall Nanny Payroll Software

SurePayroll


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Payroll Processing Time

2-4 days

Pricing

Variable

Business Size

Small businesses with up to 10 employees

Pros

  • Easy to use
  • Good customer support
  • Benefits
  • Supports multiple employees

Cons

  • Non-transparent pricing

SurePayroll is small business payroll software that can also be used by household employers. SurePayroll supports multiple employees, although it's best suited for businesses or households with 10 or fewer employees. SurePayroll packs essential payroll features, optional benefits, tax support, and solid customer support all in one package.

paychex dashboard

SurePayroll Features

SurePayroll has all of the features you'll need to pay your nanny while remaining tax compliant. Features worth noting include:

  • Unlimited payroll processing
  • Automated payroll
  • Direct deposits
  • Mobile app
  • Employee self-service portal
  • HR support
  • New hire reporting
  • Automated tax filing & payments
  • Health benefits
  • Pre-employment screenings

SurePayroll Pricing

Here's where SurePayroll falls a little flat. The company is not transparent about its pricing, so you'll need to contact SurePayroll to get a quote. Additionally, there are several add-ons that will increase your monthly costs, such as local tax filing and software integrations.

Is SurePayroll Right For You?

For some small businesses, SurePayroll falls a little short in terms of features. For household employers, though, this software offers just enough without being overkill. If you want software that goes beyond just payroll and tax support -- with features like HR support and health benefits -- it's worth contacting SurePayroll to get a custom quote.

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2. HomeWork Solutions: Best For HR Support

HomeWork Solutions


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Pros

  • Numerous features
  • Automated payroll
  • HR support
  • Good customer support

Cons

  • Expensive

HomeWork Solutions is nanny payroll software that offers self-service and full-service payroll options to fit any household's needs. This software is praised by users for its ease of use and number of useful features. Free HR support is an added bonus that can help you best navigate nanny taxes and payroll.

HomeWork Solutions Features

HomeWork Solutions makes it easy to process payroll for your nanny while also remaining tax compliant.

Notable features include:

  • Free HR consultations
  • Payroll tax return preparation
  • Form 1040 Schedule H & W2s
  • Direct deposit payments to household employees
  • Payroll records
  • Employee withholding calculations
  • Tax payments & reports

HomeWork Solutions Pricing

HomeWork Solutions has two payroll plans ranging from $165 - $245 per quarter. The more expensive plans include direct deposit payments for your nanny, in addition to tax prep and filing. HomeWork Solutions also charges a $110 setup fee and a $110 year-end fee.

Is HomeWork Solutions Right For You?

HomeWork Solutions is definitely on the more expensive end when it comes to payroll software. However, if you have a bigger budget, the features that are offered by HomeWork Solutions are worth the expense. Automated payroll options, an intuitive interface, dedicated account specialists, and customer service that's praised by existing users are just a few of the positive aspects of this software.

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3. NannyPay: Best Nanny Payroll Software For Multiple Employees

NannyPay


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Pros

  • Affordable
  • Supports unlimited employees
  • Easy payroll setup
  • Cloud-based & locally-installed versions

Cons

  • No direct deposit
  • No tax filing
  • Email-only support

If you don't want to spend a fortune on nanny payroll software and don't mind doing some of the work yourself, NannyPay is a great option.

This software is affordably priced and allows you to print out checks and tax forms for your household employee. Setup is easy and cloud-based with locally installed versions for Windows and Mac are available. The software supports from 1 to unlimited household employees.

nannypay dashboard

NannyPay Features

NannyPay doesn't have a large feature set and automated options like more expensive software. However, it does offer quite a few helpful features to simplify paying your nanny and remaining tax compliant, including:

  • Cloud-based or locally-installed versions
  • Calculates all payroll taxes
  • Tracks taxable payments, non-taxable payments, and deductions
  • Generate and print forms including Schedule H, W-2, and W-3
  • Reports

NannyPay Pricing

You can choose from NannyPay Cloud, NannyPay2 Desktop for Windows, or NannyPay2 software for Mac. Pricing for each version ranges from $199.95/year to $299.95/year. The cheapest plans support up to three employees, while the more expensive plans support unlimited employees.

Is NannyPay Right For You?

NannyPay is an excellent choice for budget-minded users, especially those with multiple employees to pay. However, the low annual pricing does come with a few catches. Unlike some other options on this list, NannyPay does not have direct deposit or tax filing options. Support is also limited to email, although there are tax guides and a help center available to help you get the most out of the software.

Get Started With NannyPay

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4. NannyChex: Best Nanny Payroll Software For Customer Support

NannyChex


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Pros

  • Year-round personalized support included
  • Easy to use
  • No hidden fees
  • Free setup & registration

Cons

  • Can be expensive

NannyChex is payroll software that stands out from the pack because of its personalized service. You'll receive unlimited free assistance from your personal account specialist, while things like employment verification, unemployment insurance claims, and workman's comp audits are all handled by NannyChex.

The software is easy to use, has transparent pricing, and boasts a number of features that make it easy to pay your nanny and your payroll taxes.

NannyChex Features

NannyChex makes it easy to pay your nanny, file and pay taxes, and maintain your records. Standout features of this software include:

  • Setup of employer tax accounts and federal Employer Identification Number
  • Direct deposit available
  • Tax filings & payments
  • Unlimited free assistance with payroll, payroll taxes, & year-end taxes
  • PTO, sick, & vacation pay tracking
  • Payroll & tax records
  • Workman's comp audits, Unemployment Insurance claims, & employment verification

NannyChex Pricing

NannyChex has two different plans: Full Service & Taxes Online. Pricing ranges from $0 - $12.50 per check for payroll processing, $80 - $125 per quarter for quarterly filing fees, and $150 - $195 for year-end tax prep. NannyChex does not require prepayment and is a pay-as-you-go service. It is free to set up and register an account.

Is NannyChex Right For You?

If you place a lot of value on quality customer service, NannyChex won't disappoint. Whether you're new to payroll and taxes or just don't have the time to figure it out on your own, NannyChex is a great option. Personal account specialists, year-round assistance, year-end tax filing, direct deposit, and more are all packaged in this easy-to-use payroll software. While the pricing can get a bit expensive, many users find the ease, convenience, and personalized support to be well worth the cost.

Get Started With NannyChex

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5. SavvyNanny: Best Budget-Friendly Nanny Payroll Software

Savvy Nanny


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Pros

  • Affordable pricing
  • Good customer support
  • Tax filing & payments
  • Automated payroll option

Cons

  • No EIN assistance

Payroll software can get expensive, but SavvyNanny offers affordable flat-rate pricing. Even with budget-friendly pricing, SavvyNanny has a lot of features beneficial to your household. This software offers tax filing and payments, direct deposit, and automated payroll, just to name a few features. It also supports multiple employees. The software is also easy to set up and use.

SavvyNanny Features

SavvyNanny has just about everything you could want in nanny payroll software at a price that's easy on the wallet. Notable features include:

  • File & pay federal & state taxes
  • Pay household employees with direct deposit or printed checks
  • Automated or self-service payroll
  • Phone, email, & chat support available six days per week
  • Payroll taxes are paid as you go
  • Year-end tax filing

SavvyNanny Pricing

SavvyNanny pricing is simple. The software costs $40/month for up to two employees. Additional household employees can be added for an extra cost. Year-end tax filing costs just $50. There are no contracts required and no hidden fees.

Is SavvyNanny Right For You?

If you don't like the headache of complicated pricing plans and don't want to spend a fortune on payroll software, SavvyNanny's simple flat-rate pricing might be a good choice. The software boasts a wide array of features to simplify paying your nanny or other household employees. While the software doesn't help you set up a federal EIN to pay your nanny like some of its competitors, this is only a minor complaint that doesn't affect the quality or functionality of this software.

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6. Payroll by Wave: Best Nanny Payroll Software For Beginners

Wave Payroll


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Payroll Processing Time

Four days

Pricing

Starting at $20/month + $6 per person paid

Business Size

Small businesses with up to 20 users

Pros

  • Affordable pricing
  • Easy to use
  • Integrates with Wave’s free accounting software

Cons

  • No full-service payroll available for household employers
  • Lacks some features offered by competitors

While Payroll by Wave isn't specifically designed to pay nannies like other options on this list, it is designed for small businesses -- including users that need to pay household employees. This affordable software is easy to use and integrates seamlessly with Wave's free accounting software.

payroll by wave dashboard

Payroll By Wave Features

Payroll by Wave isn't loaded with some of the features you'll find with its competitors, but it does offer a solid feature-set for anyone that wants simple payroll software. Features worth noting include:

  • Unlimited payroll runs
  • Direct deposit or self-service check printing
  • Paycheck calculator
  • Self-service portal for employees

Payroll By Wave Pricing

The self-service payroll option offered by Wave is the only plan available to household employers. This plan costs $20/month plus $6 per employee or independent contractor paid.

Is Payroll By Wave Right For You?

If you're looking for self-service payroll software without all of the bells and whistles, Payroll by Wave is a solid choice. The software is easy to use, offers basic features, and is affordably priced. You can also integrate the software with Wave accounting software, which is completely free. If you want full-service software that offers tax prep, filing, and payments, though, you'll need to look elsewhere, as this option isn't available to household employers.

Get Started With Wave Payroll

Read our in-depth review

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7. HomePay: Best Automated Nanny Payroll Software

HomePay


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Pros

  • Good customer support
  • Easy to use
  • Automated payroll processing
  • Lifetime access to payroll records

Cons

  • Expensive

Care.com HomePay bills itself as "the most comprehensive nanny tax and payroll service for household employers" and it's easy to see why. This software makes it easy to automate payroll, all while providing unlimited customer support, payroll management, tax processing services, and even household employee onboarding and tax account setup.

HomePay Features

HomePay boasts a great feature-set that makes it easy to pay household employees including nannies. This includes:

  • Automated payroll processing from any device
  • Direct deposit
  • New Hire Report filing
  • Federal & state tax account setup
  • Employee onboarding
  • PTO & reimbursement tracking
  • Audit support
  • Unlimited support for employers & employees

HomePay Pricing

HomePay has a single pricing plan that includes all features for $75/month. Optional year-end tax prep can be added for $100/year.

Is HomePay Right For You?

While HomePay is on the more expensive side, the software covers just about anything you can think of when it comes to paying your nanny. From onboarding your household employee to running automatic payroll from your laptop or phone to getting concierge support if an audit occurs, HomePay offers just about everything you'd need in nanny payroll software.

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8. Payroll4Free: Best free nanny payroll software

Payroll4Free


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Pros

  • Free
  • Pre-filled tax forms
  • Unlimited support

Cons

  • Outdated interface

Payroll4Free stands true to its name, offering basic payroll services at no cost to you.

While there are some paid add-on options available, the company promises you'll never pay more than $30/month. Payroll4Free doesn't have the most comprehensive feature set, but it offers enough features for many household employers, and the price just can't be beat.

Payroll4Free Features

Despite being a free software option, Payroll4Free has a number of useful features beneficial to household employers. These include:

  • Federal, state & local tax calculations
  • Pre-filled tax forms
  • Direct deposit
  • Vacation, sick, & PTO tracking
  • Employee portal
  • Integrations
  • Reporting

Payroll4Free Pricing

All of Payroll4Free's basic features are available at no cost. If you want Payroll4Free to deposit and pay your payroll taxes, this service does cost a monthly fee. Additionally, if you prefer to use Payroll4Free instead of your own bank for direct deposit, an additional fee applies. Both services can be added for $30/month.

Is Payroll4Free Right For You?

Payroll4Free is a great option for anyone on a budget, as you can access most features without paying a monthly subscription fee. While this software doesn't contain some of the more advanced features you'd find with other payroll software, what it does offer may be perfectly adequate for paying your nanny. One last thing to note is that some users do complain about the unintuitive, outdated interface. However, this is a small price to pay for software that doesn't cost hundreds of dollars per year.

Get Started With Payroll4Free

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How To Choose The Right Nanny Payroll Software

When choosing the right nanny payroll software, there are several factors to keep in mind.

Your budget is important, but it should never be the most important factor. Instead, you should look for software that offers the features you need, is easy to use, and has good customer support at a price that’s right for you. Make sure to take advantage of any free trials or demos if available to get hands-on with the software to make sure it’s a good fit.

Didn’t find what you were looking for here? Don’t stop looking for the perfect nanny payroll software.

Check out our free payroll software for more affordable payroll solutions. Good luck!

FAQs About Nanny Payroll Software

What is nanny payroll software?

Nanny payroll software is software that is used to accurately pay your nanny. Additionally, this software is used to help you maintain compliance with tax laws by calculating withholdings and employer taxes.

How do I do payroll for my nanny?

The easiest way to do payroll for your nanny is by using nanny payroll software. With the right software, you can accurately calculate everything from how much to withhold from your nanny’s paycheck to how much you need to pay in payroll taxes. You can also use payroll software to automate paychecks or direct deposits to ensure timely payments to your household employee.

How much does nanny payroll software cost?

The cost of nanny payroll software varies, ranging from $0 to $100+ per quarter. Make sure to evaluate all features and usability before basing your decision solely on price. Additionally, make sure to consider any additional costs that may drive up your price, such as year-end tax preparation.

Can I do nanny payroll myself?

If you are the do-it-yourself type and don’t want to spend a fortune outsourcing your payroll, it is completely possible to do nanny payroll yourself. However, you should still use nanny payroll software to ensure accuracy when it comes to tax calculations, withholdings, and paying your nanny on time, every time.

How do I pay nanny taxes?

In order to pay nanny taxes, you will need to register for a free Federal Employer Identification Number through the IRS. You will also need to determine what taxes you will be required to pay and what taxes you will need to withhold from your employee’s earnings. Nanny payroll software can help you through the process, from registering for an EIN to calculating how much you (and your nanny) will need to pay toward federal and state taxes.

Can I use QuickBooks for nanny payroll?

QuickBooks is small business accounting software that does offer a Payroll add-on. However, the monthly cost of the software, in addition to the Payroll cost, can be quite expensive for household employers. Additionally, there are many features that won’t be useful, and learning the software can be difficult. There are plenty of payroll software options that are easier to learn, have a lower cost, and offer features specific to household employers.

In Summary: The Best Nanny Payroll Software Options

  1. SurePayroll:
    • Overall best nanny payroll software
    • Custom pricing
    • Includes benefits & supports multiple employees
  2. HomeWork Solutions:
    • Best nanny payroll software for HR support
    • $165-$245/quarter
    • Includes HR support & payroll tax return preparation
  3. NannyPay:
    • Best nanny payroll software for multiple employees
    • P$199.95/year-$299.95/year
    • Tracks taxable payments & deductions
  4. NannyChex:
    • Best nanny payroll software for customer support
    • $80-$125+/quarter
    • Includes free year-end tax support
  5. Savvy Nanny:
    • Best budget-friendly nanny payroll software
    • $40/month
    • Easy to use & includes optional year-end tax preparation
  6. Wave Payroll:
    • Best nanny payroll software for beginners
    • $20/month + $6 per employee
    • Integrates with free accounting software
  7. HomePay:
    • Best automated nanny payroll software
    • $75/month
    • Payroll automation & optional year-end tax preparation
  8. Payroll4Free:
    • Best free nanny payroll software
    • $0/month
    • Basic payroll features & forms
Erica Seppala

Erica Seppala

Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.

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