There are a variety of nanny payroll software programs on the market to choose from. Many of these programs offer similar features and benefits, which can cause confusion for users who aren’t sure exactly what they need. We’ve evaluated a number of available programs based on three key features that should be included with any nanny payroll software system, including their payment features, tax preparation abilities, and integrations available.
Checkout: Best Account Payable Automation Software
When it comes to nanny payroll software, an ideal system should include both direct deposit and check printing features. Some nannies prefer having their funds automatically deposited, while others like having a cashable check in their hand. Having both of these payment options available ensures everyone’s needs are met. Additionally, automating payments saves time and makes the entire process that much smoother.
Built-in tax preparation tools allow the user to avoid additional costs associated with using separate solutions. Accurate reporting and meeting filing deadlines are a big issue when it comes to state and federal tax payments, and those who don’t follow regulations may incur penalties and fines.
The best nanny payroll systems will have pre-built integration with tools such as accounting, HR, banking, and tax filing systems. The ability to integrate with these tools is beneficial by allowing users to create a customized system that fulfills all their needs.
What Is Nanny Payroll Software?
Nanny payroll software assists users with payroll management and tax payments. The software can help with calculating taxes, maintaining organized records, displaying information in an easy-to-read format, and ensuring all filings are compliant with the IRS.
This type of software is commonly used in households that employ caretakers, nannies, babysitters, maids, and personal assistants. Manually managing multiple employees can get bothersome and cause confusion, and nanny payroll software provides users with a way to track all the necessary information using technology.
Features such as direct deposit, check printing, vacation tracking, benefits management, and tax preparation tools assist users with handling payroll. These features help users track the total numbers of hours worked, prevent scheduling conflicts, and automate the payment process.
Most nanny payroll systems come with a user interface that can be deployed on many operating systems. A good understanding of how software and technology works can help users make the most of their nanny payroll system.
Benefits of Nanny Payroll Software
There are many benefits to using nanny payroll software. Data can be organized and easily accessed by users, saving them time and summarizing all the information necessary to help them file tax documents quickly and accurately.
Another benefit to using nanny payroll software is its ability to streamline the payment process, which helps users cut costs and use their time more efficiently.
Tax preparation tools can also assist users by reducing the likelihood of incurring penalties and fees associated with incorrect tax filings. Overall, nanny payroll software provides users with convenience and peace of mind by automating the chore of paying household employees.
Must-Have Features for Nanny Payroll Software
Nanny payroll software saves users time and provides them with tools for organized tax filings. If you’re looking to make the payment process as simple as possible, here’s a list of must-have features.
- Ability to integrate with other systems: Nanny payroll software is oftentimes used alongside other systems. Having the ability to integrate with third-party software allows users to customize the platform to their needs.
- Reporting tools: Reporting tools provide an overview of metrics such as hours worked, wages paid, and who provided services on which days. This feature is useful for users who like having their payroll data organized and easily accessed.
- Direct deposit feature: This feature allows employers to deposit funds directly into household employees’ bank accounts. For users who want to make the payment process as simple as possible, a direct deposit feature is essential
- Check printing: Some employees prefer to be paid via a physical check over having their funds deposited automatically. Nanny payroll software that includes a check printing feature saves users time by allowing them to print employees’ paychecks directly from the system itself.
- Benefits management: Benefits management features allow users to access employee benefits, handle recordkeeping, and see which benefit plans employees fall under.
- 401(k) tracking: Nanny payroll software that provides 401(k) tracking allows employers to monitor how much their employees are contributing. It also helps employees measure their own contributions and check if they’re meeting their yearly goals.
- Vacation and leave tracking: Vacation and leave tracking features allow your household employees to coordinate their days off and provide you with ample notice so you can prevent scheduling mix-ups and confusion.
- Tax preparation tools: Tax preparation tools can help you avoid penalties and fees by organizing your documents and ensuring everything is compliant with strict IRS filing standards.
The Cost of Nanny Payroll Software
The cost of nanny payroll software varies depending on your choice. Some companies use a subscription-based model, while others require a one-time fee, which may also come with contract commitments for a set period of time.
For subscription-based payment models, users can expect to pay anywhere from $39 a month to $180 per year. Flat fee payments start at $35 and increase in price based on the number of users. Some companies may charge additional fees depending on the number of users, which is another factor that should be considered.
Our recommendation is to prioritize the features you need and weigh them against the price of the software. Not all nanny payroll software programs offer the same features, and this can affect the total price.
808Nanny is a boutique nanny agency based in Hawaii. The agency partners with Homework Solutions, a payroll and tax specialist for household employees. Homework Solutions offers a number of nanny payroll services, such as tracking net pay, pay stub distribution, compliance, and responding to the IRS and state inquiries, as well as the preparation and filing of year-end tax returns, all on your behalf.
Users can choose the payroll service level that fits their needs. Homework Solutions offers two plans: Essential, priced at $150 per quarter, and Complete, priced at $220 per quarter for biweekly and $225 per quarter for weekly payroll. Text alerts notify users when tasks are completed.
GTM Payroll Services
GTM Payroll Services provides payroll services and handles household and business taxes. Its services include:
- Tax filings and automated withholdings
- Year-end tax preparation
- Simple payroll setup with online updates
- Additional benefits such as 401(k) plans and health and workers’ compensation insurance
- Nanny background checks
The company’s solutions can be scaled to fit small and medium-sized businesses, as well as large employers and corporations. Additionally, GTM Payroll Services offers instant payroll and reporting data, optimized payroll processes, 24/7 online access, and personalized customer care to save users time and money.
Pricing begins at $65 per month for GTM’s nanny tax and payroll services. Pricing for business services is available by custom quote.
HeartPayroll removes the complications of payroll and taxes associated with employing a nanny or caregiver. The company’s services include paying caregivers via direct deposit, registering employers with the Canada Revenue Agency (CRA), and summarizing and filing all T4 forms.
Users and caregivers can receive pay stubs and receipts for their own records. HeartPayroll also takes care of all calculations, such as net and gross pay, taxes, CPP, and EI, saving users time and ensuring all payments are correct and submitted before filing deadlines.
HeartPayroll’s services start at $46.99 per month and include access to a payroll expert who can answer any questions. The company also offers an optional WSIB/WCB registration and remittance add-on service for an additional $10 per month. Users who wish to opt into just a single service can look into customized pricing options.
Homepay helps users simplify the household employment process. The company offers services for tax preparation and filing, scheduling payroll from any device, HR support, and budget planning.
Users can log into their online dashboard to see a summary of all information related to filings, tax payments, hours worked, and cost calculations. This account can be accessed from any desktop operating system or mobile device, allowing users to update nanny hours and rates from anywhere in the world. Email reminders update users when paperwork is completed, with scheduled automatic payments that make the process hassle-free.
Homepay’s services are priced at $75 per month and come with a six-month money-back guarantee and service guarantee. Users can opt for a 30-day free trial with no commitments or hidden fees.