The best nanny payroll in 2023
Compare the best nanny payroll software for childcare employers of all sizes.
If the family has the budget, you can easily balance work and childcare by paying for nanny services. The hardest part of hiring a nanny is often finding the best fit for your family and determining the best way to pay for their services. Fortunately, there are many nanny payroll services that can help you figure out how to do this and even automate many of the tasks that are on your plate.
Feature comparison chart
|Function||Taste||Wavy||Paychex||It just works||Papaya Global||OnPay|
|Automatic tax return||Yes||Yes||Yes||Yes||Yes||Yes|
|Unlimited number of payrolls||Yes||Yes||No||Yes||No||Yes|
|Employee input functions||Yes||Yes||Yes||Yes||Yes||Yes|
|Employee self-service tools||Yes||Yes||Yes||Yes||Yes||Yes|
Best nanny payroll services of 2023
The best nanny payroll services should be easy to use, best for beginners, and packed with features that make it easy to pay your nanny for their services. Here are the top choices to consider if your family uses a nanny for childcare.
Gusto: Best for tax returns
Gusto is an award-winning all-in-one payroll solution that works well for those who pay a nanny to care for their children. It has features to help you pay employees and contractors, track time worked, and comply with payroll taxes.
It is important to correctly classify your nanny as an employee or contractor. Research shows that 10-20% of employees rate their employees poorly as an independent contractor, which may result in fines. You can find the appropriate classification requirements in the United States on the IRS website.
- Automatic reporting of payroll taxes.
- Unlimited payroll and clear prices.
- Admission and enrollment.
- Insights and reports.
- State tax filing in all 50 states.
- Tracks changing laws to meet requirements.
- Time tracking with geolocation.
- It can be expensive for families on a tight budget.
- There are no invoicing or accounts receivable functions.
Three pricing plans: Basic ($40/month), Plus ($60/month), and Premium (contact Gusto for details).
Rippling: Best for small businesses
Rippling is another workforce management and payroll service. According to Rippling’s website, you can complete payroll in as little as 90 seconds. It has useful features such as automatic tax filing, reporting, timekeeping and more than 500 integrations.
Another reason to use Rippling is its mobile app. you know download Rippling from the Google Play Store so that you can easily manage the nanny services on the go.
- Time and attendance.
- Cost management.
- Administration of benefits.
- Task automation for ease of use.
- It offers pre-built workflow templates.
- Useful for businesses with one employee.
- Send payments by direct deposit or check.
- Customer service could be improved.
- Custom reporting can be challenging.
- It starts at $8 per user per month.
Paychex: Best for employee self-service
Paychex is another possible option for nanny payroll services. The company can host businesses with one or several thousand employees. Paychex Flex is an HR and payroll service for small businesses, and it’s quite affordable for how many services you get.
- Online employee self-service.
- Payroll dashboard with configurable views.
- Reporting new employees to government agencies.
- Robust reporting and analysis.
- 24 hour US customer service.
- You can easily switch from another service to Paychex.
- Simplified business taxes.
- Extra fee for payment tax return.
- Does not offer time tracking for employees.
- Plans start at $39 per month, plus $5 per employee.
Justworks: Best for external integrations
Justworks is a simple payroll service platform that works well for all types of businesses – even those with one employee. The solution can help you stay compliant with employment regulations and payroll taxes by handling the heavy lifting and providing tools for W2s, 1099s and payroll.
- Payroll tax returns.
- One-time and overtime pay.
- Automated deposit for employees.
- Synchronization of time records with payroll.
- IRS certified and ESAC accredited.
- Integration with QuickBooks, Xero and QBO.
- Manage PTO and installation.
- It can be expensive for families.
- Customer service can be slow.
- The basic plan is $59 per month.
- The Plus plan is $99 per month.
Papaya Global: Best for employers on a budget
Papaya Global is another all-in-one payroll solution you should consider for your nanny. The vendor serves notable clients such as Microsoft, Canva, Wix, Toyota, Shopify, and Vimeo. According to its official website, Papaya can offer payroll, tax, compliance and onboarding services for employees.
- Payment updates.
- Automated payment processing.
- Good for businesses with employees or contractors.
- A compliance engine that helps you stay compliant.
- Check to identify payroll discrepancies.
- Navigation can be challenging.
- System problems can take a long time to resolve.
- $20 per month for payroll or $25 per month for contractor management.
OnPay: Best for full-service payroll
OnPay is a simple, easy-to-use payroll software for small businesses. According to OnPay’s website, the solution automates all the “hard stuff” so you can focus on other life tasks besides paying the nanny.
- Complete payroll.
- All tax returns and payments for W-2 and 1099 employees.
- Software integrations.
- One month free trial.
- With the support of payroll experts.
- Switching from another platform is easy.
- It lacks scalability.
- Limited software integrations.
How to choose the right nanny payroll service
There are many nanny payroll services to suit your family. However, it is still difficult to know which one is the best.
OnPay is probably your best bet if you’re looking for a small business solution. It is best suited for companies with a limited number of employees. This option will work well unless you have more than one nanny.
Gusto and Rippling are good choices if you need to clarify payroll tax requirements. The last thing you want is to fall out of compliance with your payroll taxes, and these solutions automate compliance and taxes.
Paychex’s 24/7 US payroll support is helpful if you’re not already dealing with paying a nanny. Papaya is a good option to save money on your payroll software, as its basic plan is only $20 per month. Justworks is the best platform if you need an all-in-one solution and can afford the $59 monthly fee.
Choosing the best nanny payroll service in 2023
No two nanny payroll service platforms are the same, as you can get different features and capabilities at different prices. The above six options are useful if you want to easily take care of paying your nanny, as they are an all-in-one solution. When choosing the right payroll service provider, be sure to speak with a representative to learn more about the ins and outs of their solution. This makes the decision easier.