Best Nanny Payroll Services 2026: Household Employer Guide
Last update at June 24, 2026
The best nanny payroll services handle the part of hiring a nanny that trips up most families: payroll taxes. If you pay a nanny $3,000 or more in 2026, you are a household employer, which means Social Security and Medicare taxes, a Schedule H with your 1040, a W-2 for your nanny, and state filings. This guide ranks five nanny payroll services by who they fit best, with verified pricing, and includes a full household employer tax guide so you know exactly what you owe before you pay for help.
Table of Contents
Best nanny payroll services at a glance
Each service below is full-service, meaning it calculates taxes, files them, and produces your Schedule H and W-2. The cheapest path is doing it yourself, but a service removes the deadlines and state notices.
| Service | Best for | Price (2026) | Standout |
|---|---|---|---|
| SurePayroll (Nanny) | Best overall value | Approx. $45/month | Paychex-backed, Schedule H and W-2 included |
| HomePay (Care.com) | Hands-off families and complex states | $59 to $75/month | State tax notice handling, EIN setup on Premium |
| Poppins Payroll | Flat mid-price, no tiers | $49/month | Simple flat fee, first month free |
| GTM EasyPay | White-glove household HR | Approx. $70/month | Dedicated support and household HR depth |
| NannyPay | DIY software, lowest cost | Annual license (you file) | Calculates taxes, you handle filings |
Do you even need a nanny payroll service?
Be honest about this before you pay a monthly fee. A nanny payroll service does two things: it calculates the right taxes each pay period, and it files the paperwork (W-2 to the Social Security Administration, Schedule H, and state unemployment returns). The calculations are not hard, and the filing takes most families about 15 minutes per quarter using IRS and state websites. What you are really buying for $45 to $75 a month is convenience, deadline tracking, and someone to answer state tax notices for you. If you pay $30,000 or more a year, employ in a high-complexity state (California, New York, Illinois, Washington, Massachusetts, or DC), or simply never want to think about it, a service earns its fee. If you pay a small amount and are comfortable with forms, doing it yourself is a legitimate, cheaper option. The household employer tax guide below shows exactly what the work involves.
The 5 best nanny payroll services for 2026
1. SurePayroll (Nanny): best overall value
SurePayroll, owned by Paychex, runs a dedicated nanny and household payroll product that is the best value for most families. It calculates and files federal and state taxes, runs unlimited payroll, and includes a signature-ready Schedule H and W-2 in the service. Pricing is about $45 per month, the lowest among the full-service household-focused providers, and the Paychex backbone means enterprise-grade tax filing. It is not as household-boutique as HomePay, but for reliable, affordable nanny payroll it is hard to beat. See our SurePayroll review.
2. HomePay by Care.com: best for hands-off families
HomePay, built on the long-running Breedlove household payroll business and owned by Care.com, is the most hands-off option. Its real differentiator is state tax notice handling: notices go directly to HomePay, and they respond on your behalf. The Premium tier also sets up your EIN and state tax IDs for you. Pricing is $59 per month for Basic and $75 per month for Premium, the priciest here, but the household-specific design and notice handling justify it for families who want to delegate everything. If you found your nanny through Care.com, the integration is seamless.
3. Poppins Payroll: best flat-price option
Poppins Payroll keeps it simple with one flat plan at $49 per month and no upsell tiers. It files your nanny taxes, produces year-end forms, and runs in all states, with a first month free for new families. It does not include the white-glove state-notice handling of HomePay, but for a transparent, mid-price full-service option with no surprises, Poppins is a strong middle ground between SurePayroll’s value and HomePay’s premium service.
4. GTM EasyPay: best for white-glove household HR
GTM Payroll’s EasyPay product targets families who want dedicated support and deeper household HR, including workers’ compensation guidance and help with more complex household employment situations. Pricing is approximately $70 per month. It sits near HomePay on price and service depth, and fits families employing multiple household workers or those who want a specialist to call. For a single nanny on simple pay, it is more than most families need.
5. NannyPay: best DIY software
NannyPay is desktop and cloud software for families who want to calculate nanny taxes correctly but file the paperwork themselves. It computes withholdings, tracks pay, and prepares the numbers you need for Schedule H and the W-2, at a low annual license cost rather than a monthly service fee. You stay responsible for actually filing and meeting deadlines. For budget-focused, hands-on families who are comfortable with the forms, it is the cheapest way to stay accurate.
Nanny payroll service pricing compared (2026)
Most nanny payroll services charge a flat monthly fee rather than a per-employee fee, since families usually employ one or two workers. On top of the service fee, expect employer taxes of roughly 9 to 12 percent of wages.
| Service | Monthly price | Files taxes for you | Schedule H and W-2 | State notice handling |
|---|---|---|---|---|
| SurePayroll (Nanny) | Approx. $45 | Yes | Included | Standard |
| HomePay (Care.com) | $59 to $75 | Yes | Included | Yes, handled for you |
| Poppins Payroll | $49 | Yes | Included | Standard |
| GTM EasyPay | Approx. $70 | Yes | Included | Yes |
| NannyPay | Annual license | No, you file | Prepares numbers | No |
Pricing changes often, and several providers run new-customer promotions (a free month is common). Confirm current pricing directly with each service before signing up.
Household employer tax guide: what you owe in 2026
This is the part the services automate, and the part you need to understand whether you use one or not. If you control how and when your nanny works, they are your employee (W-2), not an independent contractor.
The two thresholds that make you a household employer
Two separate numbers matter, and families routinely catch one and miss the other. If you pay any one household employee $3,000 or more in cash wages in 2026 (up from $2,800 in 2025), you owe Social Security and Medicare (FICA) taxes on all their wages. Separately, if you pay $1,000 or more in cash wages in any calendar quarter, you owe federal unemployment tax (FUTA). The two are independent: you can owe one without the other. From 2027, the FICA threshold is indexed annually.
What FICA and FUTA cost
FICA is 15.3 percent of wages total, split as 7.65 percent withheld from your nanny (6.2 percent Social Security plus 1.45 percent Medicare) and 7.65 percent paid by you as the employer. FUTA is 6.0 percent on the first $7,000 of wages, but paying your state unemployment tax on time earns a credit that drops the effective rate to 0.6 percent, about $42 per year. Federal income tax withholding is optional for household employers: you only withhold it if your nanny asks you to using a Form W-4.
You need an EIN and a Schedule H
As a household employer you need a federal Employer Identification Number, which is free and takes a few minutes to get from the IRS. You report household employment taxes once a year on Schedule H, attached to your personal Form 1040, not on quarterly business forms. Because Schedule H taxes are due with your income tax, set money aside or make estimated payments during the year so you do not face an underpayment penalty in April.
State taxes and W-2 deadlines
Every state requires household employers to register for and pay state unemployment insurance, with rates and wage bases that vary widely. Some states add disability or paid-leave contributions. You must also give your nanny a Form W-2 by January 31 and file it with the Social Security Administration. Verify your nanny’s work eligibility with Form I-9 at hire.
Who is exempt
You generally do not owe FICA on wages paid to your spouse, your child under age 21, your parent (with some exceptions), or an employee under 18 whose principal job is not household work (a student babysitter, for example). When in doubt, IRS Publication 926 covers the exceptions.
Tax breaks that offset the cost
The gross numbers look large, but two benefits reduce the real cost. A Dependent Care FSA at your job lets you pay up to a set amount of care costs with pre-tax dollars, and the Child and Dependent Care Credit (Form 2441) can cover 20 to 50 percent of qualifying expenses up to $3,000 for one child or $6,000 for two or more. Paying your nanny legally is what makes you eligible for these.
How to pay your nanny legally, step by step
- Confirm employee status. A nanny you direct is a W-2 employee, not a 1099 contractor.
- Get an EIN. Apply free on the IRS website before the first payday.
- Collect forms. Have your nanny complete Form I-9, and a W-4 if they want income tax withheld.
- Register with your state. Set up state unemployment insurance and any state withholding accounts.
- Run payroll. Each pay period, withhold the nanny’s 7.65 percent FICA share and pay net wages with a pay stub.
- Set aside taxes. Reserve your employer share plus the withheld amounts for your Schedule H.
- File year-end. Issue the W-2 by January 31, file Schedule H with your 1040, and pay state filings.
How we chose the best nanny payroll services
We ranked services on what matters to a household employer, not marketing claims:
- Full-service filing. Does it file federal and state taxes and produce Schedule H and W-2?
- Household-specific design. Is it built for families, including state tax notice handling?
- Price and transparency. Flat fee, clear tiers, and no surprise charges.
- State coverage. Does it handle registration and filings in all states?
- Support. Can you reach a person who understands household employment?
Frequently asked questions
What is the best nanny payroll service?
For most families, SurePayroll’s nanny product is the best value at about $45 per month with Schedule H and W-2 included. HomePay is best for hands-off families who want state tax notice handling, at $59 to $75 per month. Poppins Payroll is a strong flat-price middle option at $49. The best choice depends on your budget, your state, and how much you want to delegate.
How much does a nanny payroll service cost?
Full-service nanny payroll runs about $45 to $75 per month: SurePayroll around $45, Poppins $49, GTM around $70, and HomePay $59 to $75. DIY software like NannyPay costs less as an annual license but you file the paperwork yourself. On top of the service fee, plan for employer taxes of roughly 9 to 12 percent of wages.
Do I have to pay taxes on my nanny in 2026?
Yes, if you pay one household employee $3,000 or more in 2026, you owe Social Security and Medicare taxes on all their wages. If you pay $1,000 or more in any calendar quarter, you also owe federal unemployment tax. You report these on Schedule H with your Form 1040 and give your nanny a W-2.
What is the nanny tax threshold for 2026?
The 2026 nanny tax threshold for Social Security and Medicare is $3,000 in cash wages to any one household employee, up from $2,800 in 2025. The federal unemployment tax threshold is separate: $1,000 or more in any single calendar quarter. From 2027, the FICA threshold is indexed annually.
Can I pay my nanny as a 1099 contractor?
Almost never. If you control how, when, and where your nanny works, the IRS considers them your employee, so they get a W-2, not a 1099. Misclassifying a nanny as a contractor to avoid employer taxes is a common error that can lead to back taxes and penalties. A nanny is a household employee in nearly all cases.
What is Schedule H?
Schedule H is the IRS form household employers use to report and pay Social Security, Medicare, federal unemployment tax, and any income tax withheld for a household employee. It attaches to your personal Form 1040 and is filed once a year, not quarterly. Nanny payroll services calculate and prepare it for you.
Do I need an EIN to pay my nanny?
Yes. As a household employer you need a federal Employer Identification Number to file employment taxes and issue a W-2. It is free and you can usually get it online from the IRS in a few minutes. You do not use your Social Security number for this.
Can I do nanny payroll myself instead of using a service?
Yes. The calculations are straightforward and filing takes most families about 15 minutes per quarter using IRS and state websites. A service is worth paying for if you want deadline tracking, state tax notice handling, or simply do not want to manage it. For simple situations and budget-focused families, DIY or low-cost software is a legitimate choice.
