A Parent’s Guide to Nanny Payroll: Setting Up Payroll for Your Childcare Provider
BY ELISE SILVER AND HEATHER RUSSELL
Congratulations on finding the perfect nanny to care for your little one! As you prepare for this exciting new chapter, one important aspect to consider is establishing payroll for your nanny. Payroll not only ensures that your nanny is compensated fairly and legally, but it also helps you stay organized and compliant with tax laws. In this blog post, we’ll walk you through the steps of setting up payroll for your nanny and provide recommendations for payroll services.
Options for Payroll Services:
Quickbooks: Quickbooks is a popular choice for small businesses, including household employers. While it offers robust payroll features, it does require a significant amount of hands-on time to set up and manage.
SurePay: SurePay is a trusted payroll service used by many families and agencies for nanny payroll. They offer comprehensive services at an affordable price and handle all tax-related matters, making payroll management hassle-free.
GTM Payroll: GTM Payroll specializes in payroll services for household employers and parents. They provide full-service payroll solutions, handling everything from tax filings to compliance, but they come at a higher cost compared to other options.
Steps to Set Up Nanny Payroll:
Obtain Federal and State Tax IDs: Before you can begin paying your nanny, you’ll need to obtain a Federal Employer Identification Number (FEIN) from the IRS. Additionally, if you’re a resident of North Carolina, you’ll also need to obtain a state tax ID.
Choose a Payroll Service: Evaluate the options available and choose a payroll service that best suits your needs and budget. Consider factors such as cost, services offered, and ease of use.
Gather Nanny Information: Collect necessary information from your nanny, including their full name, Social Security number, and mailing address.
Set Up Payroll Account: Once you’ve chosen a payroll service, follow their instructions to set up your payroll account. This typically involves providing basic information about your household and your nanny.
Enter Nanny Details: Enter your nanny’s information into the payroll system, including their pay rate, pay schedule, and any applicable deductions or benefits.
Run Payroll: With your payroll account set up and nanny information entered, you can now run payroll according to your agreed-upon schedule. Most payroll services offer user-friendly interfaces that make running payroll a breeze.
Remit Taxes and Filings: Your chosen payroll service will handle tax withholdings and filings on your behalf. Make sure to review and approve tax filings before they are submitted to ensure accuracy and compliance.
By following these steps and utilizing a reliable payroll service, you can establish a seamless payroll process for your nanny. Not only does this ensure that your nanny is compensated fairly and on time, but it also helps you fulfill your legal obligations as a household employer. If you have any questions or need assistance with setting up nanny payroll, don’t hesitate to reach out to us for guidance.
Here’s to smooth sailing and happy caregiving with your wonderful nanny!
