The best nanny payroll services of 2023
Compare the top nanny payroll software options for childcare employers of all sizes.
If your family has the budget, paying for nanny services can help you easily balance work and childcare. Often, the most challenging parts of hiring a nanny are finding the best fit for your family and deciding the best way to pay them for their services. Luckily, several nanny payroll services can help you figure out how to do that and even automate many of the tasks you have on your plate.
Feature comparison table
|Automatic tax filing||Yes||Yes||Yes||Yes||Yes||Yes|
|Unlimited payroll runs||Yes||Yes||No||Yes||No||Yes|
|Employee self-service tools||Yes||Yes||Yes||Yes||Yes||Yes|
Top nanny payroll services of 2023
The best nanny payroll services should be easy to use, best-suited for beginners and chock-full of features to make paying your nanny for their services a breeze. Here are the top picks to consider if your family uses a nanny for child care.
Gusto: Best for easily filing taxes
Gusto is an award-winning, all-in-one payroll solution that works well for those paying a nanny to take care of their children. It comes with features to help you pay employees and contractors, keep track of time worked, and can stay in compliance with payroll taxes.
It’s important to properly classify your nanny as an employee or contractor. Research shows that 10-20% of employees misclassify their employees as independent contractors, which can result in fines. You can find information on proper classification requirements in the US on the IRS website.
- Automatically file payroll taxes.
- Unlimited payroll and clear pricing.
- Hiring and onboarding.
- Insights and reporting.
- State tax registration in all 50 states.
- Tracks changing laws to keep you compliant.
- Time tracking with geolocation.
- It could be expensive for families with tight budgets.
- No invoicing or accounts receivable features.
Three pricing plans: Simple ($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 run payroll in as little as 90 seconds. It has helpful features such as automatic tax filing, reporting, time and attendance, and over 500 integrations.
Another reason to consider using Rippling is its mobile app. You can download Rippling on the Google Play Store to easily manage your nanny services on the go.
- Time and attendance.
- Expense management.
- Benefits administration.
- Task automation for ease of use.
- Offers pre-built workflow templates.
- Useful for businesses with one employee.
- Send payments via direct deposit or check.
- Customer service could be improved.
- Custom reporting can be challenging.
- Starts at $8 per month per user.
Paychex: Best for employee self-service
Paychex is another potential option for your nanny payroll services. The company can accommodate businesses with one employee or thousands. Paychex Flex is its HR and payroll service for small businesses, and it’s quite affordable, considering how many features you get.
- Online employee self-service.
- Payroll dashboard with configurable views.
- New-hire reporting to government agencies.
- Robust reporting and analytics.
- 24/7 US-based customer service.
- Easy to switch from a different service to Paychex.
- Simple business taxes.
- Extra fee for payroll tax filing.
- Does not offer time tracking for employees.
- Plans start at $39 per month plus $5 per employee.
Justworks: Best for external integrations
Justworks is an easy 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 tax, as it does the heavy lifting and has tools for W2s, 1099s and payroll reports.
- Payroll tax filings.
- One-off and overtime payments.
- Automated deposits for employees.
- Sync timesheets to payroll.
- IRS-certified and ESAC-accredited.
- Integrations with QuickBooks, Xero and QBO.
- Manage PTO and onboarding.
- May be expensive for families.
- Customer service can be slow.
- Basic plan is $59 per month.
- Plus plan is $99 per month.
Papaya Global: Best for employers on a budget
Papaya Global is another all-in-one payroll solution to consider for your nanny. The vendor serves notable clients like Microsoft, Canva, Wix, Toyota, Shopify and Vimeo. According to its official website, Papaya can offer payroll, tax, compliance and onboarding services to employees.
- Salary updates.
- Automated payment processing.
- Good for businesses with employees or contractors.
- Compliance engine to help you follow regulations.
- Auditing to identify payroll discrepancies.
- Navigation can be challenging.
- Can take a long time for system issues 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 site, the solution automates all the “hard stuff” so you can focus on other life responsibilities outside of paying your nanny.
- Full-service payroll.
- All tax filings and payments for W-2 and 1,099 workers.
- Software integrations.
- One month free trial.
- Backed by payroll experts.
- Switching from other platforms is easy.
- Lack of scalability.
- Limited software integrations.
How to choose the right nanny payroll service
There are several types of nanny payroll services to suit your family. However, it’s still challenging to know which one is better.
OnPay is likely your best choice 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 for you unless you have more than one nanny.
Gusto and rippling are good options if you need clarification on payroll tax requirements. The last thing you want is failing to comply with payroll taxes, and compliance and taxes are automated with these solutions.
Paychex is helpful if you’re new to paying a nanny because of its 24/7, US-based payroll support. Papaya is a good option to save money on your payroll software, as its monthly base plan is only $20. Justworks is the best platform if you need an all-in-one solution and can afford a $59 monthly payment.
Choosing the best nanny payroll service in 2023
No two nanny payroll service platforms are the same, as you’ll get various features and capabilities at different prices. The six options above are helpful if you want to take care of your nanny’s payroll with ease, as they’re considered “all-in-one” solutions. 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 will help make your decision easier.