NannyChex offers a comprehensive nanny payroll and tax service for household employers. Our white glove customer service and straightforward pay as you go pricing makes NannyChex the best option for paying a nanny and navigating the complex nanny tax requirements. NannyChex works with customers in all 50 states and we handle all local taxes. Since 1995, our personal service, superior value, and expertise have established NannyChex as a leader in the household payroll industry.
What is the nanny tax? Is my nanny an employee?
The nanny tax is the collective term used to describe the taxes that a family is responsible for when they have someone working in their home. The nanny tax applies to nannies who work part-time, full-time, seasonally, before or after school, over the summer and more. Additionally, the Nanny Tax applies to all household employees, even if their title or job responsibilities differs from being a traditional nanny: a regular babysitter, caregiver, learning pod teacher, tutor, and more may all be subject to the nanny tax.
If you employ someone who works in your home and they earn $2400 or more in gross wages, Social Security and Medicare tax withholdings are required. Social Security and Medicare taxes (FICA) are paid by both the employer and employee. Other employee/employer taxes may be required at lower earnings thresholds and there may be additional taxes depending on where you live.
Under the IRS definition of an employee, and because of the circumstances and nature of the work being performed by nannies and other household workers with similar caretaking duties, they are generally classified as a household employee requiring wage withholding from payroll, tax filings, and a year-end W-2.
How NannyChex can help
NannyChex makes the nanny payroll and tax process easy and worry-free. The IRS estimates that a household employer will spend 40-60 hours annually on their payroll and taxes. To make matters worse, if an individual makes a mistake, the potential consequences could be costly and time-consuming. Outsourcing to NannyChex saves you time, money and risk. We process your employee’s payroll, handle the taxes, complete the year-end tax forms, and our work is guaranteed.
What NannyChex does
- Free Set-up FEIN with the IRS
- Free Set-up of State and Local Employer tax accounts
- Point of contact for tax agencies
- Manage and handle tax notices and correspondence related to nanny taxes
- Maintain tax records
- File New Hire report with the state tax authority
- Local, State, and Federal quarterly tax filings including tax remittance
- Year-end Preparation of W-2, W-3, and Schedule H
- Direct Deposit payroll processing
- Calculate Employee’s net pay and tax withholdings
- Dedicated Employer and Employee web portal for pay stubs and other payroll information
- Pay on the frequency you choose
- Payroll your way – pay fixed hours each period or report the hours check by check
- Pay as you go pricing – if you don’t process a check, you don’t pay a fee
- Maintain payroll records
- Sick, vacation, PTO tracking at no additional charge
White Glove Service
- Free initial consultation
- Free Set-up and Registration
- Dedicated account representative available by phone and email
- Unlimited free assistance regarding payroll, taxes, and year-end tax forms
- Workers Compensation audits handled for no additional charge
- Employment Verifications for no added charge
- Unemployment Insurance Claims for no additional charge