Author Topic: Services for Paying Nanny Tax/Payroll  (Read 920 times)

Michael in ABQ

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Services for Paying Nanny Tax/Payroll
« on: September 10, 2019, 08:35:17 PM »
I am preparing to deploy overseas and we are going to be hiring one of our children's former teacher to help my wife out in the evenings with our kids. We've agreed on an hourly rate and anticipate she'll work about 10-12 hours per week.

I am looking for any recommendations for a service to handle payroll - especially as it relates to the so-called nanny tax and payroll withholdings. We didn't really get into the details when we agreed on an hourly rate but I want to do the right thing and pay the payroll taxes so that her net hourly rate is what we agreed on.

I've found a couple of services and I looks like they charge anywhere from $40 - $60 per month, plus possible setup fees, plus year-end fees.

Knapptyme

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Re: Services for Paying Nanny Tax/Payroll
« Reply #1 on: September 11, 2019, 07:59:26 AM »
It should not be that difficult to set this up yourself. We did. It amounted to setting up either a sole proprietor/business for an EIN, keeping track of FICA (documenting the employer and employee side), and then paying in both to quarterly or annual taxes. We also had to file and pay unemployment taxes to our state. Not bad at all especially if you already know the nanny-to-be.

FWIW: When I shopped around, I looked into care.com. Then, the mustachian in me realized I should try it on my own.

TVRodriguez

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Re: Services for Paying Nanny Tax/Payroll
« Reply #2 on: September 24, 2019, 12:05:41 PM »
I don't have a recommendation, I have a "stay-away-from" comment.  I used Quickbooks Online to do this for a summertime nanny a few years ago, and it totally messed me up.  I had to spend lots of time fixing it come tax time, filing an amended return and all sorts of stuff.  I forget the specifics, but it was a mess.

sneeds

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Re: Services for Paying Nanny Tax/Payroll
« Reply #3 on: October 01, 2019, 11:43:33 AM »
I use NannyChex: https://www.nannychex.com/

The service costs $12.50 per pay period (every two weeks), so about $25 a month. They handle all the tax stuff, medicare and social security payments, etc. Each year at tax time they provide me with the completed Schedule H that I submit with my taxes. They make it all pretty easy.

MicroRN

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Re: Services for Paying Nanny Tax/Payroll
« Reply #4 on: October 01, 2019, 05:12:43 PM »
We used GTM payroll services.   The price was pretty reasonable,  and they managed direct deposit for us.   All I did was enter her timesheet every week and they did everything else.   They will calculate everything based on net pay if that's what you prefer.

Lucky Penny Acres

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Re: Services for Paying Nanny Tax/Payroll
« Reply #5 on: October 01, 2019, 05:45:23 PM »
We also use GTM payroll services.  I think my wife found some recommendations online on several sites pointing us to GTM.

I don't even need to enter the timesheets weekly - you can set an automatic recurring number of hours unless you actively change it - which is a big help as I know I would otherwise overlook it more weeks than not which would cause our nanny to get paid late.

lutorm

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Re: Services for Paying Nanny Tax/Payroll
« Reply #6 on: October 02, 2019, 03:54:06 PM »
We used a local service when we hired our nanny. We thought about doing it ourselves but in addition to taxes/payroll the company also handled workers comp insurance and healthcare (we were hiring full time), so that pushed us over the edge.