5 Best Nanny Payroll Services of 2026
Paying a nanny isn’t as simple as running a small business payroll. The moment you hire a household employee, you take on a different set of tax and compliance responsibilities.
I’ve found that the biggest challenge for household employers isn’t running nanny payroll itself, it’s staying compliant. Missing a filing or misclassifying a worker can lead to penalties that cost far more than the software. The best nanny payroll service removes that risk by automating filings, guiding setup, and keeping records organized.
To build this guide, I evaluated seven nanny payroll services and narrowed the list down to my top five picks.
For a fully hands-off experience, I recommend starting with Poppins Payroll or HomeWork Solutions. If you prefer a lower-cost, simpler setup, SurePayroll, Nest Payroll, or Savvy Nanny Payroll are better fits.
NannyPay didn’t make my top five, but it’s a solid option for household employers who are comfortable handling tax payments and filings. It offers a cloud-based nanny payroll software with automatic pay calculations and tax form support. At $199.95 per year for up to three employees, it’s a cost-effective choice for families that want more control without paying for full-service payroll help.
The Fit Small Business editorial process follows strict standards to ensure that our best answers are founded on the basis of accuracy, clarity, authority, objectivity, and accessibility.
For this guide, I compared popular nanny payroll services and software, evaluating each using the same scoring method based on nanny pay functionalities, pricing, customer support, and overall system performance. I reviewed product walkthroughs and leveraged free trials or free plans, if available, to test the system’s different features.
In addition to the scoring rubric, my recommendations are based on more than eight years of experience writing about and evaluating HR solutions for small to mid-sized businesses (SMBs). I also have 10 years of expertise in handling different facets of human resources, including managing HR software. These allowed me to provide insights to help business owners and employers determine which platform best fits their needs.
See my full methodology below.
Payroll & HR Software Expert at Fit Small Business
A quick comparison of the best nanny payroll services
*These fees include one household employee, except for Savvy Nanny Payroll’s, which covers two workers.
**Some features may cost extra.
Do you want to learn more about paying nanny taxes? Our guide to nanny taxes has all the information you need to know about calculating and paying nanny taxes, including the tax forms that household employers need to submit.
Poppins Payroll: Best overall nanny payroll service
Pros
- Files federal, state, and local payroll taxes
- Handles EIN and payroll setup for new household employers
- Flat monthly rate, with transparent pricing
Cons
- No dedicated payroll specialist
- Weekend support unavailable
- Lacks time tracking features
Why I recommend Poppins Payroll
Poppins Payroll topped my list of the best nanny payroll services because it makes nanny payroll feel less intimidating, especially for first-time household employers. Instead of making you figure out payroll calculations, tax withholdings, filings, and setup on your own, it brings those pieces together in one service with one monthly price.
It also lets you pay your nanny by direct deposit or manual paychecks, tracks PTO and sick leave, and keeps pay stubs and tax documents in one place. I like that it stays focused on household payroll instead of trying to act like a broader payroll platform. That makes it easier to understand and use for families who just want to pay their nanny correctly and stay compliant.
However, if you need help fixing back taxes, Nest Payroll is a stronger option and makes the process easier to manage. For more hands-on payroll and tax support, HomeWork Solutions is a better fit.
- $49 monthly for one household employee
- $10 monthly for each additional employee
- Guides you through setting up your household as an employer
- Calculates your nanny’s pay and withholds the correct taxes each pay period
- Supports custom pay items such as reimbursements
- Files and pays federal, state, and local employer taxes on your behalf
- Prepares year-end forms, such as Schedule H and W-2s
- Tracks PTO and sick leave alongside each pay run
- Stores pay stubs and tax documents so you can access them anytime
- Access to workers’ compensation and health plans through Poppins Payroll’s partner brokers
Poppins Payroll has an online dashboard where you can make pay changes and check calculations. Source: Poppins Payroll
SurePayroll: Best for simple, automated nanny pay runs
Pros
- Unlimited and automatic pay runs
- Free two-day direct deposits
- Access to health, workers’ compensation, and health plans
- Offers pre-employee screening and background check options
Cons
- Doesn’t set up EIN or state tax accounts for new household employers
- Lacks dedicated payroll support
Why I recommend SurePayroll
SurePayroll is a strong choice if you want payroll to run on its own once everything is set up. You can schedule pay runs, and the system will calculate wages, withhold taxes, and process payments without requiring you to step in each time. That makes it a practical option for families paying a nanny on a consistent schedule.
It also handles tax filings and provides a signature-ready Schedule H for year-end reporting. I like that it includes unlimited pay runs, which gives families more room to adjust payroll if hours change from week to week.
Compared with Savvy Nanny Payroll or Nest Payroll, SurePayroll is a better fit if your main priority is automated payroll on a recurring schedule, though it does require more setup on the front end. If you want something more guided from the start, Poppins is easier to get up and running.
- $39 monthly for one household employee
- $10 monthly for each additional employee
- Runs payroll automatically on your chosen schedule
- Follows a simple three-step pay run process
- Calculates wages and withholds the correct taxes each pay period
- Files payroll taxes for household employers
- Provides a signature-ready Schedule H for year-end filing
- Pays your nanny by two-day direct deposit
SurePayroll’s help center will help you with popular topics like running payroll and company taxes. (Source: SurePayroll)
Savvy Nanny Payroll: Best budget-friendly nanny payroll
Pros
- Flat-rate monthly fee
- Handles complex multi-state taxes
- Offers six-day customer support via phone, chat, and email
Cons
- Other add-on fees aren’t that easy to find
- Annual tax filings cost extra
Why I recommend Savvy Nanny Payroll
Savvy Nanny Payroll makes the most sense for families who want full-service nanny payroll without starting at a higher monthly price. At $39 per month, it covers up to two employees, which gives it a pricing edge over providers that charge more upfront or charge separately for a second household worker.
It covers the tasks that usually create the most work for household employers, including paying a nanny by direct deposit, filing payroll taxes, and preparing year-end forms like the W-2 and Schedule H. It’s also the only provider on my list of the best nanny payroll services that offers customer support on both weekdays and Saturdays.
However, it lacks the dedicated payroll and tax support that HomeWork Solutions offers. While Savvy Nanny Payroll has a flat monthly subscription fee, you have to pay extra for pay runs started via fax or phone call, retrieving data older than two years, and other ad hoc requests.
- $39 monthly for two household employees
- $6 monthly for each additional employee
- Annual base fee of $45 + $5 per employee for year-end filings
Add-ons
- Missing EIN/state tax ID account number: $50
- Entity change: $150
- Adjustments to setup after first payroll is processed: $100
- Direct deposit reversal: $50
- Non-sufficient funds: Starts at $150
- Phone-in/fax payroll: $100
- Re-run payroll: $35
- Corrected W-2s: $35
- Replacement of quarterly/annual reports: $35
- Retrieve data older than two years: $150
- Trace deposits: $50
- Other ad-hoc requests: $75
- Year-end corrections to state/federal forms
- Before February 28: $200 base fee
- After February 28: $300 + $75 per hour
- Guides you through setting up your payroll account and getting your federal EIN online
- Uses Plaid to link your checking account information for staff payments
- Lets you automate payroll or enter hours by email reminder
- Pays and files federal, state, and local taxes for you
- Supports multi-state filings
- Offers support by chat, phone, and email
Savvy Nanny Payroll lets you set up email reminders with a link to its pay run page, where you can input employee work hours and approve payroll. Source: Savvy Nanny Payroll
HomeWork Solutions: Best for payroll and tax support
Pros
- Federal ID and tax account setup services for new household employers
- Flexible plans with options for full-service nanny payroll with tax filings or tax filings only
- Dedicated payroll and tax specialist available in higher plans
Cons
- Charges setup fees
- Year-end tax preparation costs extra
- New client setup takes 5 to 7 days
Why I recommend HomeWork Solutions
HomeWork Solutions is the best option on this list if you want direct help managing payroll and taxes instead of handling everything through software on your own. It assigns a payroll specialist who manages filings, answers questions, and helps you stay on track with your employer responsibilities. That makes a difference if you are not comfortable dealing with tax requirements or want someone to guide you through the process.
It also gives you more than one way to use the service. You can choose its Essential Tax tier if you only need help with tax withholding, filings, and year-end forms, but plan to pay your nanny yourself. If you want more support, its higher-tier plans add direct deposits, time tracking, and tax notice management, including a dedicated payroll specialist and tax coordinator.
However, HomeWork Solutions is one of the more expensive services in this guide once you factor in the enrollment fee, year-end fee, and additional employee charges. If you want a simpler flat-rate option, Poppins Payroll is easier to budget for. If your main goal is to set payroll to run automatically on a schedule, SurePayroll is the better fit.
Plans*
*All plans cover only one household employee
Add-ons
- Additional employee: $69 per employee quarterly
- Tax account setup: $120 enrollment fee
- Year-end summary, Schedule H, and W-2 forms: $125 per employee
- Help with back taxes: Call for a quote
- Sets up your EIN, state tax accounts, and new hire reporting
- Files and pays payroll taxes and prepares W-2s and Schedule H
- Offers both tax-only and full-service payroll plans
- Includes direct deposit or checks mailed to employees on Complete and Premier plans
- Provides dedicated payroll specialist and tax coordinator help (available in higher tiers)
HomeWork Solutions has an extensive knowledge center with online guides, FAQs, podcasts, and downloadable documents. Source: HomeWork Solutions
Nest Payroll: Best for managing nanny back taxes
Pros
- No setup fee for standard payroll service
- Offers a 14-day free trial
- Fast setup process; Nest Payroll claims that it only takes 5 minutes
Cons
- Adding employees (up to six) requires upgrading to higher tiers
- Payments are via banking apps, electronic payment gateways, or checks you prepare yourself
Why I recommend Nest Payroll
Nest Payroll stands out when the challenge is not just running payroll going forward, but fixing what already happened. If you have been paying a nanny off the books or missed tax filings in prior quarters, Nest offers a built-in catch-up service for those situations. Unlike the other providers in this guide, it lets you start that process directly from the platform, enter the details for prior wages, review the tax amounts due, and authorize the work from there.
It keeps nanny payroll simple, and offers an affordable starter plan that includes new household employer tax registrations, quarterly filings, W-2s, and a signature-ready Schedule H. I also like that it has a 14-day free trial, which not every nanny payroll provider does.
Nest Payroll is not the best fit if you want traditional direct deposit payments. It lets you pay employees via banking apps, Venmo, and the Square Cash App, or you can write your own check. If you want a more standard payroll payment option, Poppins Payroll or SurePayroll may be easier to work with.
Plans
*All plans cover only one household employee
Add-ons
- Catch-up service for previous wages (at least three months): $42 per month
- Year-end catch-up tax work: $149 for each catch-up tax year
- Schedule H and W-2 fee when cancelling the Nest Payroll plan: $149 at the time of cancellation
- Sets up household payroll in about five minutes
- Registers your EIN and state tax accounts
- Instant pay calculations with sick and PTO tracking
- Files and pays payroll taxes automatically
- Prepares W-2s, W-3, and Schedule H
- Set up reminders for weekly pay runs
- Integrated Venmo and Square Cash App payments
- Easy-to-use catch-up service for processing nanny back taxes
With Nest Payroll, you can process nanny pay runs from laptops, desktop computers, and mobile devices. Source: Nest Payroll
Looking for something else? Find more payroll software in our best payroll services guide. If you need help in selecting a payroll service, check out these expert tips on how to find the right payroll solutions.
How to choose the best nanny payroll service
The best nanny payroll service is the one that matches how much help you need. Some families want a provider that handles everything from tax setup to filings. Others just want an easier way to pay their nanny and keep records straight. When comparing options, I’d focus on these five things:
- Pricing and extra fees: Start with the full cost, not just the base monthly price. Some providers charge extra for additional employees, year-end forms, and setup help. A service that looks cheaper at first can end up costing more once those fees are added in.
- Tax filing support: This is where nanny payroll services earn their keep. Check whether the provider files federal and state taxes for you, prepares year-end forms like the W-2 and Schedule H, and helps with employer tax registration. If you live in an area with local payroll taxes, make sure that is covered, too.
- Payment options: Choose a service that fits how you want to handle household employee payments. Some providers offer direct deposit, others use electronic payment gateways, while a few can prepare paychecks and mail them to employees. Choose a service that fits how you want to handle household payments.
- Level of support: Some families look for a simple nanny payroll software they can use on their own. Others want a payroll specialist they can contact when questions come up. If you are hiring a nanny for the first time or dealing with back taxes, stronger support can be worth paying more for.
- Household-employer fit: Not every payroll tool is built with household employers in mind. I’d look for a provider that clearly supports nanny payroll, understands household tax rules, and offers features that matter, like pay stubs, PTO tracking, and easy access to tax documents.
Methodology: How I evaluated the best nanny payroll service
To find the best nanny payroll service, I used a scoring rubric with 28 data points to evaluate and compare these seven providers:
- HomePay
- Savvy Nanny Payroll
- SurePayroll
- HomeWork Solutions
- Poppins Payroll
- Nest Payroll
- NannyPay
I focused on the features that household employers and families are most likely looking for, such as affordable pricing, payroll tax payment and filing support, tax account setup, customer assistance options, and tools to streamline nanny pay runs. I also added my expert score to each criterion based on the overall usefulness and effectiveness of the functionalities offered.
While I wasn’t able to test every product directly, I watched product demos and video tutorials when available. I also checked online user reviews for insight into each system’s ease of use and the provider’s overall nanny payroll service.
Below is my full evaluation criteria:
- Nanny payroll features 45%: For this criterion, I evaluated how well each provider handles nanny pay processing and household employer tax compliance. Providers scored higher when they offered full-service payroll with automated tax handling and minimal manual work. I also looked for additional tools to help with pay processing, like time tracking and PTO management.
- Pricing 25%: In this criterion, I looked for transparent pricing, free trials or discounts, unlimited payroll runs, and overall value for money. I also gave higher points to providers that cost no more than $50 per month to run payroll for 3 household employees.
- Platform/interface 20%: This looks at how easy it is for household employers to set up payroll, complete routine tasks, and access payroll and tax information. I also considered the overall system experience, whether the provider uses a self-service platform, client portal, or guided service model.
- Customer support 10%: Here, I considered the quality, availability, and expertise of customer support provided to household employers. I checked how effectively users can get help with payroll setup and tax or compliance issues, especially when dealing with government requirements or time-sensitive concerns.
Nanny payroll frequently asked questions (FAQs)
Once you hire a household employee, you may need to withhold taxes, pay employer taxes, file year-end forms, and follow federal and state labor rules. A nanny payroll service helps you handle those requirements without having to manage the calculations, filings, and paperwork on your own.
No. In most cases, a nanny is considered a household employee because you control their schedule, duties, and work setting. That means you are generally responsible for withholding and paying certain taxes and, depending on your state, carrying workers’ compensation insurance.
In addition to paying your nannies legally, registering as a household employer grants them access to benefits like unemployment insurance. You may also qualify for tax breaks such as the Child and Dependent Care Tax Credit.
You need a federal employer identification number, or EIN, from the IRS. You may also need state and local tax account numbers, depending on where you live. Most payroll providers will ask for your name, address, contact details, and your nanny’s personal information, tax details, and work eligibility documents to complete the setup.
No. Household employees cannot be paid through your business payroll unless they are actually working for the business. Nanny payroll has to be handled separately because household employment taxes and reporting rules are different from business payroll rules.
Yes, you may still need nanny payroll help even if you employ just one nanny. Tax and filing requirements are based on the type of worker and how much you pay them, not on having multiple employees. Even with one household employee, a payroll service can save time and reduce the risk of missed filings or tax mistakes.
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