Have any of you used a nanny payroll company? Did you like them? How much did it cost a month? Did they do all of the tax paperwork and payroll for you?
We are trying to figure out if having a nanny is financially feasible, especially since she wants to have taxes deducted, etc. Neither of us are accountant-minded so we would want a pro to help us out.
grapefruit / 4649 posts
I was paid through GTM (which was the ad on the page) and never had any issues and the parents seemed happy with it. Other people have used local payroll services which worked fine but people are more likely to try weird setups like 1099s which aren't the right way. No matter who you use though they should all be willing to chat with you and help you to know if they would be a good fit.
You have to create a login but it is free to use this calculator which might be helpful: http://www.nannynetwork.com/NannyTax/
I am not at all familiar with it but I believe quick books has an option to process payroll.
It might be worth mentioning in your ad for a nanny (if you haven't found one) that you are planning to go that route, for me it would have been a big draw and it will help you to not have to weed through three people who want to work under the table.
Good luck!
pomelo / 5178 posts
We used Intuit's online household employee software. I thinkg it cost around $25/month and it was very easy to use. We were in CA at the time, which has a bunch of extra state employment taxes to pay, and we thought it was very user friendly.
Eta: it generates all the tax paperwork for you and it has automatic withdrawals/deposits so you don't actually have to write any checks if you don't want to (both for the nanny or for the taxes).
GOLD / cantaloupe / 6703 posts
@Cole: We have a friend who may be our long term nanny. We are trying it for 6 weeks first, and if we decide to continue she wants to do it taxed. I saw that calculator...it's expensive!
@Honeybee: Good to know. I haven't used Intuit before.
blogger / wonderful cherry / 21616 posts
When I was a nanny they used breed love which we both likes. She said there was a fee that was charged every quarter or half year or something. They handled payroll completely!
grapefruit / 4649 posts
@MaisyMay: The calculator is or paying nanny taxes? I thought the calculator was free but taxes are certainly not cheap! If you have an accountant or even good googling skills you should be able to figure out what the tax benefits for you are. Some companies offer the equivalent of a HSA for childcare I believe and I know there are some tax breaks but they certainly won't cover it all.
GOLD / cantaloupe / 6703 posts
@Cole: The taxes 
The tax benefit is a $600 credit. That's about all I see. The penalty for getting caught paying under the table is up to $25,000. Yikes.
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