Should an Accountant Do My Nanny Taxes? 6 Reasons Why This May Not Be a Good Idea

Feb 14, 2019 | Household Payroll & Taxes, Tax & Wage Laws

It may make sense to just hand over your nanny tax and payroll responsibilities to your accountant and let them manage it all. However, there are some considerations before going this route. A payroll service may wind up being a better choice.

You have an accountant. You have nanny tax and payroll obligations. It may make sense to just hand over your tax and payroll responsibilities to your accountant and let them manage it all. They’re the expert, right?

Yes, your accountant is probably very good at what they do. But there are some considerations before going this route.

How well-versed is your accountant in the nuances of nanny taxes? Can they manage your other responsibilities as a household employer? Do they even want to do nanny payroll and taxes?

We’ll break down six reasons why you may want to consider a payroll service rather than your accountant to handle your nanny tax and payroll obligations.

1. Accountants have better uses for their time

We partner with hundreds of accountants and meet many more at conferences and trade shows around the country. If there’s one thing we’ve learned, while they love their jobs, they do not have the same affection for nanny taxes and payroll. It’s a hassle for them and some have even told us they want nothing to do with payroll of any kind. And that’s fine. Managing nanny taxes and processing payroll takes them away from more profitable work they can be doing for their firm.

At GTM Payroll Services, nanny taxes and payroll is what we’ve been doing for more than 25 years. We take on the administrative hassles of being compliant with tax, wage, and labor laws so you – or your accountant – have more time for the things you’d rather be doing.

2. Accountants may not know all there is about nanny taxes

Many accountants only have one or two clients that need nanny tax help so they may not have the experience in dealing with unique situations. Also, the nuances of nanny taxes and payroll can trip up even the most tax-savvy accountants and cause non-compliance issues for their clients.

GTM has helped thousands of families over the years. We’ve managed it all for our clients from nannies to senior caregivers, part-time employees to household staffs, live-in employees to seasonal workers, and more. We stay up-to-date on all of the laws that may impact your compliance. Minimum wage rates increase. Paid family leave and sick time regulations get passed. Domestic Workers’ Bills of Rights take effect. If anything changes, we’ll let you know and then take care of any adjustments so household payroll and taxes are not a worry for you. Even unintentional missteps with tax, wage, and labor laws can lead to significant fines and penalties.

3. Accountants may not handle everything

Your accountant may take on your nanny taxes and possibly your household payroll. But there’s much more to being a household employer than payroll and taxes. Will they set you up as an employer with federal and state agencies? Will they obtain your workers’ compensation insurance? Will they handle all required withholdings from your employee’s pay and not just taxes? What happens if you want to offer your employee benefits like health insurance or a retirement plan?

With GTM, it’s one call for all. We’ll manage everything from filing all the paperwork for your employer identification numbers, processing payroll, handling taxes and other withholdings, and obtaining required insurance coverage. Plus we offer health insurance options and a retirement plan for your employee that we can tie into your payroll.

4. Accountants know taxes but do they understand household employment

Getting taxes and payroll right is important but it’s just one aspect of having someone work in your home. Even if your accountant agrees to manage your nanny taxes and payroll, how knowledgeable are they about household employment? What if you’re setting up a nanny share? Should your nanny drive your car or use their own? Do your senior caregiver’s duties qualify as companionship care? How do you legally hire a non-citizen? How do you set up guaranteed hours?

GTM has a team of household employment experts ready to serve you and answer all your questions. Our online resource center is filled with guides and best practices on hiring, retaining your best employees, and more.

5. Accountants trust us

Hundreds of accountants trust us to manage their clients’ nanny taxes, household payroll, and compliance with tax, wage, and labor laws. They know we’ll provide their clients with the same level of exceptional service and attention to detail that they already enjoy with their firm. Also, you’ll be backed by our guarantee that your nanny taxes will be filed on time, every time. If you receive a notice from the IRS, or any other tax agency, based on a filing that we made, we’ll work with the agency on your behalf to resolve the issue. If we’re at fault, we’ll pay all the associated fines and penalties.

6. Making payroll changes through your accountant can be a hassle

Every time you need to make a payroll adjustment – for example, an employee works more or fewer hours in a week than usual – you’ll need to call your accountant and hope they get the change right.

With GTM, you can make changes through your secure, online client portal. You can perform any number of tasks with a few taps or clicks. Don’t have any changes? Then your standard payroll will process automatically without you having to do a thing. Our team is also available by phone, email, and web chat to help with any task and answer any question. You can also give your accountant online access to your account to view and download forms.

Get Started

Interested in having GTM manage your household taxes and payroll? Call (800) 929-9213 for a free, no-obligation consultation with a household employment expert. Or, if you’re an accountant who would like to refer your clients to GTM, call (800) 929-9213 and we’ll show you the value of a partner you can trust.