4 Key Reasons to Use a Nanny Payroll Service

Oct 7, 2015 | Hiring an Employee, Household Payroll & Taxes, Tax & Wage Laws

key reasons to use a nanny payroll serviceThere is more to paying your household employee than just cutting them a paycheck each week. Taxes need to be paid (by the employer and employee) and insurance coverage may need to be in place, just to start.

The four key reasons to use a nanny payroll service are:

1. Avoiding IRS Fines and Penalties for Non-Compliance

GTM Payroll Services will accurately prepare, submit, and pay your quarterly and annual federal, state, and local taxes on time to keep you in good graces with the IRS and state tax departments.

2. Reducing Your Risk for an Audit or Lawsuit

Nothing can suck up your time and resources more than an IRS audit of your finances because you haven’t paid your nanny properly. Unless it’s getting sued by a disgruntled employee.

3. Taking Advantage of Tax Breaks

You can get some of your money back in tax breaks. Specifically, the Dependent Care Assistance Program (DCAP) and the Child and Dependent Care Tax Credit can potentially cut hundreds of dollars off your tax responsibility.

4. Working with Happier Employees

By paying taxes and being compliant your employees receive a number of benefits. They now have an employment history and verifiable income, which can help when applying for loans or credit. They may be eligible for unemployment, disability, workers’ compensation social security, and Medicare benefits.

It can be difficult even for the most organized household employer to keep track of changes to tax and insurance laws and regulations that vary by state, and even by town or city. Ignoring the law and paying your nanny “under the table” will mean even bigger headaches down the road.

This is where GTM Payroll Services comes in and will help make sure you’re compliant, giving you peace of mind and freeing up your time to do things in life you enjoy. We’ll take care of:

  • Paycheck distribution via direct deposit or live check
  • Electronic tax filings (or signature-ready returns)
  • Year-end tax filings including Schedule H, W-2, and W-3.
  • Compliance with federal and state tax, labor and wage laws

Contact us today at (800) 929-9213 to see how we make household employment simple, easy, and affordable, or just get a free payroll quote now!

Free Consultation

On your household

Learn More



Free Consultation

On your household

Learn More

Subscribe to our Blog

The weekly Household Employer Digest delivered to your inbox.

Learn more and subscribe.

Get a Free Consultation

Get help from our experts on how to manage your household tax and payroll.

Call Today!

Mon – Fri 8:30 am – 8 pm ET

Pin It on Pinterest

Share This