Nanny Payroll & Tax Service

You diligently chose the right nanny for your family, someone who is conscientious, competent, and caring. Choose wisely again – select a nanny payroll service provider who can manage all the administrative tasks associated with being a household employer, like:

• Paying your employee
• Integrating timekeeping into payroll
• Withholding and remitting taxes
• Securing required insurance coverage (such as workers’ compensation, paid family and sick leave, and disability)
• Providing guidance on employee management and compliance with tax, wage, and labor laws.

GTM’s nanny payroll service features our professional expertise in tax compliance, household payroll processing, insurance, human resources, and unparalleled customer support.

Understanding Nanny Taxes

You will likely need to pay nanny taxes if you employ someone to work in your home and they make $2,700 or more in gross wages in 2024 (or $2,600 in 2023). Household employees may include:

• Full- and part-time nannies (live-in and live-out)
• After-school nannies and tutors
• Seasonal and summer nannies
• Learning pod or home education teachers
• Specialty caregivers for children with special needs
• Babysitters with regular hours/schedule

Nanny taxes is the collective term used for the employer taxes a family needs to pay when they have a household employee. A family will owe Social Security and Medicare taxes (commonly called FICA taxes) as well as federal and state unemployment taxes while withholding their employee’s share of FICA taxes. Withholding income taxes is optional but a good idea so your household employee does not owe their entire tax obligation when they file their tax return.

Using a Nanny Payroll Service

The IRS estimates that it will take at least 60 hours each year to manage your nanny payroll and tax obligations. Your time is better spent doing something – anything else – than figuring out nanny taxes. Get nanny payroll wrong – even if your mistakes are unintentional – and you could face significant fines and penalties.

That is why you should leave the hassles and risks of nanny payroll and taxes to the household employment experts.

With GTM’s nanny payroll service, payroll and tax professionals will manage the wage, tax, insurance, and labor rules associated with every childcare situation.

Features and Benefits of GTM’s Nanny Payroll Service

Let us simplify your life with a complete solution for all your nanny payroll needs, including:

• Free direct deposit that makes payday hassle-free for you and your employee
• Tax withholdings automatically calculated for you
• State and federal taxes filed on time, every time – 100% guaranteed *
• Optional year-end tax preparation
• Online, self-onboarding walks your new hire seamlessly through the employee setup process
• Easily make adjustments online at your convenience or contact our client support team by phone, email, or web chat
• Our team of payroll specialists, CPAs, and insurance brokers will help you stay compliant with ever-changing tax, wage, and labor laws so you stay legal, avoid fines, and provide protection for your family and nanny

* OUR GUARANTEE: If you receive a notice from the IRS, or any other tax agency, based on a filing that GTM Payroll Services 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 penalties and fines.

More Than Just a Nanny Payroll Service

GTM Payroll Services is more than a nanny payroll and tax service. We are a “one call for all” household employment needs, including timekeeping, workers’ compensation, workplace insurance, and human resources support.

Timekeeping Solution

HomePunch® is a completely automated, easy-to-use timekeeping solution for tracking your nanny’s hours, overtime, time-off requests, and accrual balances. Fully integrated our payroll and tax service, approved timesheets flow seamlessly into payroll for processing. Streamline your timekeeping, eliminate errors from paper timesheets and manual data entry, and get the accurate record-keeping you need to comply with wage and labor laws.

HomePunch is included with your first year of service ($240 value).

Workplace Insurance

Your state may require a workers’ compensation policy. Not having the proper coverage can result in tens of thousands of dollars in fines. But we have you covered. Our insurance team will obtain a policy for you and manage any audits and invoices.

Hiring a worker for your home brings convenience and efficiency to your family. However, you also take on some risk as a household employer.

As a client, you’ll receive a Household Employer Insurance Risk Review ($250 value). An insurance professional will review your risks to help you avoid costly labor compliance issues and protect your assets. It’s the protection – and peace of mind – you need when employing workers in your home.

Review our Specialty Insurance Program for Household Employers.

Human Resources and Employee Management

GTM clients have access to a PHR-certified human resources advisor for help managing their employees and complying with labor laws.* Even unintentional violations of minimum wage and overtime rules, paid leave requirements, domestic workers’ bill of rights, termination procedures, and more can lead to employee lawsuits and thousands of dollars in back pay, fines, and penalties.

* Additional fees apply

For families that want an extra layer of protection, GTM offers EasyPay® HR Platinum, which combines our comprehensive payroll and tax services with employment best practice guidance and labor law compliance. Clients receive guidance for onboarding new employees, review and advice on HR practices, state-mandated harassment training for employees and supervisors, required labor law posters for the workplace, an audit of benefit offerings, and more.