Choosing a Nanny Tax and Payroll Provider: 7 Questions to Ask
1. Do you offer workers’ compensation insurance for household employers?
Worker’s compensation is a requirement for household employers in many states. GTM Payroll Services is a licensed broker for workers’ compensation insurance. We’ll work on your behalf to shop for quotes from various carriers to provide you with the most competitive and pre-qualified options.
With your workers’ compensation and payroll through a single nanny tax and payroll provider, you have one point of contact and access for all your payroll, taxes, and insurance needs.
Other nanny tax and payroll providers don’t offer workers’ compensation leaving you to find a policy on your own. That’s another account to remember with additional contact information.
2. Do I need to process my household payroll each week?
With GTM Payroll Services, you can set your payroll to “autopilot.” Enter your nanny’s weekly hours and pay rate once and then forget it. They will automatically receive their check or direct deposit each pay period. It’s perfect for active families … one LESS thing to worry about each week.
It’s also easy to make any adjustments if your nanny works more or fewer hours than their standard in a pay period. Changes can be made online at your convenience.
Some nanny tax and payroll providers force you to be your own payroll processor. Each pay period you need to go online, log into your account, enter your nanny’s hours, review it to make sure everything is correct and then approve it. That’s every pay period. If you forget to do it, your nanny doesn’t get paid. If you make a mistake, your nanny is paid incorrectly. That’s one MORE thing for you to worry about each week.
3. Will you obtain my Employer Identification Number (EIN) and state ID?
The federal government requires that all household employers obtain an EIN. You’ll have additional forms to file to get your state ID as well. The process is a nuisance and can confuse families hiring household help for the first time. Doing it incorrectly can mean big headaches for you come tax time.
Some nanny tax and payroll providers won’t help with tax ID paperwork and then will impose fees if your tax accounts are not set up properly.
GTM Payroll Services takes care of EINs and state IDs for you. We will file all proper federal and state forms on your behalf to make sure you are properly set up as a household employer. That is one less item on your to-do list and a benefit of partnering with a full-service nanny tax and payroll provider.
4. How quickly can I get set up with your service?
With GTM Payroll Services, you can get set up online or call us and we can walk you through the process in about 10 minutes. From there it can take as little as three days for your employee to receive their first pay. Our online, self-onboarding process walks your new hire seamlessly through the employee setup process. Everything is fast, efficient, and highly automated. Exactly what busy families need.
On the other hand, it can take an hour or more to navigate the systems of other nanny tax and payroll providers. These systems are designed for business – not household – payroll. They are unnecessarily complex. On top of that, they’re still mailing packets of information that can take days to reach you. Then you need to find the time to complete them and send the package of paperwork back. It can take a week or more to be ready. That’s NOT what busy families need.
5. Does your company specialize in household payroll?
Some nanny tax and payroll providers are simply subsidiaries of larger business payroll corporations. They try to shoehorn household employers into their small business offerings. And it shows. Their sign-up processes and payroll platforms are designed for businesses and not families.
Household payroll, tax withholding, and insurance requirements are very different from those of a business. If you do it incorrectly, you are the one facing audits, lawsuits, and fines.
More than 30 years ago, GTM Payroll Services became the first firm ever to manage household payroll. Since then, we have helped tens of thousands of families – including executives and clients of Fortune 500 companies.
You lead active lives and may not get all the ins and outs of payroll, taxes, and insurance. That’s why we will advise you on workers’ compensation and overtime hours. Help you understand domestic workers’ bills of rights. And much more.
Your dedicated support team at GTM Payroll Services includes certified payroll professionals (CPPs), household employment experts, licensed insurance brokers, CPAs, and household employment tax specialists. We will help keep you legal and compliant. That means no risks, no hassles, and no worries.
6. How secure is my data with your service?
Some nanny tax and payroll providers offer basic SSL encryption of your data. But that’s not enough to prevent hackers from accessing your information – including social security numbers – and stealing your or your nanny’s identity.
At GTM Payroll Services, we go above and beyond basic. We maintain strict compliance with SOC 1,* the highest international standards for information security. We also include backup protection to keep your information safe.
It’s one less concern for you and part of the service and support you’ll enjoy with GTM Payroll Services.
* Developed by the American Institute of Certified Public Accountants (AICPA), a SOC 1 audit is conducted by a third-party auditor to validate that a service organization’s key internal compliance and information security controls are operating effectively. It is considered the industry standard for evaluating, testing, and reporting on these controls and shows a firm’s commitment to client information security.
7. What type of resources do you provide to support household employers?
GTM Payroll Services literally wrote the book on household employment. How to Hire a Nanny: Your Complete Guide to Finding, Hiring, and Retaining Household Help by GTM Founder and CEO Guy Maddalone provides guidance on nanny taxes and payroll as well as dozens of other related topics. It is free for families that sign up with GTM Payroll Services.
Get practical tips and information on finding a nanny, employee benefits, health and safety, insurance, personnel practices, and much more.
On top of that, we will keep you up to date on any changes to wage, tax, and insurance laws and regulations so you stay legal and compliant.
Our e-newsletters, website, and blog are filled with a wealth of knowledge about household employment that only the experts at GTM Payroll Services can provide.
At other nanny tax and payroll providers, where household employment is just another industry for their business payroll service, you won’t find much – if anything – in the way of resources.
Simply, no other nanny tax and payroll provider can match the depth and breadth of resources that GTM Payroll Services offers.