Senior Care Payroll & Tax Service
make caring for an elderly loved one simpler, safer and fully compliant
Focus on their Care. We'll Handle Senior Care Payroll, Taxes, and Compliance.
They took care of you – now you want to take care of them. Hiring the right caregiver for a spouse or elderly parent means that your loved one can continue to live at home, in an active, safe, and supported environment.
GTM’s senior care payroll service leverages our professional expertise in household payroll processing, tax compliance, and insurance offerings, and is complemented by ongoing, unparalleled client service and support.
With GTM’s all-in-one senior care payroll and tax service, you will simplify the complexities of managing a senior caregiver, even if family may not live close to their senior, and enjoy:
- A positive working environment for your senior caregiver
- Free direct deposit, so payday is safe and easy for your elderly loved one and their caregiver
- Peace of mind for you and your senior, knowing your senior care needs are in trusted hands
- A complimentary risk assessment to review any gaps in workplace insurance coverage when employing a senior caregiver in the home
- Personalized service, guidance, and knowledge when navigating the complexities of senior care tax savings and cost reductions
Features and Benefits of GTM’s Senior Care Payroll Service
Our full-service solution for all your nanny payroll needs, includes:
Comprehensive Payroll Processing
Automated payroll processing with free direct deposit for hassle-free paydays.
Guaranteed On-time Tax Filings
Quarterly, annual, state and federal taxes filed on time, every time.*
Tax, Wage, and Labor Law Compliance
Expert guidance to stay legal, avoid fines and penalties, and protect your family and employees.
Automated Tax Withholdings
Tax withholdings are automatically calculated for you
Expert Client Support
You’re backed by an experienced team of certified payroll professionals, tax experts, licensed insurance brokers, and certified HR advisors.
Digital Timesheets
Employees punch in and out on their mobile devices to create timesheets that flow seamlessly into payroll.
* 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.
Questions? Get Help with Household Payroll
A household payroll expert can answer questions you have about your own situation.
Call or chat with us during business hours, or schedule a free consultation at your convenience.
Call Toll Free: 800-929-9213
Hours: Mon-Fri 8:30 am - 8pm, ET
Why GTM?
One-stop Shop
GTM handles all your payroll, tax, workers’ compensation insurance, and employee benefit needs under one roof.
Team of Experts
Your account is backed by a team of certified payroll and HR professionals, licensed insurance brokers, and household employment tax experts.
Ecstatic Clients
With the best reviews in the business, clients love the services and support from a firm that has served tens of thousands of families.
Data Security
GTM adheres to the highest data security standards to ensure your information remains confidential.
Understanding Senior Care Payroll
If you hired a part- or full-time senior caregiver independently or through a placement agency, you are considered a household employer and will likely need to pay senior care payroll taxes.
Common senior care roles include:
- Elder care companion
- Home assistant
- Adult day care provider
- Home health aide
- Combination roles, such as a housekeeper/home health aide.
While the care recipient is often a senior parent, the employer can be an adult child who arranges and pays for care.
The employer may also be eligible for tax credits or deductions such as the Child and Dependent Care Tax Credit, a Dependent Care FSA, a Health Care FSA, and/or medical expense deductions.
To take advantage of these tax savings, the caregiver needs to be paid legally and you may need to provide payroll information and caregiver activity logs.
Our experts will manage the compliance rules and regulations that come with every home-based care situation and handle your senior care payroll and taxes.
Senior care employment taxes, commonly referred to as “nanny taxes,” are the taxes an employer (either the senior or another family member) must pay when employing a senior caregiver.
A household employer will owe Social Security and Medicare taxes (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 senior caregiver does not owe their entire tax obligations when they file their personal tax return.
Using a Senior Care Payroll Service
The IRS estimates that it will take at least 60 hours each year to manage your senior care payroll and tax obligations. Your time is better spent doing something – anything else – than figuring out senior care taxes. Get senior care 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 senior care payroll and taxes to the household employment experts.
With GTM’s senior care payroll service, payroll and tax professionals will manage the wage, tax, insurance, and labor rules associated with every senior care situation.
More Than Just a Senior Care Payroll Service
Our full-service solution for all your payroll needs, includes:
Timekeeping Solution
Integrate a completely automated, easy-to-use timekeeping solution into your payroll service to track your nanny’s hours, overtime, time-off requests, and accrual balances.
Workers’ Compensation
Failing to have the required coverage can result in fines of tens of thousands of dollars. Our insurance agency will obtain a policy for you and manage any audits and invoices.
Employee Management
A PHR-certified human resources advisor can review and guide you on employment best practices, job descriptions, offer letters, handbooks, work agreements, and more.**
** Additional fees apply
Reviews from Real Clients of our Nanny Payroll and Tax Services
Frequently Asked Questions
Explore answers to the most common questions household employers have about managing their responsibilities effectively.
Does the nanny tax apply to senior care?
Answer – The nanny tax refers to the employment taxes paid when a family or individual hires someone to work in their home. Often, this is a nanny who looks after children, which gives “nanny taxes” its name. Household employment subject to nanny taxes also includes privately hired, in-home senior care workers. Senior caregivers and their employers pay Social Security and Medicare taxes on the workers’ wages. Employees also pay federal and state income taxes (if applicable). Employers pay federal and state unemployment taxes. Essentially, for tax purposes, senior caregivers are treated the same as traditional employees
As a household employer, do I have to pay taxes on my employee?
Answer – Yes. As a household employer, you must withhold Social Security and Medicare taxes if you pay cash wages of $2,800 or more in 2025 (or $2,700 in 2024) to your employee. Employers are not required to withhold federal and state income taxes unless both parties agree upon it. If income taxes are not withheld throughout the year, your senior caregiver will be responsible for paying them at the end of the year. If you pay a total of $1,000 or more per quarter to a household employee, you must pay federal unemployment tax. This does not apply if your household employee is your spouse, child under age 21, parent, or any employee under 18 at any time in the current tax year.
How much will I owe in senior care taxes?
You are responsible for paying 7.65 percent of your employee’s gross pay in Social Security and Medicare taxes, which you can remit quarterly. Your employee will be responsible for the same amount, which is required to be withheld from their pay each pay period. Each of you will pay 6.2 percent towards Social Security and 1.45 percent to Medicare. Your employee will also owe income tax.
You will also pay FUTA (federal unemployment tax), which is six percent of wages up to $7,000 in earnings as well as state unemployment taxes, which vary by state. Your employee is not responsible for unemployment taxes.
Can I file senior care taxes on my own?
Answer – The IRS estimates that it takes a household employer 60 hours each year to comply with all federal and state tax laws. It can get complicated and time-consuming. You’ll need to adhere to all applicable federal and state tax, labor, and wage laws like the Fair Labor Standards Act, paid sick and family leave programs, and domestic worker protection laws. Some household employers rely on their accountant or a firm like GTM Payroll Services to handle payroll processing and tax filings.
Before handling senior care taxes and payroll on your own, we suggest you visit The Complete Guide to Household Payroll. This guide will help you every step of the way and explain what you need to do and why. There’s even a handy checklist and payroll calendar at the end of the guide to use as references.
However you proceed, it’s important to do it the right way. There can be steep financial consequences if you fail to properly pay your senior care taxes.
What are the risks of non-compliance?
Answer – Not paying senior care taxes could result in hefty fines and penalties, and possible legal action by your employee. It’s not that difficult to get caught. Your senior caregiver files for unemployment, gets hurt on the job, or sues you for not paying at minimum wage or overtime. Paying your senior caregiver “under the table” and getting caught could also trigger an IRS audit. Not paying proper taxes can also derail career opportunities and not just for government positions. For jobs that require a government security clearance, you’ll be asked if you failed to pay any taxes when required by law.
Can I treat my senior caregiver as an independent contractor?
Answer – No. There are specific differences between an employee and an independent contractor. An employee is a person who takes instruction from the employer, has a schedule set by the employer, and uses tools and equipment provided by the employer. An independent contractor is a person who works under their own conditions, sets their own schedule, and uses their own supplies. Senior caregivers who work in an employer’s home, whether it be on a temporary or full-time basis, are considered household employees, not independent contractors because they work under the family’s control and have their schedule and pay set by the family. In the past, the IRS has made determinations that caregivers are considered employees and it is illegal for a family to treat them as independent contractors.
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