HomePay Payroll Review 2021

HomePay is on the pricier end of nanny payroll services, but the company comes with decades of nanny-specific payroll experience and an easy-to-reach customer service team.
Most Established
Homepay
3 out of 5 stars
3.0
  • Check
    Decades of nanny payroll experience
  • Check
    Online account access through myHomePay.com
  • Check
    Workers compensation insurance options
  • X
    Much pricier than the competition

Worried about calculating, deducting, and paying your new nanny’s payroll taxes? HomePay’s nanny payroll service can tackle it for you. While HomePay isn’t the best-known name in the world of nanny payroll software, the company offers basic payroll features and decades of nanny tax experience. These features don’t necessarily outweigh the company’s high pricing, but if you’re looking for experienced nanny payroll help and don’t care as much about cost, HomePay could be a good fit.

HomePay pricing 2021
Monthly fee
Year-end tax filing fee
Features
Learn more

$75.00/mo. (billed quarterly)

$100 (includes Schedule H, Form 1040, Form W-2, and Form W-3) Federal and state tax calculations, direct deposit payments, employee onboarding

Data effective 11/24/20. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

What is HomePay?

HomePay started out as Breedlove & Associates, a payroll tax service geared toward household employers, specifically parents hiring nannies. In 2012, the original owners of Breedlove & Associates sold their business to Care.com, a company that helps families find at-home care. Now, HomePay is billed as HomePay Provided by BreedLove or as Care.com HomePay.

Whether you know it as Breedlove payroll, HomePay payroll, or Care.com’s nanny payroll service, HomePay delivers the same service: removing nanny taxes (or any household employee’s taxes) from your plate.

HomePay payroll features

If you use HomePay, you won’t touch your employees’ paychecks apart from setting their wages and reviewing HomePay’s summary pay period emails. Instead, HomePay will take the payroll wheel by providing these key services:

  • State and federal payroll tax calculations
  • Year-end tax document processing (includes forms W-2 and W-3 plus Schedule H for form 1040 and state annual reconciliation)
  • Easily accessible archived tax returns
  • Easy paycheck direct deposit on employee paydays
Best Small Business Payroll Software
Gusto
Best overall
4 out of 5 stars
4.0
Paychex
Best for growth
4 out of 5 stars
4.0
OnPay
Best for new employers
4 out of 5 stars
4.0
ADP
Best Payroll + HR packages
3.5 out of 5 stars
3.5
SurePayroll
Best customer service
3.4 out of 5 stars
3.4
Learn more about our top brands.

Before you pay your employee (whether that’s weekly, monthly, or daily), HomePay sends you an email detailing your employee’s wage and the amount withheld in payroll taxes. Then HomePay makes the payment through direct deposit, or the team can create a paper check. Your employees will get their own email with an electronic pay stub for their personal records. HomePay will also mail out your employees’ W-2 forms at the end of the year.

Money
Price check: HomePay's total annual cost

HomePay charges $75 a month, but bills you quarterly. In other words, you’ll pay $225 per quarter for HomePay, or $900 for the full year. If you add HomePay’s $100 end-of-year tax filing services, you’re looking at a yearly total of $1,000.

HomePay also makes itself the go-between for any communication between you and the IRS. You won’t have to struggle through an audit on your own or try to keep up with changing tax codes and requirements; HomePay does it all for you.

Tired of payroll? Gusto handles payroll taxes and more

With unlimited payroll runs and automatic tax filing, Gusto helps small-business owners worry less about payroll and put more time into growing their business.

  • Get automatic payroll tax filing, including end-of-year tax forms
  • Manage workers compensation insurance
  • Track paid time off, sick leave, and holiday pay

HomePay pros and cons

Strengths
Pro Bullet Decades of nanny payroll experience
Pro Bullet Easy online account management
Pro Bullet Workers compensation add-ons
Weaknesses
Con Bullet Higher pricing than most competitors
Con Bullet Limited customer service hours

HomePay pros

HomePay has been in business since the early 1990s, and its US-based customer service team ditches the phone-tree trap and responds to phone calls quickly. If you want to manage payroll outside of HomePay’s hours, you can check out your myHomePay.com account to access archived tax filing reports, see your employee’s info, and verify any tax withholding amounts.

If you need more services than just payroll tax deductions, HomePay has a few additional offerings. In particular, the company can pair you with a workers compensation insurance broker who helps you craft the right insurance plan for your unique household.

HomePay cons

Let’s start with the most obvious downside: HomePay’s high cost. Most HomePay customers will pay $900 to $1,000 a year for payroll services. In comparison, SurePayroll, our favorite nanny payroll provider, costs around $240 a year for similar services.

And while we like HomePay’s customer service expertise, we don’t like their limited contact options and hours. You can’t chat online with a HomePay customer service representative, and the customer service team is only available 8 a.m. to 6 p.m. central time Monday through Thursday and 8 a.m. to 5 p.m. central time on Fridays. If you need help from HomePay on a holiday, on a weekend, or after regular business hours, you’re out of luck.

Nanny payroll FAQ

Am I a household employer?

You could be a household employer if you meet the following criteria:

  • You hired a nanny, babysitter, maid, nurse, caretaker, cook, or another person who works out of your home, and you pay this person more than $2,200 a year. (In contrast, a babysitter who works out of their own home is self-employed.)
  • You direct the employee’s work, including what they do and how they do it. (For instance, your house cleaners don’t choose what to clean on their own; you tell them what and where to clean.)
  • You provide the supplies, materials, or tools the employee needs to do their job at your home.

It doesn’t matter if your nanny or babysitter works part time or full time, if you hired them through an agency or through an ad in the paper, or if you pay them by the hour, week, or month. They’re considered your employee regardless, as long as you pay them more than $2,200 a year—which means you’re responsible for deducting their payroll taxes and filing tax forms at the end of the year.

However, you aren’t a household employer if you hire a contractor to repair your roof, a landscaping company to take care of your lawn, or a daycare owner who works out of their own home. If the person you hire has their own company, uses their own tools, and decides how they carry out the work you want them to do, then that person is self-employed and will file their own taxes quarterly or at the end of the year.

What are payroll taxes?

Payroll taxes are the taxes you’re required to withhold from your employee’s paychecks and remit to the federal government. Typically, you only need to withhold Social Security taxes and Medicare taxes (collectively known as FICA taxes) from your employees’ paychecks. You do not need to withhold federal and state income taxes unless your employee asks you to and you agree.

You’ll also need to match your employee’s contribution to Social Security and Medicare out of your own pocket. Additionally, you’ll pay the federal unemployment tax (also known as FUTA taxes) to contribute to unemployment benefits.

You can learn all about which payroll taxes you need to pay on the IRS’s website.

Do I need to withhold income taxes from my employees’ paychecks?

No. Unlike typical small businesses, household employers aren’t required to withhold federal income taxes from their employees’ paychecks. However, an employee might ask you to withhold their income tax to make tax returns easier at the end of the year. If you agree, you’ll need to fill out and file some additional tax forms.

The takeaway

HomePay Provided by Breedlove’s payroll is a good option for householder employers who aren’t overly concerned about costs. If you just want a nanny payroll service that covers the basics and makes your new life as a small-business owner a little less overwhelming, it’s a solid choice with an easy setup.

Want to see other payroll options? Our review of the year’s best online payroll software for small businesses can help you kick off your search.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Kylie McQuarrie
Written by
Kylie McQuarrie
Kylie McQuarrie has been writing for and about small businesses since 2014. Prior to writing full-time, she worked with a variety of small-business owners (from freelance writers to real-estate solopreneurs), which gave her a front-row look at small-business owners' struggles, frustrations, and successes. Currently, she’s Business.org’s accounting and payroll staff writer. Her work has been featured on SCORE.org, G2, and Fairygodboss, among others.
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