NannyPay Review 2021

Want help paying nanny taxes without relying on an expensive third party? NannyPay's household employee tax software costs comparatively little while handling all the self-service payroll basics, from pre-filled W-2 forms to automatic payroll tax calculations.
Best DIY software
NannyPay logo
  • Check
    Affordable yearly fee
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    Available as cloud-based or desktop software
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    Steep learning curve
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    No customer support

You thought hiring a nanny would simplify your life—and then you learned about nanny payroll taxes. Fortunately, you don’t have to tackle the nanny tax yourself, and you don’t have to pay an absurd amount for tax help either. Instead, NannyPay’s affordable nanny tax software accurately calculates nanny taxes for you, generates end-of-year tax forms, and prints pay stubs for your employee’s tax records.

Money
Nanny taxes 101

Not sure what the nanny tax entails? Jump down to our nanny tax section for a quick overview.

NannyPay plans and pricing 2021

Plan
Starting price
Software type
Tax features
Software features
Learn more
NannyPay2 Desktop$149.95/yr.DesktopAutomatic payroll tax calculation, taxable payment tracking, W-2 and W-3 form generationUser-configured backups
NannyPay Cloud$149.95/yr.Cloud-basedAutomatic payroll tax calculation, taxable payment tracking, W-2 and W-3 form generationAutomatic daily cloud backups, accessibility from any location and web-enabled device

Data effective 12/3/20. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

NannyPay is best for DIY households on a budget

With both a cloud-based and desktop version, NannyPay is a versatile—and affordable—payroll pick. NannyPay costs just $149.95 a year to pay up to three workers. There aren’t hidden fees or penalties: the price you see is the price you get.

Remember, though, NannyPay is a DIY software solution. While the software helps you calculate taxes and pay your nanny the right amount, it doesn’t do much else. So while NannyPay can print checks for you to sign, you’re in charge of actually handing the check off to your nanny. The same goes for the IRS: NannyPay will calculate the right tax withholding, but you’ll have to do the actual withholding and remitting yourself.

But a DIY payroll plan is pretty much all a household with one nanny—or other household employees, like a home care nurse or gardener—needs. If your top priority is saving money while paying your nanny and the IRS the right amount with each paycheck, NannyPay should suit you just right.

NannyPay's plans, pricing, and features

NannyPay comes in two main flavors: as desktop software called NannyPay2 Desktop, or cloud-based software called NannyPay Cloud. All of NannyPay’s DIY software plans include the same features, regardless of whether you choose the Windows, Mac OSX, or cloud-based version. The plans differ only in how many employees you’re paying—the more workers you employ, the pricier your software, but the features stay the same.

NannyPay's plans and pricing 2021

Plan
1–3 household employees
1–10 household employees
Unlimited household employees
Learn more
NannyPay2 Desktop and NannyPay Cloud$149.95/yr.$199.95/yr.$249.95/yr.

Data effective 12/3/20. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

NannyPay's key features

NannyPay doesn’t automatically file your taxes for you or pay your nanny: you’ll have to take care of both of those tasks yourself. But NannyPay does calculate payroll taxes and take-home paycheck amounts, along with a few additional features:

  • Non-taxable and taxable deduction tracking (including deductions for health insurance plans, retirement plans, or employee reimbursements)
  • Paycheck printing
  • Pay stub printing
  • W-2 and W-3 form printing at the end of the year
  • Signature-ready Schedule H printing to submit with your end-of-year tax forms

NannyPay pros and cons

Pros
Pro Bullet Low yearly starting cost
Pro Bullet Desktop and cloud-based software options
Cons
Con Bullet No automatic tax filing
Con Bullet High learning curve and tricky setup
Con Bullet No customer support

NannyPay pros

We’ve already covered NannyPay’s biggest perk: its low annual cost. The next-cheapest DIY nanny payroll provider, Wave Payroll, charges around $20 a month plus $4 to $6 more per employee. With Wave, you’re looking at $288 a year minimum, which is more than NannyPay’s priciest plan of $249.95 a year to pay an unlimited number of household employees.

NannyPay is also a bit more versatile than other software types, most of which are cloud-based. Like we said earlier, NannyPay offers both a desktop and cloud-based version of its nanny payroll software. Both products cost the same, so their main difference is where your information is stored: either on your computer or a secure off-site server hosted by NannyPay.

Megaphone
Desktop nanny payroll software vs. cloud-based nanny payroll software

Not sure which version of NannyPay to pick? We tend to prefer cloud-based payroll solutions. They update on their own, include automatic backups to a secure server, and are accessible from any web-enabled device. But if you have limited (or expensive) internet access, desktop software will serve you much better than cloud-based software, which requires a solid internet connection. 

Finally, even though NannyPay is so inexpensive, it includes some solid features beyond just payroll tax calculation. In particular, we like that it lets you print your own checks and doesn’t charge extra to print W-2 and W-3 forms—a lot of payroll companies charge for the latter service.

NannyPay cons

NannyPay is cheap, which means it doesn’t have as many features as most paid providers. For instance, NannyPay doesn’t actually pay your nanny or other household employee for you—you can print out the check and pay stub, but there’s no direct deposit option. And NannyPay doesn’t file payroll taxes for you either, just calculates those taxes to make filing easier.

Another feature you won’t get with NannyPay? Solid customer service. You can email NannyPay for tech support or check out its software instructions, but the instructions are confusing (especially since the software interface isn’t very intuitive). In other words, even though NannyPay technically has customer service, you’re largely on your own for setup, and we can’t promise a quick fix if a technical issue comes up.

Speaking of customers, we couldn’t find many NannyPay reviews from verified customers. The company doesn’t have a presence on any of our preferred customer review sites, including Trustpilot and Trustradius, and Consumer Affairs. NannyPay lacks a Better Business Bureau profile too, which doesn’t necessarily mean much (the BBB isn’t all it’s chalked up to be), but we’d be happier if NannyPay showed up on more verified review sites.

Of course, low user numbers don’t automatically indicate a poor product. NannyPay simply doesn’t have the reach of companies like SurePayroll, which offers small-business payroll as well as nanny payroll, or NannyChex, which has been in the nanny payroll game for decades. If you do end up using NannyPay, we hope you’ll consider leaving a review on Trustpilot or Trustradius—you’ll give us and your fellow household employers a better sense of how well NannyPay really works for users.

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

NannyPay FAQ

What is the nanny tax?

The nanny tax is an umbrella term describing the taxes that the IRS requires household employers to deduct directly from their employees' paychecks, namely these:

  • Federal income tax
  • State income tax
  • FICA taxes, or Medicare and Social Security taxes

The nanny tax also includes employers' Medicare and Social Security tax contributions, which must match employee tax contributions. Finally, employers must pay the FUTA tax, or the federal unemployment insurance tax. Employees do not pay FUTA taxes.

To learn more about nanny taxes, check out IRS publication 926.

Does every household employer have to deduct nanny payroll taxes?

You only need to deduct payroll taxes from your nanny's paycheck if you pay a household employee at least $2,200 a year.

What is Schedule H on a tax form?

Schedule H lists all the household employment taxes you were expected to pay throughout the year, which should include the FICA and FUTA tax payments you made. All household employers who pay employees $2,200 or more a year must submit Schedule H along with their typical tax return documents.

How does NannyPay work?

NannyPay is a do-it-yourself nanny payroll service, which means its software helps you calculate your payroll taxes based on your nanny’s pay rate. (Pro tip: software that helps you calculate taxes but doesn’t file them for you is also known as self-service payroll software.) As a household employer, you can either download NannyPay’s software straight to your computer or sign up for its cloud-based plan. Then, you’ll follow the setup guide to create your account.

Looking for a little more detail? We’ll break it down. When you’re ready to pay your domestic worker, nanny, or caregiver, you’ll enter their salary (or hourly rate), hours worked, and pay date to get their gross pay, or the total amount they’ve earned before taxes. The software will then calculate the taxes you need to deduct from the paycheck and remit to the IRS, leaving you with the nanny’s net pay, or the amount they take home when the pay period ends.

NannyPay will also calculate what you owe in taxes based on your employee’s tax contributions. Both you and your nanny, domestic worker, or other household employee will make the same Medicare and Social Security tax contribution. You’ll also pay an unemployment insurance tax that your employee does not contribute to—only employers pay that particular tax.

Best Nanny Payroll Services
SurePayroll
Best overall nanny payroll
NannyChex
Best outsourced service
Savvy Nanny
Best for 2+ employees
Paychex
Best benefit add-ons
NannyPay
Best DIY software
Learn more about our top brands.

What is the best nanny payroll software?

The best nanny payroll software depends largely on your specific needs and circumstances. For example, if you need only basic tax help, NannyPay is a great solution. If you want to provide comprehensive benefits and sign up for workers compensation insurance, you might want to try a payroll solution like Paychex.

If NannyPay is too DIY for your household, we'll point you toward SurePayroll. For $49.99 a month, the software calculates payroll taxes on your behalf (and guarantees accuracy) and automatically pays your nanny for you.

The takeaway

Nanny payroll doesn’t have to be hard, and with NannyPay, it doesn’t have to be expensive either.

Still not sure if NannyPay’s DIY solution will provide you with enough support? The software includes a 30-day free trial to help you decide if it’s a good fit or not.

Looking for nanny payroll software with more features? Read about our favorite nanny payroll services of the year for household employers.

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 spent two of the last four years writing for and with small-business owners—from dentists in Australia to plumbers in the Midwest. She spent the other two writing in depth about internet and security. She’s passionate about reading, hiking, and dedicating every spare second to writing for fun (at lunch, between meetings, on the train, before breakfast . . . ). Her content helps small-business owners tackle the logistics of running a business so they can focus more on their passions too.
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