Calculating Nanny Taxes and Payroll Setup

Hiring a nanny can be a daunting task and if you’ve done your research, there’s a lot that goes into finding the best fit for your family. Nanny Harmony specializes in taking care of most of the legwork for you in finding the best fit, but ultimately, how you decide to compensate your nanny is up to you.

There are certain situations where cash can be a temporary, acceptable form of compensation, however:

The legal and proper way to compensate your nanny, is through a payroll service.

Nanny Harmony partners with HomePay to take even more guess work out of hiring and onboarding a nanny and to ensure a seamless transition of adding a household employee. HomePay has been great for families and nannies appreciate the simplicity of the service as well. 

HomePay functions as your personal HR associate in many ways such as: onboarding your nanny, calculating correct federal and state taxes to withhold, preparing their taxes every year, and direct depositing their paycheck and preparing paystubs for them.

HomePay also offers unlimited support to both families and nannies with any questions regarding compensation and/or taxes.  

In addition to providing an excellent service for families, there are benefits to compensating nannies through a payroll service as well. There may be a tax break for families at the end of the year for hiring and compensating a nanny on the books and nannies also receive benefits such as unemployment insurance and social security. Not to mention, compensating through a payroll service makes for seamless tax filing in April! 

Navigating the process of hiring a nanny for the first time (or even the third time) can be challenging and compensating the nanny appropriately is a whole other challenge. With Nanny Harmony’s expertise on the compensation range in the Chicagoland area and a team like HomePay to document and organize the financial aspect of a household employee, families are able to spend more time showing the nanny around their homes and making them feel comfortable rather than trying to keep tabs on compensation and budgeting themselves. 

For more information on HomePay, please visit https://partners.myhomepay.com/nannyharmonychicago.