Best Nanny & Household Payroll Software 2026: No Setup Fee Options

§1The nanny tax: what household employers owe

Nanny payroll software helps a household calculate wages, pay employment taxes and prepare year-end documents. The shortlist here covers services that explicitly offer household payroll. Business payroll support is a separate eligibility question: a product that pays ordinary W-2 employees does not necessarily accept a family employing a nanny.

IRS household employment tax guidance defines a household employee by the work performed in your home and your control over how it is done. Publication 926 states: “The worker is your employee if you can control not only what work is done, but how it is done.” Paying through an app or calling the worker a contractor does not decide employment status.

This comparison uses linked vendor pricing and service descriptions checked October 13, 2026, plus IRS, SSA and DOL guidance for tax and wage-law boundaries. Monthly prices are quoted for the stated employee count. Annual amounts below are arithmetic, not vendor quotes. Support descriptions are published features, not product-use or service-quality ratings. An agency employing home health aides has different requirements; see our home health care payroll guide.

§2Household payroll services compared

Sources: Nest pricing, SurePayroll Household, Poppins, HomePay pricing, and GTM EasyPay, checked October 13, 2026. The annual column assumes twelve paid months at the listed regular or starting fee. It excludes wages, employer taxes, insurance, extra employees, introductory discounts and conditional charges. A lower annual service fee does not establish better support or lower total employment cost.

Use the same questions with each provider: Does it accept your household and state? Who registers the tax accounts? Who pays each agency? Who sends the W-2 and who attaches Schedule H to your personal return? Ask about cancellation before year-end, correcting old wages, and adding an employee. Obtain the terms that apply to your account before comparing totals.

§3SurePayroll: household payroll and tax filing

SurePayroll Household shows a $45 monthly list price and a $39 promotion for one employee. Its household plan includes state tax ID registration assistance, automatic federal and state tax filing and deposits, unlimited payroll runs, free two-day direct deposit, and a signature-ready Schedule H. The site also offers scheduled automatic payroll; there is no reason to assume every run must be entered manually.

The promotional price should stay separate from the regular price. Ask how long the offer lasts, what a second employee costs, and when payroll must be approved or changed. The advertised filing service is useful to compare, but it does not guarantee that hours, wage rates and household information entered into the account are correct.

§4HomePay: Essentials versus Plus

HomePay pricing publishes Essentials at $59/month and Plus at $75/month. Both include federal and state tax registration, quarterly tax filings, year-end forms, automated payroll and direct deposit, and unlimited phone, chat and email support. You do not need Plus merely to obtain employer tax IDs or telephone support.

Plus adds dedicated account management and audit support, an employee app for hours, time off and expenses, tax-agency notice management, and Care.com membership. At the published monthly fees, Plus costs $192 more over twelve months than Essentials ($900 minus $708). Compare those additions with the help you need; a hypothetical avoided penalty cannot establish that the upgrade will pay for itself.

§5Frequently asked questions

How much is a payroll service for a nanny? The listed one-employee fees run from SurePayroll’s temporary $39 rate to HomePay Plus at $75/month; GTM’s higher tiers cost more. Compare the regular fee, filing coverage and account conditions using the official pricing links above.

Can I use Gusto for nanny payroll? No. Gusto’s eligibility page says it excludes households from its payroll service. Preparing Schedule H yourself does not change that product restriction. Choose a specialist that accepts your family’s nanny payroll.

Is it better to pay my nanny in cash or through payroll? Cash or a transfer app is a payment method, not an exemption from employment taxes. Keep wage records and apply the tax rules regardless of how money is sent. Federal tax rules explains the employer’s obligations.

Do I owe overtime if my nanny works more than 40 hours a week? A covered, nonexempt domestic employee generally receives overtime after 40 hours in a workweek. A qualifying live-in employee has a federal exception; state rules may provide greater protection. Check DOL live-in guidance and your state’s rule.

How does payroll work when two families share a nanny? Each household needs its own applicable tax records and forms. Separate payroll accounts alone do not determine overtime. The families may be joint employers, so check the facts using the Labor Department answers before separating hours.

Does HomePay require Plus for tax registration? No. HomePay pricing includes employer-account registration in both subscriptions. The higher tier supplies an assigned account contact, help with audits and notices, and tools to log hours and expenses.

Which services include setup without a separate fee? Nest pricing lists no setup fee, Poppins advertises no setup costs, and GTM EasyPay includes employer setup in EasyPay. GTM’s higher HR plans have different setup and minimum-term rules. Get the provider’s enrollment terms for your account.

Can I pay my nanny as a 1099 contractor to avoid the nanny tax? A label cannot change the relationship. A nanny whose work you control in your home generally works as your employee. Consult the employee-status rules in IRS employee-status rules rather than choosing a form to avoid tax.

What happens if I do not pay the nanny tax? Unpaid taxes, interest and applicable penalties may be assessed. Under section 6672, the IRS must establish that someone with collection or payment duties acted willfully; it is not an automatic extra 100% of every employer and employee tax. The section on records below links to the IRS explanation.

Which setup-free service costs least? SurePayroll’s displayed $39 promotion is below Nest’s listed $42 monthly rate for one employee. That comparison concerns the displayed fees, not the whole market or support quality. Extra employees and cancellation can change the bill.

Should I set up an LLC to pay my nanny? Do not assume a business entity changes the worker’s status or makes a business payroll product eligible. First identify who employs the nanny under IRS classification guidance, then confirm the filing approach with the service and your tax accountant.

How do I run payroll for a nanny? Establish the required employer accounts, collect the employee information, record workweek hours, calculate wages and taxes, make payments, and retain the resulting records. The 2026 household tax guide includes a household-employer checklist and filing requirements.

Is Poppins Payroll worth it? Compare its $49 one-employee fee and household-only scope with the filing and support you require. Poppins advertises nationwide availability; ask about state registration prerequisites, extra employees and fees when an account closes before filings.

Which service should I choose to pay a nanny? Choose by the work you want delegated. Ask the same filing, registration, year-end and cancellation questions of the shortlist. Neither a low monthly fee nor a generic review score proves the provider fits your household.

§6Poppins and the Gusto exclusion

Poppins lists $49/month for one employee and service in all 50 states. Active accounts include payroll, tax payments, quarterly filings and year-end W-2, W-3 and Schedule H documents. Its current terms flag separately billed filings after early account closure and possible fees for registrations, amendments or prior wages. Some states require the employer to complete or authorize initial registration.

Gusto household payroll policy states: “We do not support household employer payroll”. Gusto is therefore excluded from the recommendation tables. Its small-business features, prices and reviews do not establish suitability for nanny payroll. Poppins also describes itself as household-only and directs small businesses to Gusto, reinforcing that these are distinct service scopes.

If you employ both household staff and business staff, tell each provider which workers belong to which employer arrangement. Obtain explicit acceptance of the household account before enrolling a nanny.

§7Schedule H, the $3,000 threshold, and tax payments

SSA coverage thresholds lists the 2026 domestic employee coverage threshold at $3,000. Subject to the exceptions in IRS guidance, paying that much in cash wages to one household employee triggers Social Security and Medicare tax under FICA (the Federal Insurance Contributions Act) on covered wages, not just the amount above $3,000. The usual employee and employer shares are each 7.65%; higher earnings have additional limits and rules.

IRS household employment tax guidance separately uses a $1,000 cash-wage test for all household employees combined in any calendar quarter of the current or preceding year for FUTA (the Federal Unemployment Tax Act). The first $7,000 per employee is the FUTA wage base; the final rate depends on applicable credits. Federal income-tax withholding follows different rules and is not automatic merely because the FICA threshold is reached.

IRS Publication 926 (2026) explains Schedule H and the options for paying household employment taxes through estimated payments or increased withholding from other income. Tax payments and personal-return filing are different tasks. A service’s signature-ready Schedule H still needs to reach whoever prepares your return. Required 2026 W-2 delivery and SSA filing are due February 1, 2027; the regular Schedule H filing deadline is April 15, 2027, subject to applicable extensions.

§8Overtime, hours, and the live-in exception

DOL Fact Sheet 79B explains the federal overtime exemption for domestic workers residing in the employer’s home permanently or for extended periods. Its extended-period examples include living, working and sleeping there five days a week for at least 120 hours, or residing there for five consecutive days or nights even with fewer than 120 hours. An occasional overnight stay or a temporary two-week assignment does not establish the exemption.

Keep actual hours by workweek even when pay is based on a guaranteed schedule. Ask how the payroll service handles your state’s overtime, rest and leave requirements. Do not infer a nationwide exemption from a “live-in” label: federal and state coverage must both be considered. Our exempt versus nonexempt guide explains the broader classification issue.

§9Nanny share: tax accounts and joint-employer overtime

In a nanny share, keep each household’s wage and tax records distinct and confirm the registrations and year-end forms required for each account. Agree on the wage split, schedule, leave, backup care and what happens if a family leaves. A written arrangement helps the provider identify which wages it is processing; it does not decide the legal employer relationship by itself.

The per-household tax threshold and the overtime test answer different questions. Under DOL domestic-service FAQs, joint employment depends on the actual relationship. If families jointly control scheduling, supervision or pay, seek a review before assuming that hours can be separated for overtime. Tell the payroll service about the share and ask it to confirm the account arrangement. For state unemployment context, see our state unemployment tax guide.

§10Tax breaks that offset household payroll costs

The IRS Working Families Tax Cuts guidance describes a maximum 50% Child and Dependent Care Credit rate beginning in 2026. Eligibility and the percentage depend on your circumstances; the expense caps remain $3,000 for one qualifying individual and $6,000 for two or more.

IRS Publication 15-B (2026) gives a dependent-care assistance exclusion limit of $7,500, or $3,750 for married filing separately, subject to the plan and applicable eligibility rules. Excluded dependent-care benefits reduce expenses available for the care credit; IRS Topic 602 explains that interaction. Ask your return preparer to calculate the permitted combination.

§11Workers’ compensation, records, and the total bill

Ask your state’s labor or insurance agency whether household workers need workers’ compensation coverage, then ask the provider what assistance it offers. A payroll subscription is not an insurance policy. Obtain a household-specific quote and verify any coverage in your homeowners policy.

IRS trust fund recovery penalty guidance requires a responsible person and willful failure to collect or pay trust fund taxes. Its base is the unpaid trust fund portion, including employee withholding. The employer’s FICA share is outside that base.

Keep your filing confirmations and reconcile the service’s reports with wages actually paid. If a tax notice arrives, identify whether the provider, employer or return preparer is responsible for the response. A subscription price and a promise to prepare forms do not answer that operational question.