Full-service household payroll Nanny payroll, made easy. We handle the tax work.
Get going in about five minutes. Run payday from your phone or the web, on your schedule. Leave the tax paperwork to our tax team, and if you’d like, your employee can now enter their own information and hours. Save time and hassle all around.
- Payroll calculations and professional pay stubs
- Tax setup, required filings/tax payments and new hire reports
- NewEmployee accounts and timesheets included
$42/month for one employee · 14-day free trial · Cancel anytime
$42/mo · All 50 states · Timesheets included
You could do nanny payroll yourself. Or let us handle it.
Here is what running household payroll on your own takes, and what Nest Payroll’s tax team takes off your plate.
| Task | On your own | With Nest Payroll |
|---|---|---|
| Getting set up | Apply for a federal employer ID number, register with your state tax and unemployment agencies, and report your new hire. | Our tax team works with the federal and state agencies to set up your required tax accounts and submits your new hire report.* |
| Tracking hours | Collect hours by text or on paper and keep your own records. | Enter the hours yourself, or Newinvite your employee to enter their own. Either way, you review and approve. |
| Every payday | Work out overtime, Social Security, Medicare and any income tax withholding, then write up a pay stub. | Pay, taxes and take-home pay are calculated for you. A professional pay stub is emailed to your employee. |
| During the year | File your state wage reports and pay state taxes on each agency’s schedule. Make federal estimated tax payments so you don’t owe an underpayment penalty. | We prepare and file your required quarterly and annual returns and remit your tax payments when they’re due. |
| Year-end | Prepare the W-2 and W-3, file them with Social Security, give your employee the W-2 by the end of January, and complete Schedule H for your own tax return. | We prepare and file the W-2 and W-3 and give you a signature-ready Schedule H. |
| Sick time and PTO | Learn your state and city rules and track sick time balances yourself. | Sick time and paid time off are tracked. Your employee can see their balances. |
| Records and reports | Keep your own wage and tax records, and put together the paperwork for Dependent Care FSA claims yourself. | Your tax documents and payroll reports are in your account, plus Dependent Care FSA reports for easy reimbursements. |
| Questions | Search agency websites and wait on hold. | Concierge text and email support from our team in California. |
| Cost | No fee. Your time, plus penalties and interest if a filing is late or wrong. | $42/month for one employee. No setup or per-payroll fees. |
*Some states require the employer to complete or authorize registration before Nest Payroll can complete the required tax work. See the disclaimers below.
As a CPA, I have manually handled payroll, and Nest does all the compliance work including tax filings and tax payments in a fraction of the time — with no mistakes. Both times I've reached out to support, I received a response within 1-4 hours. Highly recommend!
— 5 Star App Store ReviewPaid your nanny cash before? We fix back taxes and get you compliant quickly.
Let your employee enter their hours. You stay in control.
Happy entering hours yourself? Nothing changes. If you’d rather not, invite your employee to their own account and they can submit their hours for you to review. It’s optional, and included in every plan.
Invite your employee, if you like
Whenever you’re ready, email an invitation from your household account. Your employee creates their own login, reviews their pay rate, and accepts. They can enter their information themselves.
They submit their hours
Your employee enters regular, overtime, sick, and vacation hours, week by week. They can add notes, copy last week, or mark a week they didn’t work, then submit when ready.
You review and pay, as always
Each submitted timesheet creates a pay stub for your review. Approve it, make adjustments, or return it with a note. Changes are recorded, and your employee can correct and resubmit a returned timesheet. Approved timesheets are locked.
Illustrative walkthrough · Sample household and employee
If you use it: less chasing, clearer records.
- Hours and corrections stay together. Review submitted hours and send back a note when something needs attention.
- Pay and applicable taxes are calculated. Review the pay stub before approving and paying your employee.
- Your employee can see their own records. Paid pay stubs, year-to-date totals, and sick and vacation balances are available in their account.
You can pay your employee’s take-home pay using Venmo or Cash App right from the pay stub, or pay separately with Zelle, your own bank transfer or write a check.
What people are saying
Using for more than 2 years
“Great app and support staff. They make managing and paying employees very simple. They provide excellent documentation and support to help you make tax payments throughout the year and it’s so easy to file your tax return. Very responsive when asked questions. Priced just right too."
— WASpsyched, 02/08/2024, Apple App Store
Really fast easy setup
“Originally to hire a nanny I was trying to use SurePayroll, but they required me to call their salesperson constantly to get setup, and the process was onerous involving contracts to sign, credit checks, and even needing a letter from my bank. I eventually gave up after months of this annoying process and tried Nest instead. To my amazement, I didn’t need to talk to anyone or even wait at all, and within literally 5 minutes was generating paystubs for my nanny!”
— Melzidek, 08/03/2024, Apple App Store
Relief for the Non-Accountant
“It was so tempting for us to hire a nanny for cash just based on the fear of doing the payroll requirements but I’m so glad that reasonable temperaments prevailed and we instead went with Nest. It’s been so easy and we can rest assured that we are doing everything by the book.”
— MotherNen2016, 04/08/2024, Apple App Store
A little input from you. A lot handled by Nest Payroll.
Get going in five minutes
Sign up, add your employee, and create your first pay stub — in minutes, not hours.
Invite your employee to enter their own information and weekly hours, or enter them yourself.
Pay with Venmo or Cash App right from the pay stub, or separately by Zelle, bank transfer or check.
Track PTO, sick days, and reimbursements for education or healthcare.
Set payroll reminders or automate recurring pay stubs.
We handle the tax work
We set up your federal and state tax accounts, file your new hire reports, handle all required quarterly and annual tax filings and payments, prepare and file your W-2s and W-3, and give you a signature-ready Schedule H.
Access payroll and wage reports, plus Dependent Care FSA reports for easy reimbursements.
Real people when you need help
Concierge text and email support, right from your account, Monday–Friday from our California support team.
Small monthly price. Room to breathe.
Full-service household payroll, with real people ready to help when you have a question.
- Paycheck calculations and pay stubs
- Federal and state tax payments, required filings and new hire reports
- Year-end W-2s, W-3 and Schedule H
- Tax documents, payroll reports and Dependent Care FSA reports
- Sick time and PTO tracking
- Free employee accounts and timesheets
- Text and email support
$42/ month*
No setup or per-payroll fees · Cancel anytime
Try Nest Payroll free for 14 days →More people in your household?
Up to 2 employees: $49/month · Up to 6: $69/month
14-day free trial for new subscribers. Year-end work is included for active, ongoing accounts. No cancellation fee. If you cancel, you can choose to have Nest Payroll finish any remaining tax work for an additional fee. Catch-up and amended filings are priced separately. Full pricing details.
Payroll for every kind of household employee
Whether you employ a nanny, babysitter, au pair, or nanny share — or a senior caregiver, home health aide, house cleaner, personal assistant, dog walker, or any other household worker — Nest Payroll handles your required registrations*, taxes, filings, and compliance for $42/month.
A little know-how. A lot more confidence.
Hiring for the first time? Getting caught up? Start with our free tools and practical guides.
More ways to get ready: Free nanny contractNanny share guideGross-up calculator
Frequently Asked Questions
Do I have to pay taxes if I hire a nanny?
Yes. If you pay a household employee $2,800 or more in 2025 ($3,000 in 2026), the IRS considers them a household employee and requires you to withhold and pay Social Security, Medicare (FICA), and federal/state unemployment taxes. This is commonly called the "nanny tax." Failing to pay can result in penalties, back taxes, and interest.
Is my nanny a W-2 or 1099 employee?
Nearly always a W-2 employee. Because you control when, where, and how your nanny works, the IRS classifies them as a household employee — not an independent contractor. Issuing a 1099 instead of a W-2 is a common mistake that can trigger IRS penalties for both you and your nanny.
What happens if I pay my nanny under the table?
You risk IRS penalties including back taxes, interest, and fines that can exceed the original amount owed. If your nanny files for unemployment or gets injured on the job, you could face additional legal and financial liability. It can also put your career at risk: attorneys, doctors, finance professionals and others in licensed professions can face discipline, up to losing their license, over tax violations (more on why to pay legally). The good news: you can get caught up and become compliant retroactively. Use our free catch-up calculator to see exactly what you'd owe.
What is Schedule H and do I need to file it?
Schedule H (Form 1040) is the IRS form used to report household employment taxes. You must file it with your personal tax return if you paid a household employee above the annual wage threshold. It covers Social Security, Medicare, and federal unemployment tax (FUTA) for your employee.
How much does a nanny payroll service cost?
Nest Payroll Essentials is $42/month for one employee. It includes payroll calculations, pay stubs, tax payments, and required filings for active subscriptions. Start with a 14-day free trial. Additional fees may apply for catch-up work and optional services; see our pricing page for details.
How do I set up payroll for my nanny?
You'll need to apply for an employer identification number (EIN), register for state tax accounts, determine the correct withholdings, and set up a system for regular pay stubs and tax filings. With a payroll service like Nest Payroll, getting started takes about 5 minutes — we set up your federal and state tax accounts and handle the withholdings, pay stubs, and all filings for you.
Can I do nanny payroll myself?
Yes. Nothing requires you to use a payroll service. On your own, you register as an employer with the IRS and your state, calculate the taxes on every paycheck, file state reports and pay taxes during the year, and prepare a W-2, W-3 and Schedule H at year-end. Nest Payroll does that work for $42/month for one employee. See the side-by-side comparison above.
Can my nanny enter their own hours?
Yes, if you want them to. It’s optional: you can keep entering hours yourself, or invite your employee to do it. Employee accounts are included in every plan. You invite your employee from inside your Nest Payroll account; they create their own login, enter their weekly hours and submit them. Each submitted timesheet becomes a pay stub for you to review, adjust or return before you approve and pay. Your employee can also see their paid pay stubs, year-to-date totals, and sick and vacation balances.
Can I get in trouble for not filing nanny taxes in previous years?
Yes, the IRS can assess back taxes, penalties, and interest for unfiled nanny taxes. However, voluntarily getting compliant before the IRS contacts you typically results in far lower penalties than being caught in an audit. Nest Payroll offers a dedicated catch-up service — use our free catch-up calculator to estimate what you owe, and we'll handle the rest.
What tax forms do I need to give my nanny?
Household employers typically need to provide a W-2 to their nanny at the end of the year. The W-2 reports total wages and any taxes withheld, and must be delivered by January 31. You may also need to provide regular pay stubs each pay period. Most states — including California and New York — require detailed wage statements, while a few states do not. With a payroll service like Nest Payroll, we automatically generate W-2s and compliant pay stubs, so you don't have to worry about meeting these requirements.
Take care of your people. We’ll take care of payroll.
Start with 14 days free and see how easy paying your household employee can be.
Let’s get you started → Or explore the free tools first →Disclaimers:
*The $42/month Essentials subscription includes household payroll services for one employee, including payroll processing, tax payments, all required quarterly/annual filings, and year-end tax documents (W-2, W-3, and Schedule H) for active, ongoing accounts with no gaps in subscription payments.
Nest Payroll works with federal and state tax agencies on your behalf to establish and maintain required tax accounts, based on applicable employment laws and wage thresholds. Please note that some states require the employer to complete or authorize registration before Nest Payroll can complete the required tax work.
There is no cancellation fee. If you cancel before the end of a quarter or calendar year, you can complete any remaining required filings and year-end tax work yourself, or choose to have Nest Payroll complete them for an additional fee. Additional fees may also apply for services such as amended filings, adjustments for prior-period wages or catch-up services.
Pricing and applicable fees may change over time. Please refer to our Pricing page and Terms of Service for full details for the most up-to-date information.