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

§1The nanny tax: what household employers owe

Hiring a nanny, housekeeper, senior caregiver, or other household employee creates specific tax obligations that most household employers are not aware of until they face an audit or a nanny makes an unemployment claim.

The "nanny tax" refers to the combination of: withholding Social Security (6.2%) and Medicare (1.45%) from the employee's wages; paying the employer's matching portion (7.65%); registering with the state for unemployment insurance (SUI); and filing Schedule H with your personal tax return to reconcile the household payroll taxes. The trigger threshold is $3,000 paid to a single household employee in 2026 (up from $2,800 in 2025, per SSA.gov's domestic employee coverage threshold), above that, all of these obligations apply.

Nanny payroll software handles this complexity automatically, calculating withholding, generating quarterly tax deposits, and producing the year-end W-2 and Schedule H. The alternative is navigating IRS Publication 926 and state-specific requirements manually, which most household employers find prohibitively complex. This guide is written for a family hiring its own nanny directly. An agency employing multiple home health aides has different needs (EVV compliance, Medicaid billing), covered separately in our payroll software for home health care agencies guide.

§2Best nanny payroll tools compared

SurePayroll's Household plan is priced at $45/month for one employee (your nanny), confirmed on SurePayroll's own household pricing page 2026-08-24, up from $39/month earlier in the year. This includes federal and state tax filing, state tax ID registration assistance, unlimited payroll runs, W-2 and Schedule H generation, and mobile payroll runs. New users currently see a "months free" promo active on the same page. HomePay (Care.com) does not publish exact numbers on its own site, but multiple independent nanny-payroll review sites (NannyKeeper, MaidStaff, Beverly) converged on the same mid-2026 restructure: $59/month for the Essentials tier (you already have your federal EIN and state tax IDs) or $75/month for Plus (HomePay secures those IDs for you), with no setup fee and no separate year-end fee, replacing the older $75/month-plus-$100-year-end-fee structure. GTM Payroll switched from consultation-only pricing to a published tiered structure: EasyPay starts at $70/month (confirmed on gtm.com/household/pricing, first employee included, $20/month per additional employee), with HR Platinum ($127/month, $75 one-time setup fee) and Diamond ($227/month) tiers above it for families who also want benefits and HR support.

§3SurePayroll: best full-service nanny payroll software

SurePayroll has a dedicated household payroll product designed specifically for nanny and caregiver employers. It handles federal and state tax filings, W-2 generation, Schedule H preparation, and direct deposit or check payment. The nanny receives a pay stub via the SurePayroll employee portal.

SurePayroll's Household plan costs $45/month for one employee (raised from $39/month earlier in 2026) and is specifically designed for families with nannies, housekeepers, and other household workers. It's a single plan at a single price, no tiers, with state tax ID registration assistance, unlimited payroll runs, free 2-day direct deposit, and signature-ready Schedule H included. A "start today" promo offering several months free was still live as of 2026-08-24. Trustpilot reviewers who use SurePayroll for nanny payroll frequently highlight the automatic state and federal form handling, one user wrote: "My only regret is not finding it sooner." The self-service model means you initiate each payroll run (typically takes under 5 minutes once set up).

Ideal for household employers who want a purpose-built nanny payroll solution that handles all tax filing automatically, at lower cost than a full-service managed payroll firm.

§4HomePay: best for hands-off service

HomePay (owned by Care.com) is a fully managed nanny payroll service, you provide the hours, HomePay handles all tax deposits, filings, and year-end documents. Many household employers prefer this model because nanny payroll tax complexity is significant and the consequences of errors (back taxes, penalties) are real.

HomePay has no setup fee. HomePay does not list exact numbers on its own site, but multiple independent nanny-payroll review sites cross-checked in August 2026 converge on the same structure: $59/month ($708/year) for Essentials if you already have your federal EIN and state tax IDs, or $75/month ($900/year) for Plus if you want HomePay to secure those IDs for you and provide dedicated phone support. Neither tier carries a separate year-end fee for W-2 or Schedule H prep, that cost is now folded into the monthly rate, a change from the older $75/month-plus-$100-year-end-fee structure some third-party comparisons (including a competitor's own pricing page) still list. Contact HomePay directly to confirm current rates before signing up.

Ideal for household employers who want zero involvement in tax administration and are willing to pay a premium for complete management.

§5Frequently asked questions

Does HomePay have a setup fee? HomePay charges no enrollment or setup fee for Essentials ($59 monthly) or Plus ($75 monthly), according to independent sites compared in August 2026. Neither plan adds a charge at year-end to prepare Schedule H or W-2 forms. GTM EasyPay, SurePayroll and Poppins also waive setup charges for households. GTM charges $75 once for its higher HR Platinum and Diamond plans.

Which services waive setup charges for families? As of August 2026, the setup-free options include SurePayroll ($45 monthly), Poppins ($49 plus $10 monthly for each extra worker), HomePay ($59-75), GTM EasyPay ($70), and Gusto ($49 base with $6 for each person). The SurePayroll and Poppins amounts were checked on their own price pages. HomePay, Poppins and SurePayroll prepare Schedule H; Gusto leaves that task to you. Compare the monthly total as well as filing coverage.

Can I pay my nanny as a 1099 contractor to avoid the nanny tax? No. When you control the timing, location and manner of the work, IRS rules treat your nanny as an employee of your household. Calling that worker a 1099 contractor can lead to unpaid-tax assessments, penalties and interest.

What happens if I do not pay the nanny tax? The primary risk surfaces when the employee files for unemployment benefits or Social Security; they will have no record of earnings, which triggers a misclassification report to authorities. The IRS can assess back FICA taxes plus a 100% penalty under the Trust Fund Recovery Penalty.

Which setup-free service costs least for a nanny? SurePayroll Household costs $45 monthly with setup included. It handles tax submissions at state and federal levels, allows unlimited pay runs and prepares Schedule H for your signature. Gusto Simple costs a $49 base with $6 for each person, or $55 for one nanny. At $55 for one nanny, Gusto costs $10 more monthly than SurePayroll, and you must prepare Schedule H yourself.

Should I set up an LLC to pay my nanny? An LLC adds costs without shielding you from wage claims or nanny taxes. Courts regard employing a nanny as a personal relationship rather than business activity, leaving you personally liable either way. Put the effort into correct pay records and withholding.

How to run payroll for a nanny? Start by obtaining a free IRS EIN online, which takes about five minutes. Before paying wages, collect I-9 and W-4 forms and register for withholding as an employer with your state. Record hours and deduct FICA, which funds Medicare and Social Security, plus applicable state tax. After year-end, give your nanny a W-2 and attach Schedule H to Form 1040 if cash pay reached $3,000 in 2026. A specialist service handles these steps for many families.

Is Poppins Payroll worth it? Poppins can suit a family that wants the provider to submit taxes. Its $49 monthly fee includes year-end documents without a filing surcharge; independent reviews and users describe an easy setup and dependable weekly pay runs. One employee costs around $588 annually, about $312 below HomePay Plus. NannyKeeper starts near $10 a month for self-service use, but leaves you responsible for submitting taxes and complying with the rules.

Which service should I choose to pay a nanny? Choose by the filing help you need. SurePayroll Household at $45 monthly is the cheapest full-service choice with setup included. Poppins costs $49, and HomePay costs $59-75; people employing a nanny for the first time generally rate those two easier to use. A self-service option can cost less if you prepare Schedule H and the W-2, but you keep the compliance risk. Confirm the service supports Schedule H for household staff. Treating an employee as a 1099 contractor creates the IRS risks described above.

§6Poppins and Gusto: other household payroll options

Beyond the two specialists most families compare first, two more services handle nanny and household payroll well. Poppins Payroll runs $49/month for one employee, no setup fee, confirmed on Poppins' own pricing page in August 2026 (a $10/month surcharge applies for each additional household employee, so a family with a nanny and a part-time housekeeper pays $59/month, not $49). It registers you with state agencies, files Schedule H prep documents, handles new-hire reporting, and processes direct deposit, and new clients get their first month free. Poppins operates in nearly every state but skips a handful, so confirm coverage for your state before signing up. Families who want a low, predictable bill and a clean interface tend to land here.

Gusto is built for small-business W-2 and 1099 payroll, but plenty of households use it for a nanny because the Simple plan starts at $49/month base plus $6 per person. For a single nanny that's $55/month, slightly above Poppins, but you get automatic multi-state tax filing, unlimited pay runs, and an employee app where your nanny views pay stubs and W-2s directly. Gusto carries a 4.5/5 on G2 across thousands of reviews. The catch: Gusto does not file Schedule H for you, and it won't remind you about the quarterly estimated-tax payments household employers owe. You handle that side yourself or with a CPA.

How to choose between them: pick Poppins if you want the cheapest fully-managed household service and your state is supported. Pick Gusto if you also run a side business, employ other 1099 contractors, or want a polished self-service portal and don't mind handling Schedule H separately. Both now add a per-employee charge for a second household worker (Poppins $10/month, Gusto $6/month), so a family with a nanny and a part-time house manager should compare the two on total monthly cost rather than assuming either one is flat-rate; a single-nanny household usually saves the most money and mental overhead with a full-service specialist like Poppins or SurePayroll.

§7Schedule H, the $3,000 threshold, and quarterly estimated taxes

The federal trigger for household employment taxes in 2026 is $3,000 in cash wages paid to any one household employee during the year (up from $2,800 in 2025 and $2,700 in 2024, per SSA.gov's domestic employee coverage threshold, which indexes upward most years). Cross that line and you owe Social Security and Medicare (FICA) taxes: 7.65% withheld from your nanny plus a matching 7.65% you pay as the employer, 15.3% combined. Separately, if you pay $1,000 or more in any calendar quarter, you owe federal unemployment tax (FUTA) on the first $7,000 of wages, a threshold that has not moved in years. The $3,000 FICA threshold applies separately to each employee. The $1,000 quarterly FUTA trigger uses cash wages paid to all household employees combined in the current or preceding year; after that trigger is met, the $7,000 FUTA wage base applies to each employee (IRS Publication 926).

Schedule H is the form that reconciles all of this. You don't file a separate quarterly employment return the way a business does. Instead, you report the full year's household employment taxes on Schedule H and attach it to your personal Form 1040 at tax time. That single annual filing is what makes nanny payroll different from standard business payroll, and it's the step Poppins, SurePayroll, and HomePay automate while a general tool like Gusto leaves to you.

Because the taxes ride on your personal return, the IRS expects you to pre-fund them through quarterly estimated tax payments using Form 1040-ES. Skip them and you can owe an underpayment penalty even if you pay the full balance in April. The 2026 due dates, per the IRS's own 2026 Form 1040-ES, are April 15, June 15, September 15, and January 15, 2027. A practical approach: total your expected annual FICA and FUTA, divide by four, and add that to whatever estimated income tax you already send in. Increasing your own W-2 withholding at a separate job is an alternative that sidesteps the quarterly schedule entirely. A payroll service that calculates the per-quarter figure for you removes the most common source of household-employer penalties.

§8Workers' comp, domestic-employer insurance, and pricing

Payroll taxes aren't the only obligation. Many states require workers' compensation insurance for household employees, and the rules vary sharply. California, New York, New Jersey, and Illinois mandate coverage for a nanny working set hours; states like Texas leave it optional. If your nanny is hurt on the job and you carry no policy in a mandatory state, you can face fines plus direct liability for medical bills and lost wages. Some homeowners policies add a domestic-worker workers' comp endorsement for a modest premium, which is often the cheapest route for a single employee.

Beyond comp, consider an employment practices angle: household employers have been sued over wrongful termination and wage disputes. A standard homeowners or umbrella policy may extend some coverage, but read the domestic-employee clause before assuming. The payroll services help indirectly. Accurate records of hours, overtime, and pay are your first defense in any wage claim, which is one more reason to run a real payroll instead of paying cash.

Here's how the main household payroll options compare on price and what they cover:

The pricing gap between the $45-49 full-service specialists (SurePayroll, Poppins) and HomePay's $75/month Plus tier buys you concierge-level handholding: dedicated phone support, EIN/tax ID setup, and a household-specialist team; HomePay's cheaper $59/month Essentials tier gets close to that price gap if you already have your tax IDs sorted. For a first-time employer nervous about Schedule H and state registration, the Plus-tier premium often pays for itself in one avoided penalty. A budget-focused family comfortable with a clean self-service tool, and willing to handle Schedule H or hand it to a CPA, will pay $55 monthly for one nanny with Gusto, above SurePayroll at $45 and Poppins at $49, while handling Schedule H separately. Either way, factor workers' comp into your real cost: in a mandatory state, a small endorsement on your homeowners policy frequently runs less than $300 a year and closes the largest uninsured gap most household employers overlook.

We break this specific case down separately in Payroll software for Veterinary Practices.

For readers in that situation, our Payroll software for Landscaping companies guide goes into more detail.