NannyPay

Continuing a national trend toward improving the labor conditions and wages of nannies, eldercare providers and other household and domestic workers, Philadelphia City Council recently passed a “domestic worker bill of rights”.  The legislation, passed on October 31, 2019, and expected to be signed into law by the mayor shortly, will take effect in May, 2020, and requires among other things that nannies, house cleaners, and other household employees be provided a written agreement expressly outlining the terms of their employment, such as pay rates, work schedules and benefits.  The new law also guarantees that nannies and other in-home workers accrue [...]

Easy Payroll Solution Keeping track of tax information while employing a nanny may appear at first to be overwhelming; however, paying your nanny taxes and staying legal is very important for protecting you, your family and your nanny and is not as complicated as you may think. If you have a nanny and you pay them at least $2,700 a year*, they are considered a household employee and according to the IRS you are responsible for paying employment taxes on their wages, which includes Social Security and Medicare taxes (commonly known as FICA)  You may also owe state and [...]

Managing your Home Employees' Payroll and Taxes Did you know that if you have a household employee, in order to do things legitimately, you have to have a payroll system in place to pay tax obligations if you pay your employee more than $2,700 a year (as of 2024). Having a payroll company do it for you, however, can add thousands to your costs. But with a little elbow grease and patience, you can actually do this yourself with DIY payroll management software. And that is exactly what NannyPay is – a secure and cost-effective payroll software for calculating [...]

Paying your Nanny Taxes Most families are not tax specialists. So when they first hire a household caregiver or nanny, fulfilling the tax requirements of the IRS can seem at first a bit overwhelming.  Nanny payroll services may seem an attractive option at first – until you consider the overall cost. With setup fees and other costs, a payroll service could cost you more than $1,000 in the first year alone. But with just a little bit of initial effort, you can learn how to do it yourself, and NannyPay software is here to help. For over twenty years, NannyPay [...]

NannyPay is the Gift that Keeps Giving  Here at Essentia, we are all software geeks but when we heard about a customer who asked his spouse if she would like a copy of NannyPay for Christmas, we nearly fell off our chairs.  His wife told him, “Don’t you ever, ever consider giving me software as a gift! Go put some thought into it! Remember when you bought me a calculator for my birthday? That didn’t go well, did it?”   Whoa, Ok, we know thinking of the right gift is not easy but maybe your spouse has a point.  A [...]

Federal Tax Withholding's for a Nanny If you are employing a nanny or caregiver and pay them $2,700* or more in a calendar year, you are by definition a “household employer”.  When you hit this threshold there is no option to whether or not you can pay them under the table.  This means, by law, you must pay taxes - period! So the real question becomes, how do you go about properly paying your employee and your taxes?  Required Nanny Tax Withholdings As an employer, you are required to withhold Social Security and Medicare taxes. Depending on the state [...]