{"id":14,"date":"2025-12-12T12:50:54","date_gmt":"2025-12-12T12:50:54","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/7-steps-for-creating-a-nanny-payroll-account\/"},"modified":"2025-12-12T12:50:58","modified_gmt":"2025-12-12T12:50:58","slug":"7-steps-for-creating-a-nanny-payroll-account","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/7-steps-for-creating-a-nanny-payroll-account\/","title":{"rendered":"7 steps to create a caregiver or nanny payroll account"},"content":{"rendered":"

It’s hard work finding the perfect nanny or senior caregiver to take care of your loved ones. But before they can start, you need to take care of one more important task: setting up their payroll and tax withholdings. Below is a step-by-step guide for how to do it correctly, but know that HomePay can take care of everything for you if you need our help. <\/span><\/span><\/span><\/p>

\"Cross<\/a><\/figure><\/div>

Step 1: Confirm you have tax and payroll responsibilities<\/strong><\/span><\/span><\/h2>

Before you start the payroll process, you want to be sure you are required to pay the “nanny tax.” Some nannies and caregivers work part time or unusual hours, making many families unsure of their exact <\/span>legal and financial obligations<\/span><\/span><\/a>. The simple approach is to take a look at your employee’s wages. Will they add up to $3,000 or more in a calendar year? If so, you are required to withhold taxes from their paycheck and pay employer payroll taxes.<\/span><\/span><\/span><\/p>

Step 2: Talk to your nanny or caregiver about how payroll works<\/strong><\/span><\/span><\/h2>

Some caregivers unfortunately are paid under the table and don’t understand <\/span>how professional payroll works<\/span><\/span><\/a> and why it’s actually beneficial to nannies and senior care workers<\/span> to be paid on the books. Make sure to discuss the difference between gross wages (before taxes) and net pay (after taxes) so your caregiver isn’t caught off guard when they receive their first paycheck. This is also a good time to go over things like overtime pay and paid time off, which should be detailed in a <\/span>nanny contract<\/span><\/span><\/a>.<\/span><\/span><\/span><\/p>

Step 3: Find a household payroll service if you need help<\/strong><\/span><\/span><\/h2>

Yes, you can handle your caregiver’s payroll and the subsequent tax process on your own, but this means an estimated 50-55 hours of preparing tax returns, performing payroll calculations and studying the ins-and-outs of federal and state household employment labor law. An accountant might also be able to help, but many are not experienced in this highly specialized area of the tax code. Additionally, some accountants are not set up to manage payroll or provide the ongoing support and guidance on labor law issues that most families need.<\/span><\/span><\/span><\/p>

Care.com HomePay<\/span><\/span><\/a> can help take all the work and worry out of being a household employer by handling all aspects of nanny taxes for you.<\/span><\/p>

Step 4: Gather the necessary documents<\/strong><\/span><\/span><\/h2>

To set up payroll and be prepared for regular tax filing, you’ll need to pull together certain information about you and your nanny.<\/span><\/span><\/span><\/p>

For you, this includes:<\/span><\/p>