Once you pay a nanny, housekeeper or caregiver above the IRS thresholds, you are a household employer. You can hand the payroll to a service, buy software that prepares the forms, or do it all yourself. This post puts the three side by side on cost and on the work each leaves with you, using each provider's live pricing page on 8 October 2026 and IRS Publication 926 (2026).
What household employee payroll involves
Publication 926 says Social Security and Medicare apply once you pay one household employee $3,000 or more in cash wages in 2026, and federal unemployment tax once you pay $1,000 or more in total cash wages to household employees in any calendar quarter of 2025 or 2026. Past those lines, the work falls on four calendars.
| When | Task |
|---|---|
| Once, at the start | Get an EIN; register with your state for unemployment tax and, where it applies, income tax withholding; have the employee complete Form I-9, and Form W-4 if you agree to withhold income tax |
| Every payday | Work out gross pay, Social Security and Medicare at 7.65% and any agreed withholding; pay the net amount; give a pay stub where your state requires one |
| Every quarter (most states) | File the state unemployment return and pay the tax, on your state's schedule |
| Once a year | Give the employee a W-2 and file it with Form W-3 by February 1, 2027; file Schedule H with your 2026 Form 1040 by April 15, 2027 |
A family that owns a business can instead report these taxes on the business's Form 941, as our post on Form 941 or Schedule H explains. For most families, Schedule H is the return.
What household payroll services cost
| Poppins Payroll | HomePay Essentials | HomePay Plus | SurePayroll household | NannyKeeper Starter | |
|---|---|---|---|---|---|
| Published price | $49 a month | $59 a month | $75 a month | $39 a month | $8 a month or $100 a year |
| Employees included | 1, then $10 a month each | Not stated | Not stated | 1 | 1 |
| Registers you with tax agencies | Yes, federal, state and local | Yes, federal and state | Yes, federal and state | Not stated | No (EIN help on the annual Plus plan) |
| Files quarterly returns for you | Yes | Yes | Yes | Yes, federal and state | Not stated |
| W-2 and Schedule H | Yes, for active customers | "End-of-year tax forms" | "End-of-year tax forms" | W-2 made for you; Schedule H ready to sign | Generated for you |
| Direct deposit | Yes, or your own check | Yes | Yes | Yes | Not stated per plan |
Checked October 8, 2026. From each company's own pricing page (sources below). Poppins lists extra fees if you close mid-year ($49 for quarter-end filings, $110 for year-end documents) and says state registration or filing fees may apply. HomePay Plus shows a first month free. SurePayroll's page mentions a limited-time offer without its terms. NannyKeeper is software: its page lists tax calculations, pay stubs, W-2 and Schedule H generation but doesn't say it files returns for you.
Over 12 months, before extra fees, that is $588 for Poppins with one employee, $708 for HomePay Essentials, $900 for HomePay Plus and $468 for SurePayroll, which shows that yearly figure in its own comparison table. NannyKeeper Starter is $100 on its annual plan, and you do the filing.
What doing it yourself costs
In fees, close to nothing: you file the IRS forms yourself. The cost is your time and the risk of a missed date. Most of the hours land at the start (registrations) and in January (W-2, W-3), with a short task each payday and each quarter.
The tax doesn't change. A nanny paid $700 a week for 52 weeks earns $36,400 in 2026; Social Security and Medicare total $5,569.20, half from you and half withheld from the nanny, whichever route you choose. A service fee is on top of that, not instead of it.
Should I use a household payroll service or do it myself?
Use a service if you want the filing done and the agency letters handled; do it yourself if you are comfortable with forms and want to keep the fee.
| Your situation | Usually the better fit |
|---|---|
| First time as an employer, little time | Full service (Poppins, HomePay, SurePayroll) |
| Your state has extra programs, such as paid family leave or disability insurance | Full service: more accounts and returns |
| You want the forms prepared but will file them | Software (NannyKeeper) |
| One employee, a fixed weekly wage, and you like spreadsheets | Do it yourself |
| You pay under the thresholds | Federal employment tax may not be due; state rules and minimum wage still apply |
You can also split the difference: use a service for the first year, to get registered and see one full cycle, then take it over once the calendar is familiar.
Doing household payroll yourself without mistakes
- Put every date in your calendar now: each state quarterly due date, February 1, 2027 for the W-2 and W-3, April 15, 2027 for Schedule H.
- Raise your own withholding or make estimated payments during the year. Publication 926 says paying enough during the year avoids owing the household tax, and a penalty, with your return.
- Give a pay stub every payday with year-to-date totals. The Department of Labor's Fact Sheet #79C lists the records household employers keep (hours each day and week, cash wages paid, any overtime), and the year-to-date column becomes the W-2.
- Keep employment tax records for at least 4 years after the return's due date or the date the tax was paid, whichever is later, as Publication 926 asks.
Where PayDocs fits
PayDocs is for the do-it-yourself route. It doesn't register you, move money, file returns or pay tax. It makes the documents: a pay stub each payday with hours, rate, each deduction and year-to-date totals, and Form W-2 employee copies at year end. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). Creating and previewing is free; the finished PDF is $4.99 once checkout opens, or less per document in packs of 4 or 12.
Prices for other companies are as their pages showed them on 8 October 2026 and can change; check before you sign up. This is general information, not tax advice.
Questions
How much does a household payroll service cost?
On the providers' pricing pages on 8 October 2026: SurePayroll household $39 a month, Poppins Payroll $49, Care.com HomePay $59 or $75. NannyKeeper software is $8 a month or $100 a year, and you file the returns.
Should I use a household payroll service or do it myself?
Use a service if you want registrations, quarterly filings and agency letters handled. Do it yourself if you are comfortable with forms and keep a calendar; the taxes are the same either way.
Does a payroll service lower my nanny taxes?
No. Social Security, Medicare and unemployment taxes are set by law and are the same either way. A service charges its fee on top, for doing the calculations and filings for you.
What are the 2026 household payroll deadlines?
Form W-2 to the employee and W-2 with W-3 to the Social Security Administration by February 1, 2027, and Schedule H with your 2026 Form 1040 by April 15, 2027. State unemployment returns follow your state's schedule, usually quarterly.
Sources
- IRS: Publication 926 (2026), Household Employer's Tax Guide
- U.S. Department of Labor: Fact Sheet #79C, Recordkeeping Requirements for Individuals, Families, or Households Who Employ Domestic Service Workers
- Poppins Payroll: Pricing (checked 2026-10-08)
- Care.com HomePay: Product and pricing (checked 2026-10-08)
- SurePayroll: Household payroll (checked 2026-10-08)
- NannyKeeper: Pricing (checked 2026-10-08)
Sources checked October 8, 2026. This article explains how pay documents work; it is not tax or legal advice.
