We are considering transitioning from a CPA to a nanny payroll service to facilitate our nanny's payroll and taxes. We've been doing it with the help of our CPA for four years and it's a pain. I have some questions about payroll services:
How are hours tracked - does the employer track them and provide to the service? Does the nanny go online and submit her weekly hours? Does the payroll service automatically calculate overtime for any hours over 40 or must the employer contact the service to acdjust for overtime? Are taxes completely taken care of (calculated and paperwork generated) by the service? If you switched from doing nanny payroll yourself or with the help of a CPA to a service are you glad you did? We are just starting to reach out to various services but I wanted to ask these questions here to get folks feedback. |
1. You need to track the hours and submit them to the payroll service. I know with GTM Payroll you can set standard hours for the pay period and it'll automatically process each pay period based on your standard hours. But if the hours differ, you'll need to submit.
2. The payroll service should calculate for overtime but confirm that. 3. Depending on what level of service you select, taxes should be remitted on your behalf on a quarterly basis. 4. Look into their year-end service. They should provide W-2, W-3 and Schedule H. There may be an additional charge but could be worth it. |