Cheapest: do it yourself. You will need federal and state employer id numbers, to register with MD for unemployment insurance and state withholding, and worker's comp insurance.

Easiest: sign up with a company like Breedlove which will do it all for you for a fee.

We are hiring a nanny for the first time and need suggestions on how to handle taxes etc. (we are in MD) What is the easier and cheapest way to handle that? Thanks.