8. Pay the nanny either with direct deposit or by check.
9. Payroll needs to be set up and provisions made to pay Social Security, Medicare, FUTA and other payroll taxes. Keep track of tax deductions, medical benefits and other insurance. Mistakes can be costly: Failure to pay the IRS nanny taxes can result in back taxes, penalties, interest and fines up to $25,000.
10. Set up an easy payroll system and pay your nanny according to federal and state labor laws. Consider working with an online payroll provider like SurePayroll to manage the pay, tax and filing to ensure compliance.
SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. Whether a business has 1, 10, or 100 employees, SurePayroll delivers peace of mind by combining innovative, industry-leading technology and personalized support from an award-winning, U.S.-based customer care team. SurePayroll also provides private-label and co-branded services for accountants and banking partners as well as offering efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. SurePayroll is a wholly owned subsidiary of Paychex. For more information, visit SurePayroll.com, Twitter, Google+, LinkedIn, and Facebook.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 570,000 payroll clients as of May 31, 2013. For more information about Paychex and Paychex products, visit paychex.com.
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