Over the past year and a half, many parents found themselves suddenly seeking nanny services, often with little time to prepare or room to research. And while many might have magically found their perfect Mary Poppins, the truth is nannies are employees, and there is a lot to learn regarding compensation and taxes.
With the onset of COVID-19, more and more home-based employers and employees have recognized that paying under the table means forgoing benefits such as unemployment or leave, which are often needed during uncertain times. Plus, there are other benefits to paying your payroll by the books: social security, medicare, improving credit, and building an employment history, to name just a few!
If you pay a nanny more than $2300 in 2021, the IRS considers you an employer. To complicate matters, the rules for household employers are different than other small businesses, and navigating those specifics often gets dicey. Fortunately, Poppins Payroll, a delightful service recently launched in Portland, eliminates the overwhelm that comes with household employment. With their comprehensive payroll solution, Poppins Payroll serves as the “spoonful of sugar” that household employers need.
Simple Management of Payments, Tax Returns, and More
Do your eyes glaze over as soon as someone says the word “withholdings”? Same, same. Sorting out the magic numbers and checking the right boxes is a task better left to the experts, and thankfully Poppins Payroll knows what they are doing.
As a full-service solution, they make the paperwork of payroll effortless, and their all-inclusive service is applicable to ANY household employee such as housekeepers, caregivers, personal assistants, pet sitters, etc, as well as nannies (or nanny shares).
In a 10-minute sign-up process, Poppins Payroll sets you up as an employer and obtains a federal identification number. They file the required new-hire paperwork with state agencies and city municipalities. From there, Poppins Payroll handles all the specifics that come with ongoing employee payroll: withholding amounts, payment deposits, and regular tax filings, as well as employee benefits such as social security, medicare, and unemployment.
Never Miss a Tax Change or Update
Busy parents have a lot better things to do than to spend their time researching tax updates and laws. Poppins Payroll tracks tax deadlines and rule changes to ensure your taxes are completed on time and correctly. Through e-filing, your payroll documents are securely stored in the their digital library for five years, providing you website access should you ever need a paper copy for your records.
Employee Payroll at a Low Cost
As an example, if you are filing nanny taxes (or other household employees) in the state of Oregon, you need to do all of the following: register, report your employees, pay deposits (withholding Social Security, Medicare, and income taxes per the employee’s W4 and M-4 elections), make employer contributions to Social Security and Medicare and unemployment funds, submit proper paperwork quarterly, and provide year-end tax forms including a W-2, provide info the Social Security Administration, file State reconciliations, and prepare a schedule H.
Did all of that make your head spin? The IRS estimates that it takes an employer 60+ hours to sort out these details (and others!), and most payroll companies charge exorbitant fees because they know what a nightmare payroll is for employers. Poppins Payroll takes care of it all for only $45 per month! There are no hidden fees and no minimum contract period. And, the first month is FREE!
Made by Moms
We love supporting mom-owned businesses, and Poppins Payroll is no exception. Founded by a Certified Public Accountant and a licensed attorney, their goal was to help out other families by making household payroll simple and affordable.
With plans to expand across the country, Poppins Payroll is currently available in 15 states, and fortunately Oregon and Washington are on the list!
Find out for yourself how Poppins Payroll lives up to its motto: “Nanny taxes made merry!” Check out their website for more details on how they can help your family, or visit their helpful Frequently Asked Questions page that covers a lot of the fundamentals of how Poppins Payroll works.