Paying a household employee with nanny payroll software involves more than just cutting their paycheck. Payroll software will help you to pay nanny taxes and factor in all applicable insurance fees. The bottom line is that most of the household employers who hire household workers need support when tax season comes around each year. Whether you employ one household employee or half a dozen, manage payroll effectively with a flexible and comprehensive program.
Enter payroll and non-employee compensation, along with certain other 1099 information, by check throughout the year with Advanced Micro Solutions Payroll Software. AMS Payroll is a program that supports “live” or after-the-fact payroll across all 50 states, plus the District of Columbia and Puerto Rico. It is an add-on module to our base W2/1099 Forms Filer system.
Benefits of Using Nanny Payroll Software
Don’t feel overwhelmed or overburdened when it comes time to run payroll for your household employees. Using software for these workers can help you with:
Compliance – Prepare, submit, and pay any of your quarterly and annual federal, state, and local taxes on time with comprehensive software. Maintain total compliance with the Internal Revenue Service and state tax departments when you use software for household workers. Reliable software can offer you up-to-date resources like state and federal tax tables that a household employer can review as often as needed.
Organization – Miss fewer deadlines with the right payroll software. Handle the nanny payroll with a system that reduces how much time and resources that you spend on preparing for an Internal Revenue Service audit. A centralized system makes it easier for an employer to find exactly which forms they need as they need them. Prevent getting sued when you stay organized with your forms and documentation.
Saving Money and Resources – A household employer may choose to manage their own taxes rather than hiring an accountant if that is not an affordable option. There is a distinct likelihood that getting payroll software will be a worthwhile long-term investment. Save time when you do not have to correct as many forms. Use nanny payroll software to reduce the chances of ordering more tax prep forms than you need from the Internal Revenue Service.
Retaining Household Employees – Every employee wants to know where their next payroll check is coming from and that they will receive it on time to maintain their life. Using a payroll system for your household employees is generally a better long-term solution than paying an employee under the table and risking complications later with the Internal Revenue Service.
Are Nanny Taxes that Important?
The short answer is, yes. It is fairly easy to get caught when you do not pay nanny taxes. All it takes is one of your household employees filing an unemployment claim. That should be the crucial reminder to use nanny payroll software to ensure there is a record of employment taxes paid for each employee. Avoid stiff penalties, particularly if you overlook or ignore covering workers compensation insurance for any of your employees.
Create a positive and professional relationship with each of your household employees when you utilize payroll software. Comply with all rules and regulations while saving time when you automate as much of the process as possible. Paying household employees above-board will often lead you to employing the most-qualified workers as well.
Get Started with AMS Payroll
AMS Payroll and our full catalogue of products are versatile and fully integrated for the greatest ease-of-use. Household employers, other small businesses, and even accountants can pick and choose all of the features that make sense for their nanny payroll needs. AMS Payroll provides users with numerous paycheck and direct deposit options. Automate the calculations to ensure better accuracy across the board.
Download our free 1099-etc Demo software today. Get started without worrying about possibly breaking your budget and enter your real data to see whether the system can handle what you need from it. There are five other optional add-on modules aside from AMS Payroll. These are: E-File, Software Generated Forms, Forms Filer Plus, Affordable Care Act Filer, and a 1042-S Filer. Pair AMS Payroll with the E-Filer to electronically file your employees’ year-end W2 and 1099 forms to the Internal Revenue Service or the Social Security Administration.