Do I Need Nanny Pay Software to Pay Household Staff Legally?

Nanny pay software is an essential addition to your household employer toolkit. Home care is expensive, whether you pay workers to mow the lawn, watch the kids, or help an elderly parent. Some people prefer to handle payments “under the table” to save some time. In some cases, this affords the ability to pay the nanny a more competitive salary. Still, the advantages of paying staff legally far outweigh the benefits that come with cutting corners.

Reporting nanny wages and paying requisite payroll taxes is the law in the United States. Luckily, affordable programs exist to help make the process easier. If you’re in need of support for paying household employees, Advanced Micro Solutions can help.



Why Legal Payment Matters for Nanny Pay Software

Paying your nanny legally is important. Household employers should also legally pay other employees, like cleaning staff and home health aides. It might seem like a lot of trouble to pay just a couple of people, but the effort is worth the legal protection.

If caught and audited, people who don’t properly pay household workers will need to pay all the taxes they owe. Household employers may be subject to failure-to-pay and failure-to-fine penalties, which can amount to 50% of the total tax due. Additionally, folks who pay their nanny illegally may face both civil and criminal penalties, like tax fraud charges.

Severe penalties are not common, but interest on back paid taxes can double the amount owed in just a handful of years. For this reason, knowledgeable household employers use a nanny payroll software to distribute payment legally and efficiently. For most people, the Advanced Micro Solutions W-2/1099 Forms Filer, which costs $84, is worth avoiding potential liability.

Importantly, your nanny may also be at risk if you are caught paying “under the table.” Protect yourself and household employees by correctly filing nanny taxes with a semi-automated payroll system.


Get the Nanny Pay Software You Need with AMS

Household employers may be audited, or get “caught” illegally paying household employees, if a relationship ends badly or the nanny files for unemployment insurance. Maintaining a positive relationship with household employees is key. Software tools from Advanced Micro Solutions can make that easier.

For example, paying your household employees legally and on time facilitates mutual respect within a relationship. You want to ensure the people you employ will be taken care of once your professional relationship ends. Guaranteeing that you pay proper payroll taxes and distribute the required W-2 and 1099 forms will set both you and your employees up for future financial security.



The base software from AMS, our W-2/1099 Forms Filer, is an excellent investment for household employers. If you want to ensure payroll taxes are paid correctly, consider investing in AMS Payroll, our accounting and payroll software. Even if you only employ one or two workers, the nominal cost of nanny pay software is worth the security that comes with knowing you’re unlikely to face penalties. If you’re interested in taking AMS for a test drive, check out our free 1099-etc Demo. Call us at 800-536-1099 with questions.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.