At Charlotte’s Best Nanny Agency, we take pride in providing a comprehensive placement experience, and are dedicated to setting up each placement for success. An important element of setting a placement up for success is establishing a process for your family to establish legal Nanny pay or Domestic pay. Once your family hires a candidate you are their direct employer, and are responsible for managing their employment and paying them legally. Our team has found navigating legal pay can be the most daunting task when a family hires an Nanny or Domestic worker. Charlotte’s Best Nanny Agency is here to help! Our team provides the tools and resources to your family to assist you in smoothly navigating payroll, and legally paying your Nanny or Domestic employee. We have required our clients to pay legal and fair wages, and provide standard nanny benefits for over 10 years. Our team provides the tools and resources to make setting up legal nanny pay a breeze.
To legally pay a Nanny or Domestic employee, they must be paid hourly by w-2 payment. 1099s and Salaries are illegal in the Nanny and Domestic industry in the USA. Any hours worked over 40 hours in a week, must be paid at a over time rate of 1.5 times the regular rate of pay. Charlotte’s Best Nanny Agency™ requires all families to pay legally and abide by all Household Employer laws in the country.
Most of our families pay their Nanny or Domestic employee through a professional payroll service, or have their accountant manage paying their employee legally by W-2 payment. We have partnered with GTM Payroll Services and Homework Solutions who specialize in Nanny and Domestic Payroll. You are also welcome to research any other payroll companies you feel might fit your family’s unique needs. When hiring a new employee and setting up payroll, we always recommend that you reach out to a payroll service like GTM, your CPA or accountant, or consult your lawyer to ensure you are making the right choice for your family.
While there are numerous payroll services your family can utilize, we recommend the following payroll services, as they specialize in offering comprehensive Nanny and Domestic payroll services to clients. We encourage you to call both of the companies we recommend, and pick the service that best fits your family’s needs. Your family is not required to use one of these companies and can use a payroll company of your own choosing, however we do highly recommend the companies below.
GTM Payroll and HR
Charlotte’s Best Nanny Agency™ has partnered with GTM Payroll and HR since 2012. GTM has helped hundreds of our clients establish payroll for their employees. GTM Payroll and HR has been a trusted source in legally paying Nanny and Domestic employees since 1991. The team at GTM Payroll and HR are well respected members of the payroll industry, and are members of many associations including the INA (International Nanny Association), APNA (Association of Premier Nanny Agencies), and the American Payroll Association. The goal of GTM’s payroll service is to make Nanny and Domestic payroll processing easy for families. Therefore, being able to spend more quality family time, rather than spending the time figuring out payroll and taxes. The team at GTM Payroll and HR would be happy to do a FREE consultation with your family. During this consultation, they will give a brief overview of their services, and answer any questions you may have.
GTM has provided a dedicated website to clients who work with Charlotte’s Best Nanny Agency™ and families in our community. Visit the link below to learn more about legally paying Nanny and Domestic employees, and setting up payroll for success.
GTM currently (2023) charges $70.00 a month to process payroll, no matter what the payroll frequency is per month.
Additionally, we recommend Homework Solutions. Homework Solutions has specialized in providing household employers and their tax preparers real solutions for Nanny and Domestic tax compliance since 1993 (25 years). They are nationally recognized experts in the field of household employment taxes. The Homework Solutions team has provided a concierge quality of service over the years to families in all 50 states. They are regularly consulted by media such as the New York Times and Wall Street Journal as experts in the industry. The team at Homework solutions would be happy to do a FREE consultation with your family to go over their service in more detail, and answer any questions you may have. Homework Solutions current fee options are listed here https://www.homeworksolutions.com/what-we-do/service-plans-and-pricing/
Dedicated website for clients of Charlotte’s Best Nanny Agency and families in the community: https://www.homeworksolutions.com/partners/charlottes-best-nanny-agency/
Below you will find a link to GTM Payroll and HR’s handy payroll calculator. This is an awesome tool to use that will show your family what the estimated payroll tax liability, and overall costs related to legally employing your Nanny or Domestic employee.
Banking Hours is Illegal
This is not only illegal, but it is also considered to be disrespectful of your employee’s time. It can take a negative toll on the employee/family relationship, and make the employee feel as if the employer does not value the employee’s time. Federal laws require that your household employee is paid for each hour worked in a 7-day time frame, and paying overtime for hours worked over 40 hours in a 7-day period (Monday – Sunday). These laws were designed to keep employers from moving hours around to avoid overtime pay. For example, banking hours is where your family would decide to carry hours forward into another work week. This is not allowed and an illegal practice according to the laws of the country.
Please read more about banking hours here: https://info.homeworksolutions.com/blog/can-we-legally-bank-hours-for-my-nanny-or-caregiver
While it is not required in NC for you to have a worker’s compensation policy when employing one person, it is highly recommended. We suggest reaching out to one of the payroll services above, or your insurance agent to help your family establish a worker’s compensation policy. This is a policy that will cover costs if a nanny and domestic employee gets hurt on the job. Do not rely on your homeowners insurance to cover costs in this instance, they will not cover these claims if they arise.
Insurance and Benefit Options
Both GTM and Homework Solutions can help your family navigate providing insurance and benefit options to your employee, outside of the standard nanny benefits. These benefits would include health insurance options, dental and vision insurance, worker’s compensation, and a 401k. Provided below are links to the insurance and benefit options each payroll company provides.
Charlotte’s Best Nanny Agency
1244 East Blvd, Suite 2D, Charlotte NC 28203