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Nest Payroll Review 2026: Is $42/mo Worth It?

NannyKeeper Team
February 20, 2026
Updated September 18, 2026
12 min read
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Nest Payroll is a newer player in nanny payroll, built specifically for household employers. At $42–$69/month, it's priced between the budget options and the premium services.

But there's a catch you should know about before signing up.

Verified accurate as of September 2026Sources: IRS Publication 926

What Is Nest Payroll?

Nest Payroll is a household-specific payroll service based in Palo Alto, California. Nest was designed from the ground up for families paying nannies, housekeepers, and caregivers; SurePayroll, by contrast, is a small-business payroll company (Paychex) with a dedicated Nanny & Household plan.

What's included:

  • Payroll processing and tax calculations for all 50 states + DC
  • State tax filings (they file these for you)
  • Quarterly state filings
  • W-2, W-3, and Schedule H preparation and filing
  • Federal 1040-ES estimated payment vouchers (Nest's own FAQ notes you make the federal payment directly to the IRS from your own bank account)
  • New hire reporting
  • Professional pay stubs
  • EIN and state employer tax ID registration
  • Concierge support via text or email

See what you'll owe

Use our free calculator to estimate your nanny tax costs for 2026.

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How Much Does Nest Payroll Cost in 2026?

Pricing verified against Nest's published rates, September 2026.

PlanMonthly PriceEmployees
Essentials$421 employee
Essentials Plus$492 employees
Professional$693–6 employees
FeeAmount
Setup feeNone
Year-end documents (while subscribed)Included
Year-end documents (if you cancel mid-year)$149
Catch-up wages (back taxes)$42/mo/employee + $149/year-end per tax year

That $149 cancellation fee is worth noting. If you subscribe in January and cancel in June, you'll still owe $149 for year-end filing (W-2 and Schedule H). While subscribed, it's included.

Nest offers a 14-day free trial for new accounts through their website.

Same paperwork, a fraction of the price

NannyKeeper calculates the same taxes, generates your W-2 and Schedule H, and reminds you before every deadline, from $10/mo. You file the forms yourself, about 15 minutes a quarter.

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What Nest Does Well

Built for households. Nest speaks your language. The interface uses terms like "nanny" and "caregiver," not "employee class" and "department code." Everything is geared toward families, not businesses.

Catch-up service for back taxes. If you've been paying under the table and want to get compliant, Nest will reconstruct your payroll records and file back taxes. They charge $42/month per employee per tax year plus $149 per year-end filing. Few services offer this. For a full breakdown of what catching up involves, see our guide to back nanny taxes.

Concierge support. Nest offers support via text message and email, and they have a reputation for being responsive. For families new to household employment, having someone you can text a quick question to is valuable.

EIN and state registration help. Nest helps you get your federal EIN and state employer tax IDs. If getting an EIN and navigating state registration feels overwhelming, Nest handles it for you.

Quick setup. Nest advertises a 5-minute onboarding process. They ask for the basics (your info, your nanny's info, pay details) and handle the rest.

Where Nest Falls Short

No traditional direct deposit. This is the biggest gap. Nest does not offer bank-to-bank ACH direct deposit. Instead, they integrate with:

  • Venmo: initiate payment from within the pay stub
  • Cash App: same as Venmo
  • Zelle: through your banking app
  • Personal check: old school but it works

For many families, this is fine. But if you want your nanny to receive a direct bank deposit on payday without opening Venmo, Nest can't do that. NannyKeeper, SurePayroll, Poppins, GTM, and HomePay all offer traditional direct deposit.

$149 cancellation year-end fee. If you cancel mid-year, Nest charges $149 for year-end filing. Understandable, since they still need to file your W-2 and Schedule H for the partial year, but it means you're not truly free to leave mid-year without a fee.

No employee portal. Nest doesn't offer a self-service portal for your nanny to view pay stubs, update their W-4, or access tax documents. Everything goes through you.

Smaller company. Nest is an independent company (developed by Felicity Inc.). They don't have the backing of Paychex (SurePayroll), Care.com (HomePay), or Spectrum Equity (Poppins). For most families this doesn't matter day-to-day, but it's worth considering for long-term reliability.

No bi-weekly pay period scheduling. Some users have reported that Nest doesn't support bi-weekly pay periods natively. If you pay your nanny every two weeks (rather than weekly, semi-monthly, or monthly), check with Nest before signing up.

Nest Payroll vs. NannyKeeper: Full Comparison

FeatureNest PayrollNannyKeeper
Monthly price$42$10 (Starter) / $18 (Plus)
Year-end feeIncluded (while subscribed)Included
Cancellation fee$149 (mid-year)None
Annual total~$504$100 (Starter) / $180 (Plus)
Direct depositNo (Venmo/Cash App/Zelle)Yes, $6/transfer (Plus) or $8/transfer (Starter), +0.8% over $1,000
Files taxes for youYesNo (you file; takes 15 min/quarter)
Email deadline remindersNot listedYes
Free payment trackingNo (14-day trial)Yes, free forever
W-2 generationIncludedIncluded
Schedule H generationIncludedIncluded
All 50 statesYesYes
Household-specificYesYes
Employee W-4 self-serviceNoYes (Plus)
Catch-up serviceYes ($42/mo + $149/yr)No
EIN registrationIncludedGuide provided

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The main tradeoff: Nest handles your state filings and offers a catch-up service for back taxes. NannyKeeper calculates everything, generates the forms, provides real bank-to-bank direct deposit, sends deadline reminders, and you submit the forms yourself (about 15 minutes per quarter). Worth noting that the federal piece looks similar on both: Nest prepares the 1040-ES vouchers but you pay the IRS from your own bank, which is the same step NannyKeeper walks you through. And because Schedule H is filed under your own SSN, the responsibility stays with you either way.

The savings: Like for like, switching from Nest to NannyKeeper saves $404 a year on Starter or $324 on Plus. That is the comparison with neither side using bank direct deposit, which Nest doesn't offer. If you want bank-to-bank direct deposit, only NannyKeeper has it, and the example below shows what it costs on top.

A real example

Say you pay your nanny $600/week in New York. The first table puts the two on the same footing: neither moves money bank-to-bank, so with either one you pay your nanny by Venmo, Zelle or check.

Nest Payroll (Essentials)NannyKeeper (Starter)
Annual subscription$504$100
Year-end documents$0 (included)$0 (included)
Files your state forms for youYesNo (you file, about 15 minutes a quarter)
Total cost$504$100
You save$404/year ($324 on Plus at $180)

If you want your nanny paid by bank-to-bank direct deposit, only one of the two offers it, so there is no Nest price to set against it. What it costs on NannyKeeper at $600/week:

Pay scheduleStarter ($8 per transfer)Plus ($6 per transfer)
Every other week (26 transfers of $1,200, each $200 over the $1,000 line)$250 ($9.60 × 26)$198 ($7.60 × 26)
Weekly (52 transfers of $600, no surcharge)$416 ($8 × 52)$312 ($6 × 52)
All-in with the subscription$350 biweekly, $516 weekly$378 biweekly, $492 weekly

So a family paying weekly on Starter spends $516 a year all-in, $12 more than Nest's $504. The difference is what the two figures buy: $516 includes bank-to-bank direct deposit on every payday, and $504 can't include it at all.

Nest Payroll vs. Other Services

FeatureNestSurePayrollPoppinsGTMHomePayNannyKeeper
Monthly price$42$39$49$70$59-$75$10-$18
Annual total~$504$468~$588~$840$708-$900$100-$180
Direct depositNoYesYesYesYesYes
Files for youYesYesYesYesYesNo
Household-specificYesYes (Nanny & Household plan)YesYesYesYes
Catch-up serviceYesNot listedYes (extra fee)Not listedNot listedNo
Filing guaranteeNoPenalty onlyPenalty onlyPenalty onlyPenalty onlyN/A (you review and file it yourself)

SurePayroll prices are its Nanny & Household plan, one employee included.

Nest's "No" on direct deposit means no bank-to-bank ACH; Nest pays employees through Venmo, Cash App or Zelle, or by check. Its "No" on the guarantee row means Nest does not advertise a filing guarantee on its pricing page or homepage, not that it has disclaimed one.

On the guarantee row: the four full-service guarantees above each reimburse a penalty caused by the provider's own error, and none of them covers the tax itself. Schedule H is filed under your own Social Security number, so the IRS holds you responsible whichever service pressed submit. NannyKeeper shows N/A because you see every number and file the return yourself, so there's no third-party error to insure against.

Nest sits in an awkward middle ground: more expensive than SurePayroll, and it pays your nanny through Venmo, Cash App or Zelle rather than bank-to-bank direct deposit. The catch-up service is a real differentiator if you need it, though it is an add-on rather than a bonus: at $42 per month per employee with a 3-month minimum, plus $149 for each year-end, catching up a single prior year starts at $275 on top of the subscription. For everything else, other options offer more for less.

Who Should Use Nest Payroll?

Nest makes sense if:

  • You've been paying under the table and need the catch-up service specifically
  • You and your nanny both use Venmo or Cash App and don't need bank-to-bank direct deposit
  • You want a household-specific full-service option cheaper than Poppins
  • Text-based support appeals to you

Who Should Skip Nest

You probably don't need Nest if:

  • You want traditional direct deposit. Nest simply doesn't offer it
  • You're comfortable filing forms yourself and would rather keep the $404 a year the subscription saves ($324 on Plus)
  • The $149 mid-year cancellation fee bothers you
  • You want a free tier to try before committing
  • You'd rather pay less with a more established provider

So Is Nest Payroll Worth It?

Nest is a solid household-specific service with one real standout (catch-up filing) and one significant gap (no direct deposit). At $504/year, you're getting full-service filing with a purpose-built interface, but you can't pay your nanny via direct bank deposit.

If you need the catch-up service for back taxes, Nest is one of the few options that specializes in this, and that alone might justify the price. Budget for it separately, though: one prior year costs at least $275 on top of the subscription ($42 per month per employee for a minimum of 3 months, plus the $149 year-end fee).

For everyone else, NannyKeeper at $100 to $180 a year saves you $324 to $404 on the subscription, adds bank-to-bank direct deposit as a per-transfer option Nest doesn't have (the example above prices it), and provides deadline reminders and household-specific guidance. The trade-off: you file the forms yourself, about 15 minutes per quarter.

Compare all nanny payroll services →

Read our SurePayroll review →

Read our HomePay review →

Read our GTM Payroll review →

Read our Poppins Payroll review →

FAQ

How much does Nest Payroll cost per year?

Nest Payroll costs $504/year for one employee ($42/month) or $588/year for two employees ($49/month). Year-end documents are included while you're subscribed. If you cancel mid-year, there's a $149 fee for year-end filing.

Does Nest Payroll offer direct deposit?

No. Nest does not offer traditional bank-to-bank ACH direct deposit. They integrate with Venmo, Cash App, and Zelle as payment methods, or you can pay by personal check. If direct deposit is important to you, NannyKeeper, SurePayroll, Poppins, GTM, and HomePay all offer it.

Can Nest Payroll help with back taxes?

Yes, this is Nest's standout feature. Their catch-up service reconstructs your payroll records and files back taxes at $42/month per employee per tax year plus $149 per year-end filing (minimum 3 months). If you've been paying under the table and want to get compliant, this is one of the few services that specializes in it.

Is Nest Payroll legit?

Yes. Nest Payroll is a legitimate household payroll service based in Palo Alto, California. They file taxes on your behalf, handle W-2 and Schedule H preparation, and cover all 50 states plus DC. They're a smaller, independent company, not backed by a major payroll provider like SurePayroll (Paychex) or HomePay (Care.com).

What's the cheapest nanny payroll service?

NannyKeeper starts at $10/month ($100/year on annual billing) with no year-end fees. Direct deposit is available at $6/transfer (Plus) or $8/transfer (Starter), plus 0.8% on amounts over $1,000 per transfer. Free payment tracking is available with no subscription. If you want someone else to file for you, full-service providers run $39 to $75 a month; SurePayroll is $39/month for one nanny ($468/year on regular pricing, all forms included).

Sources & Verification
Cited Sources
Verified

September 2026

Content accuracy confirmed

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws vary by jurisdiction and change frequently. Consult a qualified tax professional for advice specific to your situation.

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