If you're paying $75/month for HomePay and wondering whether that $1,000/year is really necessary, you're not the first person to ask.
Switching payroll services sounds like a headache, but it's actually straightforward — grab your records, cancel, set up the new service, done. Below: what to download from HomePay before you leave, how to cancel, and how to get running on NannyKeeper.
Before You Cancel: Grab Your Records
Before you call HomePay, download everything you might need. Once your account is closed, getting this information back is a pain.
Download these from your HomePay account:
- Year-to-date payroll reports (every pay period so far this year)
- Prior year W-2s and Schedule H documents
- Quarterly tax filing confirmations
- Your employee's tax withholding details (federal and state)
- Any state tax registration numbers
You'll also want to note:
| Info You'll Need | Where to Find It |
|---|---|
| Employee's gross wages YTD | Payroll summary report |
| Federal income tax withheld YTD | Payroll summary report |
| Social Security + Medicare withheld YTD | Payroll summary report |
| State income tax withheld YTD | Payroll summary report |
| Your EIN | Any tax filing confirmation |
| State tax account numbers | State registration documents |
Write all of this down or save the PDFs. You'll enter YTD figures into NannyKeeper so your year-end W-2 reflects the full year accurately.
How to Cancel HomePay
HomePay requires you to cancel by phone or in writing. There's no self-service cancel button.
Call: 1-888-273-3356
Or write to them via email or mail. Keep a copy of whatever you send.
A few things to know:
The 6-month guarantee. If you've been with HomePay for less than six months, ask about their happiness guarantee. You may be eligible for a refund.
Quarterly billing. HomePay bills $225/quarter. If you cancel mid-quarter, ask whether you'll receive a prorated refund or if the charge covers the full quarter. Get this confirmed in writing.
Ask about outstanding filings. If HomePay has already started preparing your current quarter's tax filings, confirm whether they'll complete them or if you need to handle the current quarter yourself.
Hold times. Some customers report long wait times on the phone. Call early in the day if you can, and have your account number ready.
When to Make the Switch
The cleanest transition is at the start of a quarter:
| Quarter Start | Switch By |
|---|---|
| Q2: April 1 | End of March |
| Q3: July 1 | End of June |
| Q4: October 1 | End of September |
| Q1 (next year): January 1 | End of December |
That said, you can switch at any point. NannyKeeper handles mid-quarter transitions fine. It's just easier to have HomePay finish out a quarter's filings before you take over.
Setting Up NannyKeeper
Once you've downloaded your records and canceled HomePay, getting started takes about 10 minutes.
Create your account. Sign up here and add your basic info: name, address, EIN.
Add your employee. Enter their name, address, pay rate, and schedule. If they need to update their W-4 withholdings, NannyKeeper's employee portal lets them do it themselves (available on the Plus plan).
Enter year-to-date totals. This is the important step. You'll enter the YTD wages and tax withholdings from your HomePay records. This ensures your W-2 at year-end covers January through December, not just the months on NannyKeeper.
Set up direct deposit (optional). Connect your bank account in your NannyKeeper settings. Direct deposit runs through Stripe and costs $6/transfer on Plus or $8/transfer on Starter.
Run your first payroll. NannyKeeper calculates federal, state, and local taxes for all 50 states. You'll see a breakdown before you confirm. Use our calculator to preview what your taxes look like.
What Changes (and What Doesn't)
Switching from HomePay to NannyKeeper means one real change: you file your own tax forms. Everything else stays the same or gets cheaper.
| HomePay | NannyKeeper | |
|---|---|---|
| Tax calculations | Automatic | Automatic |
| Pay stubs | Yes | Yes |
| W-2 generation | +$100 fee | Included |
| Schedule H generation | +$100 fee | Included |
| Deadline reminders | Yes | Yes |
| All 50 states | Yes | Yes |
| Filing taxes for you | Yes | No |
| Annual cost | ~$1,000 | $120-$216 |
Filing is the easy part. Each quarter, NannyKeeper emails you a reminder before the deadline. You log into the IRS website (and your state's site if applicable), enter the numbers NannyKeeper calculated, and submit. Most families finish in 15 minutes.
If you're in California, New York, or Texas, NannyKeeper knows your state's specific requirements and includes them in your calculations automatically.
See what you'll owe
Use our free calculator to estimate your nanny tax costs for 2026.
Mid-Year Switching: How It Works
Switching mid-year is completely fine from a tax perspective. Your W-2 reports total wages for the full calendar year, regardless of which payroll service calculated each paycheck.
The key is entering accurate YTD totals when you set up NannyKeeper. Those YTD figures carry forward so that:
- Quarterly tax payments are calculated correctly for the remainder of the year
- Your employee's W-2 reflects all wages from January 1 through December 31
- Social Security wage limits are tracked properly across the full year
You won't file duplicate taxes or miss anything, as long as your YTD numbers from HomePay are accurate.
What You'll Save
The math is straightforward:
| Annual Cost | |
|---|---|
| HomePay | ~$1,000 |
| NannyKeeper Starter ($10/mo) | $120 |
| NannyKeeper Plus ($18/mo) | $216 |
| Your savings (Starter) | $880/year |
| Your savings (Plus) | $784/year |
If you use direct deposit, add $6-$8 per transfer. Even with weekly direct deposit on the Plus plan ($6 x 52 = $312), your total annual cost is $528. That still saves you $472/year compared to HomePay.
Ready to simplify nanny taxes?
NannyKeeper handles the calculations, deadlines, and paperwork so you can focus on your family.
FAQ
Can I switch from HomePay mid-year?
Yes. You can switch at any point during the year. Enter your year-to-date payroll figures from HomePay into NannyKeeper, and your W-2 will cover the full calendar year. Switching at the start of a quarter (April 1, July 1, October 1) makes the transition cleanest.
Will my nanny's pay be affected?
No. Your nanny's gross and net pay stays exactly the same. The only thing that changes is which service calculates the taxes and generates the pay stubs. They won't notice a difference.
Do I need a new EIN?
No. Your EIN stays the same. You'll enter it when setting up NannyKeeper. If you don't have your EIN handy, check any previous tax filing or W-2 from HomePay.
What if HomePay already filed my quarterly taxes?
That's fine. Just make sure you know which quarter they completed so you don't double-file. Start your NannyKeeper payroll from the next pay period after HomePay's last one. Your YTD totals will keep everything in sync.
Does NannyKeeper file taxes for me?
No. NannyKeeper calculates your taxes, generates all the forms (W-2, Schedule H, pay stubs), and sends you deadline reminders. You file the forms yourself on the IRS and state websites. It takes about 15 minutes per quarter. For most families, that's a reasonable tradeoff to save $800+/year.
Read our full HomePay review →