The Nanny Tax in California

California Nanny Taxes

Find the specifics of nanny taxes in California

California has some different rules regarding nannies and other household employees. Learn about all the specifics of paying your nanny and the nanny tax in California. For a concise description see below. Or you can download the California Household Employer Guide.

California Minimum Wage

When negotiating wages with your nanny you must make sure you are meeting the minimum wage standards for California:

  • Current rate: $8.00 per hour
  • After July 1, 2014: $9.00 per hour
  • After January 1, 2016: 10.00 per hour

The California Payroll Taxes

Tax Taxable Wages Per Year Tax Rate Maximum Tax
Unemployment Insurance
First $7,000
3.4% for two to three years.Then the tax rate is calculated annually based on each your previous UI claims.
$238 at the 3.4% rate.
Employment Training Tax
First $7,000
0.1% $7
State Disability Insurance First $100,880 (2013)First $101,636 (2014) 1% (for 2013 and 2014) $1,008.80 (2013)$1,016.36 (2014)
CA Personal Income Tax All wages. Employers are not required to withhold PIT from employees. Varies No maximum

Wage thresholds for California state nanny (payroll) taxes

Your state obligations begin once your nanny is paid cash wages of $750 or more in a calendar quarter. Non-cash wages (such as food or lodging) are not counted in meeting the $750 cash wage limit, but once that threshold has been reached those non-cash wages are included when calculating the actual tax owed. Upon reaching the $750 threshold your are subject to State Disability Insurance and you must register with the Employment Development Department.

Upon reaching $1,000 in cash wages in a quarter, you are additionally subject to Unemployment Insurance and the Employment Training Tax.

If You Pay (in a Quarter)
Then
$750 to $999.99
Your must register and withhold State Disability Insurance
$1,000 or more
You must register and withhold SDI. In addition, pay for Unemployment Insurance and the Employment Training Tax.

New hire reporting deadline is 15 days

After your nanny is paid cash wages of $750, you are required to register with the Employment Development Department by submitting a Registration Form for Employers of Household Workers within 15 days. You can register online here.

Determine if you are a Annual or Quarterly Household Employer

This distinction between Annual or Quarterly involves how often you have to report wages and pay taxes.

Your are an Annual Household Employer if:

  • Annual wages are less than $20,000 and
  • Your nanny elects to be a Annual Household Employee

You are a Quarterly Household Employer if:

  • Annual wages are over $20,000 or
  • Your nanny does not elect to be a Annual Household Employee

Differing Requirements

Annual Household Employers must:

  • Report wages quarterly with form DE 3BHW –  Quarterly Report of Wages and Withholdings
  • Pay all taxes yearly with form DE 3HW – Annual Payroll Tax Return

Quarterly Household Employers must:

  • Report wages ever quarter with Quarterly Contribution Return and Report of Wages forms both DE 9 and DE 9C
  • Pay all taxes each quarter with Payroll Tax Deposit form DE 88

Reporting Deadlines

Reporting Due Dates for Quarterly Filings
Report Covering
Filing Due Dates
Delinquent if Not Filed By
January, February, March
April 1
April 30
April, May, June
July 1
July 31
July, August, September
October 1
October 31
October, November, December
January 1
January 31

Annual Filings are due by January 31st each year.

California Workers’ Compensation Insurance

California does require household employers to purchase worker’s compensation insurance. You can find out more information from the State’s Division of Workers’ Compensation website.

California Nanny Tax  Calculator

To get an estimate of what your payroll taxes will be in California, use the calculator below.


Weekly gross pay: $: Number of paid weeks:
Pay adjustment: $: State:
Filing Status: Allowances:
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