All states · Updated for 2026
How to pay a nanny in California
Everything a California family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- California unemployment tax: register with California Employment Development Department (EDD) after register within 15 days of paying $750 or more in cash wages in a calendar quarter (sdi applies from $750; ui and ett apply once quarterly cash wages reach $1,000); new employers pay 3.40% on the first $7,000.00 of wages; file DE 9 + DE 9C quarterly (or DE 3BHW quarterly wage report + DE 3HW annual return for household employers electing annual filing via DE 89) quarterly.
- California income tax: withholding is voluntary for household employers (form DE 4).
- State programs: CA State Disability Insurance / Paid Family Leave (SDI) (1.30% employee); CA Employment Training Tax (ETT) (0.00% employee, 0.10% employer).
- New hire report: within 20 days of their start date.
- Minimum wage: $16.90/hour. Overtime: 1.5× over 45 h/week or 9 h/day for live-out nannies.
- Paid sick leave: required (Healthy Workplaces, Healthy Families Act: 1 hour per 30 hours worked (or front-load); at least 40 hours / 5 days per year available for use since January 1, 2024; accrual/carryover may be capped at 80 hours / 10 days. Covers employees who work 30+ days in a year in California, including household employees and IHSS providers.).
- Workers' compensation: Labor Code 3351(d) makes household workers (including child care) employees for workers' compensation; 3352(a)(8) excludes only workers employed (or contracted) for less than 52 hours or for no more than $100 in wages in the 90 days before injury. Coverage is commonly provided through a homeowner's/renter's policy endorsement—confirm with your insurer.
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and DE 4.
- File the California new-hire report within 20 days at the state site.
- Register with California Employment Development Department (EDD) once you cross register within 15 days of paying $750 or more in cash wages in a calendar quarter (sdi applies from $750; ui and ett apply once quarterly cash wages reach $1,000) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65% plus state program premiums, give a pay stub.
- Each quarter: file DE 9 + DE 9C quarterly (or DE 3BHW quarterly wage report + DE 3HW annual return for household employers electing annual filing via DE 89). Quarterly DE 9/DE 9C (or DE 3BHW) due the first day of the month after the quarter and delinquent after the last day of that month (Apr 30, Jul 31, Nov 2, Feb 1/2). New-employer UI rate 3.4% for 2–3 years; ETT 0.1% on the same $7,000 base. Household employers expecting $20,000 or less in annual wages may elect annual payment (DE 3HW due January 31).
- January: W-2 to your nanny, W-2/W-3 to the SSA, DE 3HW (annual household employers only; quarterly filers reconcile on DE 9) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free California nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in California?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. California unemployment tax applies after register within 15 days of paying $750 or more in cash wages in a calendar quarter (sdi applies from $750; ui and ett apply once quarterly cash wages reach $1,000).
Do I withhold California income tax from my nanny?
California does not require household employers to withhold state income tax; you can withhold voluntarily using DE 4 if your nanny asks.
What forms do I file in California?
DE 9 + DE 9C quarterly (or DE 3BHW quarterly wage report + DE 3HW annual return for household employers electing annual filing via DE 89) quarterly with California Employment Development Department (EDD), DE 3HW (annual household employers only; quarterly filers reconcile on DE 9) annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in California?
Live-out nannies get 1.5× over 45 hours a week or 9 hours a day. Live-in nannies are also owed overtime in California. Defaults encode the Domestic Worker Bill of Rights rule for personal attendants (nannies, caregivers): 1.5× after 9 hours/day or 45 hours/week. Domestic workers who are NOT personal attendants follow Wage Order 15: live-out 1.5× after 8/day or 40/week (and first 8 hours on the 7th consecutive day), 2× after 12/day or after 8 on the 7th day; live-in 1.5× after 9/day and for up to 9 hours on the 6th/7th day, 2× beyond 9 on those days. Many cities have higher local minimum wages.
What is the minimum wage for a nanny in California?
$16.90 per hour in 2026 (schedule: $16.50 from 2025-01-01, $16.90 from 2026-01-01).
Pay your California nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with DE 9 + DE 9C quarterly (or DE 3BHW quarterly wage report + DE 3HW annual return for household employers electing annual filing via DE 89) pre-filled. 14-day free trial, no card needed.
Start free trialSources: EDD, California Withholding Schedules for 2026 — Method B (Exact Calculation Method), Tables 1–28; EDD, Rates and Withholding (2026 UI, ETT, SDI rates and wage limits); EDD, Household Employer (registration thresholds, DE 3HW/DE 3BHW annual option, PIT voluntary); EDD, Payroll Tax Due Dates Calendar 2026; EDD, New Hire Reporting (DE 34); DIR / Labor Commissioner news release 2025-118: minimum wage $16.90 on January 1, 2026; DIR, Domestic Worker Bill of Rights FAQ (personal attendant and Wage Order 15 overtime); DIR, Paid Sick Leave FAQ (Healthy Workplaces, Healthy Families Act); California Labor Code §§ 3351(d) and 3352(a)(8) (residential/household employee coverage). Rules for 2026. General information, not tax or legal advice.