at last, household payroll made easy online

Choose our affordable online service or use our free resources to do-it-yourself. Payroll taxation, both U.S. federal and state, for your California nanny, housekeeper, maid, cook, babysitter, eldercare caregiver, nurse, or other domestic employees is simplified, summarized, and linked at this site. See "our services" or "flash demo" or "step-by-step" links at left for more details of online service.

 determine covered status

You are required to file returns and pay payroll taxes for domestic employees working in California if:

1. you meet the definition of household employment (that's usually any domestic worker whom you pay but see our definitions link in menu at left)
2. you reach any one of these wage thresholds
   • Fed Social Security:$1400 wages to any one household worker in the calendar year ($1300 in 2002 or 2001)
   • Fed and CA Unemployment:$1000 combined household wages any calendar quarter or the prior year
   • CA SDI:$750 combined household wages any calendar quarter

if you meet conditions 1 and 2, proceed to Federal Summary at left then California Summary below

 california nanny tax summary

• comply with federal requirements (see our fed summary at left)
• register for ID using form DE1HW
• register each employee using form DE34
• deduct Disability Insurance (SDI) 1.18% from each check on wages to $68,829 (2004)
• deducting income taxes is optional
• pay unemployment tax (UI) on wages to $7000
• pay employment training tax (ETT) on wages to $7000
• file quarterly return DE3BHW if under $20,000 annual wages
• file quarterly return DE6 if over $20,000 annual wages
• file quaterly DE88 and pay tax if over $20,000 annual wages
• file monthly DE88 and pay tax if accumulated income tax exceeds $350
• file annual return DE3HW if under $20,000 annual wages
• file annual return DE7 if over $20,000 annual wages
• file annual DE88 and pay tax
• consult your insurance agent about Worker's Compensation Insurance requirements
• see California forms links below

 california nanny tax forms and publications

• Household Employer's Guide, Publication 8829
  
• Wage Bracket Withholding Schedules 2004
  
• Exact Calculation Withholding Schedules 2004
  
• Wage Bracket Withholding Schedules 2003
  
• Exact Calculation Withholding Schedules 2003
  
• Registration Form for Employers of Household Workers, Form DE 1HW
  
• Report of New Employee(s), Form DE 34
  
• Employee's Withholding Allowance Certificate, Form DE 4
  
• Employer of Household Worker Election, Form DE 89
  
• Quarterly Report of Wages and Withholding for Employers of Household Workers, Form DE 3BHW
  
• Quarterly Wage and Witholding Report, Form DE 6
  
• Payroll Tax Deposit, Form DE 88All
  
• Annual Payroll Tax Return for Employer of Household Workers, Form DE 3HW
  
• Annual Reconciliation Statement, Form DE 7
  

 other considerations

• Check with your insurance agent or broker regarding CA mandatory Worker's Compensation Insurance
  
• An Employer's Guide to Worker's Compensation in California (CA Department of Industrial Relations, Division of Workers' Compensation)
• Consider adding home workers to your homeowners insurance.
  
• Check with your insurance agent regarding auto insurance if your worker drives on the job.
  
• Consider providing health insurance, paid holidays, and vacation for full-time workers.