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Home Glossary More Links Ask Forum Calculate Federal Summary Federal Forms We have a website just for California household employers. Click on the map to go there. CALIFORNIA SUMMARY A more detailed explanation is available in California's Publication 8829, Household Employer's Guide First, determine if you are legally a household employer (see Home page link, or the government's tax guides.) Then, be sure you fulfill the federal requirements first, before turning to these state requirements. Subject to State Disability Insurance (SDI) if you pay combined wages of $750 in any calendar quarter. Subject to Unemployment (UI) and Employment Training Tax (ETT) if you pay combined wages of $1000 in any calendar quarter. Income tax withholding is optional. Worker's Compensation insurance may be required, but is not part of employment taxation. Check with your own insurance agent or your state. The employer registers and obtains an employer ID number from California. This can be done using Form DE 1HW, or by phone with an ETSCO office listed in the Household Employer's Guide. For each new or rehired worker, the employer files Form DE 34, Report of New Employees within 20 days of hiring. This form can be filed for one worker or for several workers at once. The employer deducts State Disability Insurance ("SDI") from the worker's paycheck. The tax is deducted from the worker's pay and later transmitted with the payroll tax returns to the state by the employer. The 2004 rate is 1.18 percent applicable to the first $68,829 of wages paid per worker in the calendar year. The employer may optionally deduct income taxes from the worker's paycheck. For long-term employees who will earn enough to owe taxes at the end of the year, we recommend that you deduct income taxes, though this is optional based upon agreement between the worker and the employer. The employer pays unemployment tax ("UI"). This tax is not deducted from the worker's pay. It is paid with the payroll tax return(s) mentioned below. It is applicable to the first $7000 of wages paid per worker in the year 2004. The rate varies based upon experience and is usually assigned annually. The employer pays Employment Training Tax ("ETT".) This tax is not deducted from the worker's pay. It is paid with the payroll tax return(s) mentioned below. It is applicable to the first $7000 of wages paid per worker in the year 2004. The rate is 0.1 percent. The employer files quarterly payroll tax returns. Some employers file Form DE 3BHW, with no payment until the end-of-year filing. Employers who must pay quarterly instead of annually (generally if paying wages over $20,000 per year, but see guide) file instead Form DE6 and Form DE 88All quarterly. The employer may need to file Form DE88All and pay accumulated taxes more often than quarterly. This is required when accumulated CA income tax withholding exceeds $350. The employer files California annual payroll tax return. For quarterly payers, Form DE 7, and for annual payers, Form DE 3HW report all wages and withholdings, and complete the reconciliation of amounts owed to California for the calendar year. The Form DE 88All transmits the employer's payment. See our California Forms: CA Forms We respect our visitors: No pop ads. No scumware. No cookies. SSL Secure login. Ask a Question FAQ Search Our Sites Sign Up Home Glossary More Links Ask Forum Calculate Federal Summary Federal Forms

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