Quick Facts
| Item | Value | Notes |
|---|---|---|
| Minimum Wage | $16.90/hr | $16.90/hr (Jan 1, 2026); local rates higher in many cities |
| Pay Frequency | Twice monthly | |
| Overtime Rules | Complex: varies by live-in/live-out and personal care/other domestic. Live-out other: 1.5x after 8hrs/day, 2x after 12hrs/day; live-in: 1.5x after 9hrs/day and 45hrs/week | |
| Record Retention | 3 years |
State Income Tax
Withholding Form: DE 4
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: (all employers)
Paid Family & Medical Leave
Program: State Disability Insurance (SDI) + Paid Family Leave (PFL)
Yes -- min 24hrs by day 120; 40hrs by day 200; cities may require more; Yes (Paid Family Leave); Yes (State Disability Insurance)
| Item | Value |
|---|---|
| Employer Contribution | Yes |
| Employee Contribution | Yes |
| Max Weeks | 8 weeks |
Paid Sick Leave
Accrual Rate: Progressive (varies)
Annual Cap: 40 hrs/5 days
Yes -- min 24hrs by day 120; 40hrs by day 200; cities may require more; Yes (Paid Family Leave); Yes (State Disability Insurance)
New Hire Reporting
Special Requirements
CalSavers retirement program mandatory registration; paystubs required (itemized); training repayment agreements (TRAP) are illegal; mileage reimbursement required if employee drives for work
Mandatory retirement program registration
CalSavers retirement program mandatory registration by Dec 31
California Family Rights Act (4+ employees): 12 weeks unpaid + 5 days bereavement
Required Forms
Form DE 4
California state income tax withholding form
Purpose: Employee completes for state tax withholding
California state form
Purpose: State compliance
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in California?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. California state unemployment kicks in once you exceed the state's wage threshold — typically the first $7,000 of wages.
- What is the California SUI rate for a new household employer?
- New household employers in California start at 3.4%, applied to the first $7,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- Does California require State Disability Insurance (SDI)?
- Yes. California requires SDI contributions: 1.3% (employee-paid). SDI funds short-term disability benefits for employees who can't work due to non-work-related illness or injury.
- How much state income tax do I withhold for a California nanny?
- California uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
- What forms do I need to file for a household employee in California?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In California: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the California state portals.