What would the IRS flag about how you've been paying your nanny?

California has more requirements than most states, but don't worry—we'll walk you through everything. The good news? Your employee gets great benefits, including disability coverage and paid family leave. We handle all the math so you can focus on your family.

State unemployment insurance (SUI). California requires household-employer registration, reporting, and SDI once quarterly wages reach $750. UI and ETT begin once quarterly wages reach $1,000. New-employer rate range in California: 1.5% - 6.2%. Missing the registration is one of the most common audit findings — the simulator flags it when your quarterly wages cross the applicable threshold.

State income tax withholding. California has state income tax, which means you may need to withhold from your nanny's paycheck (it depends on whether they elect withholding on the state W-4 equivalent). If they do, you owe quarterly remittance and an annual state W-2 reconciliation. The simulator flags missing withholding setup or unreported wages.

State disability insurance (SDI). California runs a state-administered SDI program that applies to household employees. These are typically funded by employee withholding (some states add an employer contribution) and require separate registration and remittance from FICA/FUTA. The simulator flags missing setup or under-withholding.

Minimum wage. The minimum wage in California is $16.90/hour. If you paid below this rate, the simulator surfaces it as a Department of Labor exposure — separate from tax findings, and often more expensive (back wages plus liquidated damages).

Run the audit above to see exactly which California rules apply to your situation — each finding comes with dollar exposure and a concrete next step.