Can You Pay Your Nanny in Cash? What California Law Says
Yes, you can pay in cash — but only if you are still withholding and reporting properly. Here is what California law requires.
These are not the same thing
Paying in cash is legal. Paying without withholding taxes, without issuing a W-2, and without registering as an employer is not. The form of payment is irrelevant — what matters is whether you are meeting your obligations as a household employer.
You can hand your nanny cash every week, as long as you are calculating withholdings, keeping payroll records, filing quarterly reports with the EDD, and issuing a W-2 at year-end.
When you are legally required to withhold
In California, you must register as a household employer and begin withholding once you pay a household employee $1,000 or more in any calendar quarter. Most full-time nanny arrangements cross this threshold in the first month.
Use a payroll service. The time and liability savings outweigh the cost by a significant margin.
Frequently asked questions
How long does it take to hire a nanny in Los Angeles?
Most full-time placements take 4 to 8 weeks from first consultation to start date. Part-time and temporary roles can move faster. Specialized roles like ROTA or newborn care typically take longer due to a smaller candidate pool.
Do you place nannies outside Los Angeles?
Our primary focus is Los Angeles and surrounding areas. We occasionally place for families with out-of-area or travel needs. Contact us to discuss your specific situation.
Do I need to pay a placement fee to hire a nanny?
Yes. Placement agencies charge a fee, typically 15 to 20% of the nanny's first-year gross salary. This covers candidate sourcing, vetting, TrustLine verification, reference checks, and the placement process. The fee is paid by the family after a successful placement.
What does Los Angeles Nannies charge for a placement?
Our placement fee is 20% of the nanny's first-year gross salary, paid once at hire. If we do not place a candidate within 30 days of starting the search, the search fee is refunded.
How long does hiring a nanny in Los Angeles take?
Most families working through a placement agency in Los Angeles complete a hire within four to eight weeks. The timeline depends primarily on how quickly the family can schedule interviews and whether they have a clear sense of what they are looking for before the search begins.
What are the real costs of hiring a nanny in Los Angeles?
Beyond hourly pay, expect: employer payroll taxes (roughly 10 to 12% of gross wages), paid sick leave (required by California law), 10 days paid vacation (competitive standard), and potentially a health contribution. Placement agency fees are typically 20% of first-year gross salary.
How do I keep a great nanny long-term?
Competitive pay, consistent communication, clear boundaries, and genuine appreciation are the biggest factors. Annual raises (3 to 5% is standard), acknowledging milestones, and giving adequate notice of schedule changes all contribute to long-term retention.
Should I hire a nanny through an agency or a job board?
An agency pre-screens candidates and presents only those who are a realistic match. A job board gives you a larger unfiltered pool to manage yourself. For first-time household employers or families who want the process handled properly, an agency is strongly recommended.
What should a nanny work agreement include in California?
A California nanny work agreement should include the hourly rate, pay schedule, guaranteed hours, overtime terms (1.5x after 9 hours per day or 45 per week), sick leave (5 days minimum required by law), duties, confidentiality terms, notice period, and termination conditions.
What is the difference between a nanny and a babysitter?
A nanny is a professional caregiver employed on a regular ongoing schedule with formal employment terms. A babysitter provides occasional, informal care. In California, nannies are household employees with legal obligations around pay, taxes, and benefits. Babysitters typically are not.
Ready to find the right nanny?
We handle sourcing, screening, background checks, and introductions. You only meet candidates worth your time.
No hire within 30 days — your search fee is refunded.