What is Trustline and why does it matter?

Trustline is California's only background check registry specifically for in-home child caregivers. It checks criminal history, child abuse records, and sex offender registries through DOJ and FBI databases. It goes beyond standard background checks and is administered by the California Department of Social Services.

Nanny Pay and Legal

How to Pay a Nanny Legally in California: A Family’s Guide

Paying your nanny legally in California means withholding and remitting payroll taxes, providing a W-2 at year end, paying overtime correctly, and meeting California’s sick leave requirements. It is more involved than writing a check, but the process is straightforward once it is set up.

Why Legal Pay Matters

Paying a nanny off the books creates tax exposure for you as the employer, leaves your nanny without unemployment or disability benefits if they lose the job or get injured, and invalidates most workers’ compensation coverage. In California, the risk of audit for household employers has increased significantly in recent years.

What You Need to Set Up

You need an Employer Identification Number (EIN) from the IRS, a California employer account with the EDD for state taxes, and a payroll system. Most household employers in LA use a payroll service like HomePay, NannyPay, or GTM Payroll that handles the filings automatically. The cost is typically $50 to $150 per month and is worth every dollar.

What Gets Withheld From Each Paycheck

Federal income tax, Social Security (6.2%), and Medicare (1.45%) are withheld from the nanny’s gross pay. California state income tax and SDI (State Disability Insurance) are also withheld. You as the employer match Social Security and Medicare and pay Federal and California unemployment insurance on top of that. Total employer overhead runs approximately 10 to 12% above gross wages.

California Overtime Rules for Domestic Workers

California’s Domestic Worker Bill of Rights sets overtime at 1.5x after 9 hours in a day or 45 hours in a week (not 40). Daily overtime is the rule that catches most families off guard. A nanny working 10-hour days Monday through Friday will trigger daily overtime every single day.

Required Sick Leave

California requires at least 5 paid sick days per year for domestic workers. Sick leave accrues at one hour per 30 hours worked. Include the sick leave policy in your work agreement and track it.

The W-2

Issue a W-2 by January 31 each year. If you use a payroll service, they handle this. If you are processing manually, you file through the SSA Business Services Online portal. Your nanny needs the W-2 to file their taxes. Failure to issue one is a federal penalty.

Common questions

Frequently asked questions

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 does California overtime work for household employees?

California's Domestic Worker Bill of Rights sets overtime at 1.5x after 9 hours in a single day or after 45 hours in a week. Daily overtime is the rule most families miss. A nanny working 10-hour days Monday through Friday triggers daily overtime every single day.

Do I need to pay payroll taxes for my nanny?

Yes. If you pay a household employee more than $2,700 in a calendar year, you must withhold FICA taxes, pay employer FICA match, and remit federal and California state unemployment insurance. Paying cash does not eliminate this obligation.

What are guaranteed hours for a nanny?

Guaranteed hours mean your nanny is paid for an agreed minimum number of hours per week regardless of whether you use them. If you agree to 40 hours and only need 30 one week, you owe 40 hours of pay. California household employment law treats scheduled hours as wages owed.

Do I pay my nanny if I take a vacation?

If your nanny has guaranteed hours and you are not using them because you are traveling, you generally owe their guaranteed pay. If you negotiate a reduced vacation rate in advance and in writing, that may apply. Unilaterally not paying for weeks you are away is a wage violation.

Can I pay my nanny as an independent contractor?

No. In California, a household employee who works regular hours for one family is an employee, not an independent contractor. Misclassifying them as a contractor to avoid employer obligations creates retroactive tax liability and potential penalties.

Do I pay my nanny during holidays?

California does not legally require holiday pay, but paying for major holidays is standard in Los Angeles. Most work agreements list specific paid holidays. If your nanny works on a holiday, they should receive their regular pay plus any applicable overtime.

Is it illegal to pay a nanny under the table in Los Angeles?

Yes. Nannies are household employees under California and federal law. Paying off the books exposes families to back taxes, penalties, and potential liability. It also leaves the nanny without workers compensation, unemployment protection, or Social Security credits.

How does California nanny overtime work?

California law entitles most nannies to overtime after 9 hours in a day or 45 hours in a week, and double time after 12 hours in a day. Personal attendant rules apply differently - families should confirm with a payroll specialist how their specific arrangement is classified.

Can I pay a nanny in cash in California?

Cash is a payment method, not a classification. You can pay in cash but must still report wages, withhold appropriate taxes, and issue a W-2. Paying cash without tax reporting is what is illegal, not cash itself.

Compare options

Legal pay vs. under-the-table pay

Paying legally protects both the family and the nanny. It also keeps the relationship cleaner if there is a wage dispute, injury, or separation.

Option	Best for	Upside	Watch for
W-2 payroll	Household employee roles	Clear wage records, tax compliance, unemployment and workers comp path	Requires setup and ongoing payroll administration
Cash with reporting	Families who prefer cash payment but still report wages	Payment method stays flexible while records remain compliant	Still requires tax withholding and documentation
Under the table	Not recommended	May feel simpler at first	Creates back-tax, penalty, insurance, and wage-claim risk

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Nanny Pay and Legal

Guaranteed Hours for Your Nanny: What California Law Requires

Guaranteed hours mean your nanny is paid for an agreed minimum number of hours per week regardless of whether you need them to work that many. In California, failing to pay for guaranteed hours is a wage violation, not a courtesy issue.

Why Guaranteed Hours Exist

Your nanny has organized their life around a fixed schedule and income. When families cancel days, leave town, or reduce hours without notice, the nanny loses income they counted on. California law treats domestic workers as employees, which means you cannot simply not pay for a scheduled workday because plans changed.

How Guaranteed Hours Work in Practice

If you agree to a 40-hour week and you only need 30 hours one week, you still owe 40 hours of pay. The nanny showed up or was available as agreed. The reduction in hours was your decision, not theirs.

This is commonly misunderstood by families who think they only pay for hours actually worked. For W-2 household employees in California, that is not how it works.

What to Include in Your Work Agreement

State the guaranteed minimum weekly hours explicitly. This protects both parties: the nanny knows their minimum income, and you have documented what you agreed to. Most LA placement agencies include a guaranteed hours clause as standard in their work agreement templates.

When You Travel or Take Extended Vacations

If you travel and do not need your nanny for two weeks, you generally owe their guaranteed pay for those weeks unless your agreement explicitly states otherwise. Some families negotiate a lower vacation rate (typically 50 to 100% of regular pay) for extended periods the nanny is not needed. This must be agreed upon in advance and in writing.

Reducing Hours Permanently

If your family’s situation changes and you genuinely need fewer hours long-term, that is a change to the employment terms that requires proper notice. You cannot simply announce reduced hours starting Monday. Give reasonable notice (typically 2 weeks minimum) and put the new arrangement in writing.

Common questions

Frequently asked questions

What are the real costs of hiring a nanny in Los Angeles?

How does California overtime work for household employees?

Do I need to pay payroll taxes for my nanny?

What are guaranteed hours for a nanny?

Do I pay my nanny if I take a vacation?

Can I pay my nanny as an independent contractor?

Do I pay my nanny during holidays?

Is it illegal to pay a nanny under the table in Los Angeles?

How does California nanny overtime work?

Can I pay a nanny in cash in California?

Get a clearer nanny search plan

We help Los Angeles families define the role, understand pay, screen candidates, and move through the process with fewer surprises.

Start Your Search

Nanny Pay and Legal

Nanny Mileage Reimbursement in California: What Los Angeles Families Are Required to Pay

In California, reimbursing your nanny for mileage driven in their personal vehicle is not optional — it is a legal requirement. Many LA families either miss this or apply it incorrectly. Here is what actually applies and how to handle it cleanly.

Quick answer: Under California Labor Code Section 2802, you must reimburse your nanny for all necessary business expenses, including mileage driven in their personal vehicle during work. Most families use the IRS standard mileage rate (updated annually) as a safe benchmark.

Do I have to reimburse my nanny for mileage in California?

Yes — if the driving is for your benefit as part of the job. California Labor Code Section 2802 requires employers to cover all necessary business expenses. If your nanny is using their own car to perform their duties, you are required to cover the cost.

When does mileage reimbursement apply?

Any time your nanny uses their personal vehicle for work-related duties:

School pickup and drop-off
Driving to activities, appointments, and playdates
Running errands (groceries, pharmacy, returns)
Driving between locations during the workday

It does not apply to commuting to and from your home.

Edge cases: Starting the day at school or an activity is reimbursable. Mixed-use trips: only the work-related portion is reimbursed.

What mileage rate should I pay my nanny?

California does not set a fixed rate. You must reimburse enough to fully cover actual expenses — gas, wear and tear, insurance, depreciation. Most families use the IRS standard mileage rate because it is widely accepted, easy to administer, and courts often look to it as a reasonable benchmark. You can pay more. If you pay less, you must be able to prove it fully covers actual costs.

Is mileage reimbursement separate from wages?

Yes. It is not wages, not subject to overtime, and should not be bundled into an hourly rate. Handled properly, reimbursements are not taxable income. Rolling it into pay often creates compliance issues.

What if we provide a car?

If your nanny uses a family vehicle, mileage reimbursement does not apply. You are responsible for gas, insurance (must allow a household employee as a driver), and maintenance. Confirm your policy explicitly covers this.

What if we require driving but do not reimburse?

You cannot shift business expenses onto an employee. If challenged, you may owe back reimbursement, interest, and potential penalties. Mileage claims often surface after termination and can go back years.

Can we use a flat weekly stipend instead?

Only if it actually covers real mileage. A flat stipend that falls short of actual usage is still non-compliant. If you use a stipend, track actual miles periodically and adjust as needed.

How should mileage be tracked?

A basic log: date, start and end location, purpose, miles driven. Tools: notes app, shared doc, or a mileage app such as MileIQ. Reimburse each pay cycle. If you do not keep records, disputes often rely on the employee’s reasonable estimates.

What about insurance and liability?

If your nanny drives their own car, their insurance is primary — but you may still have exposure as the employer. If they drive your car, your policy must allow them as a driver. Many families carry an umbrella policy for added protection. Some insurers require disclosure if a household employee regularly drives children.

Does this apply to all household employees?

Yes. California Labor Code Section 2802 applies broadly to all employees, including household workers. Enforcement is inconsistent, but liability is real — especially if a dispute arises.

Los Angeles Nannies

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We help families structure nanny arrangements correctly from the start — pay, reimbursements, work agreements, and expectations. See the salary guide or talk to us directly.

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Salary Guide

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Nanny Pay and Legal

Do You Pay Your Nanny When You Go on Vacation?

Most families assume that if they are not home, they do not owe their nanny for that week. That is usually incorrect — and it is one of the most common misunderstandings in household employment. Here is what you actually owe under California law and standard practice.

Quick answer: Yes. If your nanny has guaranteed hours and you cancel work because you are on vacation, you owe them their normal pay for those hours. Your vacation does not pause their income.

Do I have to pay my nanny if I go on vacation in California?

If you have a written agreement that includes guaranteed hours, you are contractually obligated to pay them — even if you are away.

If you do not have guaranteed hours in writing, the obligation is less clear. California law does not automatically require you to pay for full weeks you cancel in advance. However, most professional arrangements in Los Angeles include guaranteed hours, and not offering them will limit your candidate pool significantly.

What are guaranteed hours for a nanny?

Guaranteed hours are the minimum number of hours per week you commit to paying your nanny, regardless of whether you use them.

A standard full-time agreement might guarantee 40 to 45 hours per week. If you cancel a week because you are traveling, your nanny is still reserving that time for you and relying on that income. The expectation — and typically the agreement — is that those hours are paid.

Simple clause example: “Family guarantees ___ hours per week. If Family cancels scheduled hours, Nanny will be paid as normal.”

Is this a legal requirement or just industry standard?

Primarily contractual. If guaranteed hours are in your agreement, you owe them. Not paying is a breach of contract.

California wage law — such as reporting time pay — generally applies when an employee shows up to work or is sent home early, not when a full week is canceled in advance. That is why the written agreement matters.

Separately, this is standard practice. Families who do not offer guaranteed hours struggle to hire and retain strong candidates.

What if you bring your nanny on vacation with you?

This becomes a working trip. All working hours are paid at the agreed rate, overtime still applies under California law (daily and weekly thresholds), travel time is paid, and all expenses — flights, accommodation, meals — are covered by you. Your nanny should have a private room.

Some families use an overnight rate or flat travel stipend for certain hours, but this must be agreed in advance and still comply with wage laws. See the full travel guide for how to structure this correctly.

What if your nanny takes their own vacation at the same time?

If they are using accrued PTO, that time is paid as normal. If you cancel the week and they independently choose to travel, you still owe guaranteed hours unless your agreement explicitly states otherwise.

What about partial weeks or schedule changes?

If you cancel part of a week, you typically still owe the full guaranteed hours unless your agreement allows for prorating canceled days or banking hours to another week. These arrangements must be clearly defined in writing. Do not assume flexibility without it.

What does “available to work” actually mean?

Your nanny is considered available if they are ready and willing to work their normal schedule and have not made conflicting plans or declined shifts. If they are unavailable by choice, guaranteed hours may not apply — depending on your agreement.

How do most Los Angeles families handle this?

Professional nanny arrangements in Los Angeles almost always include guaranteed hours. Families pay their nanny as normal during vacations. Many also offer separate paid vacation time for the nanny — one or two weeks of PTO — in addition to guaranteed hours.

What if you cannot afford to pay during vacations?

Structure the agreement upfront. Options some families use: lower guaranteed hours (35 instead of 40), or a limited number of unpaid cancellation weeks per year. These terms must be agreed in writing before the role starts. You cannot change them later without mutual agreement.

If cost is a constraint, consider adjusting the role structure or exploring a nanny share.

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Nanny Pay and Legal

The Hidden Costs of Paying Your Nanny Legally in Los Angeles Nannies

Real cost of a nanny

The Hidden Costs of Paying a Nanny in Los Angeles

The hourly rate is only part of what a nanny actually costs. Here is the full picture so you can budget accurately before you start your search.

Employer taxes

What you pay on top of the hourly rate

As a household employer in California, you are responsible for: Social Security (6.2%), Medicare (1.45%), California UI (up to 6.2% on first $7,000), and California SDI (0.9%). That adds roughly 10–12% on top of gross wages.

A nanny earning $35/hr for 40 hours a week costs roughly $1,400/week in wages plus ~$168 in employer taxes — before any benefits.

Overtime and guaranteed hours

California overtime rules for household employees

California nanny overtime kicks in after 9 hours/day or 45 hours/week — earlier than standard federal law. Overtime is 1.5x the regular rate. If your nanny works 10 hours one day, that extra hour is billed at time-and-a-half.

Guaranteed hours clauses (common in written agreements) mean you pay for the agreed minimum even if you send your nanny home early. Plan your schedule with this in mind.

Common questions

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?

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.

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Nanny Pay and Legal

Los Angeles Nannies - Is Being Paid in Cash Really in Your Best Interest?

Nanny payroll

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.

Cash payment vs off-the-books

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.

The threshold

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.

Common questions

Frequently asked questions

How long does it take to hire a nanny in Los Angeles?

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?

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?

What are the real costs of hiring a nanny in Los Angeles?

How do I keep a great nanny long-term?

Should I hire a nanny through an agency or a job board?

What should a nanny work agreement include in California?

What is the difference between a nanny and a babysitter?

Los Angeles Nannies

Ready to find the right nanny?

We handle sourcing, screening, background checks, and introductions. You only meet candidates worth your time.

Start Your Search Why Choose Us

No hire within 30 days — your search fee is refunded.

Nanny Pay and Legal

Nanny payroll

Why You Should Stop Paying Your Nanny Under the Table

Paying your nanny in cash off the books might seem simpler. It is not — and the exposure to your family is real.

The risks

What off-the-books pay actually exposes you to

Families who pay cash without withholding taxes face: back taxes plus penalties and interest, potential civil claims from the nanny for unpaid benefits, ineligibility for the Dependent Care FSA tax break, and complications if a Workers' Compensation claim is ever filed.

California has an active labor enforcement environment. A dispute with a former nanny can surface years of liability.

The compliant path

What legal payroll actually involves

Legal nanny payroll is not complicated when you use the right service. HomePay, GTM Payroll, and NannyChex all handle withholding, filings, and year-end W-2 preparation for a flat monthly fee. Most run $50–$100/month.

Legal payroll also qualifies you for the federal Child and Dependent Care Tax Credit, which can offset a significant portion of the admin cost.

Common questions

Frequently asked questions

How long does it take to hire a nanny in Los Angeles?

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?

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?

What are the real costs of hiring a nanny in Los Angeles?

How do I keep a great nanny long-term?

Should I hire a nanny through an agency or a job board?

What should a nanny work agreement include in California?

What is the difference between a nanny and a babysitter?

Los Angeles Nannies

Ready to find the right nanny?

We handle sourcing, screening, background checks, and introductions. You only meet candidates worth your time.

Start Your Search Why Choose Us

No hire within 30 days — your search fee is refunded.

Nanny Pay and Legal

Nanny Pay and Legal

Why Legal Pay Matters

What You Need to Set Up

What Gets Withheld From Each Paycheck

California Overtime Rules for Domestic Workers

Required Sick Leave

The W-2

Frequently asked questions

Legal pay vs. under-the-table pay

Get a clearer nanny search plan

Continue reading

Why Guaranteed Hours Exist

How Guaranteed Hours Work in Practice

What to Include in Your Work Agreement

When You Travel or Take Extended Vacations

Reducing Hours Permanently

Frequently asked questions

Get a clearer nanny search plan

Continue reading

Nanny Mileage Reimbursement in California: What Los Angeles Families Are Required to Pay

Do I have to reimburse my nanny for mileage in California?

When does mileage reimbursement apply?

What mileage rate should I pay my nanny?

Is mileage reimbursement separate from wages?

What if we provide a car?

What if we require driving but do not reimburse?

Can we use a flat weekly stipend instead?

How should mileage be tracked?

What about insurance and liability?

Does this apply to all household employees?

Setting this up for the first time?

Continue reading

Do You Pay Your Nanny When You Go on Vacation?

Nanny Mileage Reimbursement in California

Traveling With Your Nanny

Do You Pay Your Nanny When You Go on Vacation?

Do I have to pay my nanny if I go on vacation in California?

What are guaranteed hours for a nanny?

Is this a legal requirement or just industry standard?

What if you bring your nanny on vacation with you?

What if your nanny takes their own vacation at the same time?

What about partial weeks or schedule changes?

What does “available to work” actually mean?

How do most Los Angeles families handle this?

What if you cannot afford to pay during vacations?

Ready to set this up correctly?

Continue reading

Do You Pay Your Nanny When You Go on Vacation?

Nanny Mileage Reimbursement in California

Traveling With Your Nanny

The Hidden Costs of Paying a Nanny in Los Angeles

What you pay on top of the hourly rate

California overtime rules for household employees

Continue reading

Temporary Daytime Newborn Care Specialist - Beverly Hills (May-September 2026)