California Household Employer Setup Checklist

For explanations and current source links, start with our guide to paying a nanny legally in California.

A household employment setup is easier when the family makes the important decisions before the nanny begins. This checklist organizes the recurring tasks without turning Los Angeles Nannies into your payroll, tax, or legal adviser.

Before You Hire

• Define the role, schedule, duties, work location, and expected driving.
• Decide whether the position is live-in or live-out and whether the duties may affect the worker's legal classification.
• Set an hourly rate, overtime approach, guaranteed-hours policy, paid leave, holidays, and reimbursement terms.
• Budget for wages plus employer taxes, payroll service, workers' compensation, mileage, and benefits.
• Choose a household payroll provider or qualified tax professional.

Before the First Payroll

• Confirm whether the worker is a household employee. Nannies are commonly employees when the family controls both what work is done and how it is performed.
• Complete work-authorization paperwork and collect the information needed for payroll.
• Register as a California household employer when the applicable threshold is reached. Review the current California EDD household-employer guidance.
• Document the agreement in writing, including pay, schedule, duties, overtime, leave, reimbursements, confidentiality, reviews, and notice expectations.
• Confirm workers' compensation and insurance requirements with qualified providers.

Every Pay Period

• Record all hours worked, including approved extra time, travel time when applicable, and overnight hours that qualify as work.
• Calculate regular and overtime wages using the worker's correct classification.
• Provide an accurate wage statement and retain payroll records.
• Track paid sick leave, PTO, reimbursements, and any benefit deductions separately.
• Pay on the agreed schedule and keep funding and payment records.

Quarterly and Periodic Tasks

• Review California reporting and payment deadlines with the EDD or your payroll provider.
• Reconcile wages, employee withholdings, employer-paid taxes, and payroll deposits.
• Check whether a schedule, duty, pay, or benefit change requires a written amendment.
• Review changing local and state wage requirements before a new rate takes effect.

Year-End Tasks

• Confirm the nanny's legal name, address, and tax information before forms are prepared.
• Prepare and deliver the required W-2 and complete the household-employment tax process.
• Reconcile annual wages, taxes, reimbursements, and paid-leave records.
• Review compensation and the written agreement before the next year begins.

When the Role Changes

Update the written agreement when duties expand, the schedule changes, the nanny begins living in the home, or the position adds household-management work. A meaningful change may affect compensation, overtime, insurance, and payroll treatment.

Where to Get Help

A household payroll provider can calculate pay and support filings. A tax professional can advise on the household's tax treatment. An employment attorney can address classification, wage, leave, or agreement questions. Los Angeles Nannies can help define the position, compensation context, and hiring plan.

Note: This checklist is general education, not legal, tax, payroll, or insurance advice. Requirements depend on the facts of the employment relationship and can change. Confirm current obligations with government guidance and qualified professionals.