Household Employer Basics: What California Families Need to Know
If you hire a nanny, housekeeper, or other household employee to work in your home in California, you are almost certainly a household employer — not a client hiring a contractor. That distinction matters, because household employers have real legal obligations, and getting it wrong is expensive to fix later.
This is an overview, not tax or legal advice. Specific thresholds, rates, and filing requirements change year to year, so we have deliberately kept this general and pointed you to specialists who handle this every day.
Employee or independent contractor?
Most household workers are legally employees, not independent contractors. If you control when someone works, how they do the work, and you provide the tools and workspace, that relationship is generally an employment relationship. Classifying a household worker as a contractor to avoid payroll obligations is one of the most common — and most costly — mistakes families make. The classification is determined by the nature of the working relationship, not by mutual preference or convenience.
What household employers are generally responsible for
- Payroll taxes — Social Security and Medicare, plus federal and state unemployment obligations.
- Workers’ compensation coverage — California has specific requirements for household employees. Some homeowner’s policies provide limited coverage and others do not, and the limits are often lower than families assume. Confirm this with your insurer before your employee’s first day.
- Paid sick leave — required for employees in California, including household employees.
- Overtime and rest breaks — California wage-and-hour rules apply to household employees, and the specifics differ depending on the role and whether the employee lives in your home.
- Proper pay records and wage statements — employees are entitled to itemized pay statements, and you are required to keep records.
- Work authorization verification at the time of hire.
Why most families use a payroll service
Most families who hire household staff use a specialist household payroll service rather than handling filings themselves. These services register your tax accounts, run payroll, handle withholding and filings, and produce year-end tax documents. The cost is modest relative to the risk of getting it wrong, and it removes the administrative burden entirely.
We work with two established household payroll specialists and can introduce you to either:
- GTM Payroll Services — over 30 years serving household employers nationwide.
- HomeWork Solutions — complete household payroll, tax filing, and direct deposit.
Where Mansfield Domestics fits
We place the candidate. We do not process your payroll or provide tax advice. What we do is make sure you understand the employment relationship before you hire, connect you with payroll specialists who handle the compliance side, and provide interview guidelines and hiring documentation as part of every placement.
Questions about hiring household staff in Orange County? Call 714-369-8293 or email tiffany@mansfielddomestics.com.
Our payroll partners · Common questions · Our fees, in full
This page is general information, not legal, tax, or accounting advice. Household employment rules change and vary by situation. Please consult a qualified payroll provider, CPA, or employment attorney about your specific circumstances.