Household Employer
You may be considered a household employer if you hire someone to work as your employee in or around your home for the benefit of your personal household. If you operate a business out of your home, such as a daycare, then you would register as a commercial employer. For more information on how to determine if you qualify as a household employer, please visit the Household Employer’s Guide (DE 8829).
Refer to the table below for a list of workers and whether they are considered household employees. A household employee may perform services on a temporary or less-than-full-time basis.
Who Qualifies as a Household Employee?
- Au Pairs
- Baby-Sitters
- Butlers
- Caretakers
- Chauffeurs
- Cooks
- Crews of private yachts
- Gardeners
- Governesses/Governors
- Home health care workers
- Housekeepers
- Janitors
- Laundry workers
- Maids
- Pilots of private airplanes for family use
- Pool maintenance persons
- Valets
- Waiters/Waitresses
- Carpenters
- Electricians
- Librarians
- Musicians
- Nurses leased from a nursing registry
- Painters
- Plumbers
- Private secretaries
- Tutors
- Workers leased from an employee leasing service
- Workers provided by independent businesses (e.g., a janitorial service, catering service, gardening service, or pool maintenance service)
Annual:
- Submits a wage report quarterly.
- Files a tax return and pays taxes annually.
- Pays household wages of $20,000 or less annually and elect to be an annual household employer by completing an Employer of Household Worker Election Notice (DE 89) (PDF).
Quarterly:
- Submit a tax return, wage report, and pays taxes quarterly.
- Pays household wages that exceed $20,000 annually or pays household wages of $20,000 or less annually and does not elect to be an annual household employer.
The amount of wages you pay in a calendar quarter will determine the payroll taxes you are required to withhold and pay.
| If You Pay (in a Quarter) | Then |
|---|---|
| $750 to $999.99* | Withhold State Disability Insurance (SDI). |
| $1,000 or more** | Withhold SDI and pay Unemployment Insurance (UI) and Employment Training Tax (ETT). |
*If wages are below $750 in a following quarter, you must continue to withhold SDI from your employees’ wages through the rest of the current year and through the following calendar year.
**If wages are below $1,000 in a following quarter, you must continue to withhold SDI from your employees’ wages and pay UI and ETT through the rest of the current year and through the following calendar year.
Household employers are not required to withhold Personal Income Tax (PIT); however, they are required to report PIT wages for each household employee. If a household employee wishes to have PIT withheld from his or her wages and you agree to withhold it, you need to report and send the PIT withheld to the EDD. The California Withholding Schedules are available online.
If you are a household employer, you must report when you employ one or more people and pay cash wages of $750 or more in a calendar quarter. Cash wages include both checks and cash. Do not include noncash wages, such as meals and lodging, when calculating if you have reached $750 in cash wages.
You must register with us within 15 days after paying $750 in total cash wages. Register online with e-Services for Business.
The following examples will help you decide when you must register with us and begin paying payroll taxes:
| Cash Wages | Meals & Lodging | Am I Required to Register? |
|---|---|---|
| $700 | $149 | No, you are not required to register, report employee wages, or withhold or pay any California payroll taxes because the cash wage limit of $750 in a quarter has not been met (the value of meals and lodging is not included in reaching the $750 cash wage limit). |
| $750 | $75 | Yes, you must register, report employee wages, and withhold State Disability Insurance (SDI) on the entire $825. However, you are not required to pay Unemployment Insurance (UI) and Employment Training Tax (ETT) because the cash wage limit of $1,000 in a quarter has not been met. |
| $900 | $150 | Yes, you must register, report employee wages, and withhold SDI on the entire $1,050. However, you are not required to pay UI and ETT because the cash wage limit of $1,000 in a quarter has not been met (the value of meals and lodging is not included in reaching the $1,000 cash wage limit). |
| $1,000 | $100 | Yes, you must register, report employee wages, pay UI and ETT and withhold SDI on the entire $1,100 because the $1,000 cash wage limit in a quarter has been met. |
Registration Requirements
To register for an employer payroll tax account number, gather the following information:
- Name and Social Security number of all responsible parties (Individual Owners, Co-Owners, General Partners).
- Name and Social Security number of all officers, members, partners (Corporations, Limited Liability Company (LLC), Limited Liability Partnership (LLP), and Limited Partnership (LP)).
- Physical address where household workers provide service and mailing address.
- Phone number associated with the physical address.
- Valid email address (contact person and business).
- First payroll date wages exceed $750.
- First payroll date wages exceed $1,000.
- Federal Employer Identification Number (FEIN). A FEIN can be obtained by going to the IRS website.
- Name, phone number, address (if different from physical business or mailing address) for business contact person.
Optional
If you elect to enroll in Unemployment and Disability Insurance Elective Coverage, have the following documents available as you complete your registration for an employer payroll tax account number.
- Application for Unemployment and Disability Insurance Elective Coverage for Employees Exempted Under the California Unemployment Insurance Code (DE 1378) (PDF)
- Selection of Financing Method by a Non-Profit Organization Described in Section 501(c)(3) of the Internal Revenue Code (DE 1SNP) (PDF)
Use e-Services for Business to apply for your employer payroll tax account number. It is fast, easy, secure, and available 24 hours a day, 7 days a week.
1- Create a username and password.
- Go to e-Services for Business.
- Select Enroll.
- Enter the required information to create a username and password and select Continue.
- Choose your security questions and answer each question, then select Continue.
- Review the Enrollment Summary and print a copy for your records, then select Submit.
- Select the verification link in the email we sent you to complete the enrollment process.
Important: If you do not verify your email address within 24 hours, you will need to restart the enrollment process.
2- Log into e-Services for Business.
- Select New Employer, then select Next.
- Select Register for Employer Payroll Tax Account Number.
- Complete the online registration application.
- Select Submit.
Important: We may contact you if more information is needed to complete your request.
If you have already registered online, do not use this alternate method.
Complete the registration form Employers of Household Workers Registration and Update Form (DE 1HW) (PDF). Annual household employers must also complete the Employer of Household Worker Election Notice (DE 89) (PDF) if election is made after filing DE 1HW. Mail or fax your completed registration form to the address or fax number below.
Mail to:
Employment Development Department
Account Services Group, MIC 28
PO Box 826880
Sacramento, CA 94280-0001
Fax: 1-916-654-9211
Note: Registration by mail can take 10-14 days to process.
All employers are required to electronically submit employment tax returns, wage reports, and payroll tax deposits to the EDD. You can use e-Services for Business to comply with the e-file and e-pay mandate. It’s a fast, easy, and secure way to file, pay, and manage your employer payroll tax account online. For more information and approved electronic filing and payment methods, visit E-file and E-pay Mandate for Employers.
Quarterly Household Employers
Quarterly household employers will file the Quarterly Contribution Return and Report of Wages (DE 9) and Quarterly Contribution Return and Report of Wages (Continuation) (DE 9C) each quarter and submit payroll tax deposits electronically.
Annual Household Employers
Annual household employers are required to file an Employer of Household Worker(s) Quarterly Report of Wages and Withholding (DE 3BHW) each quarter and an Employer of Household Worker(s) Annual Payroll Tax Return (DE 3HW) with payment annually.
DE 3BHW
The DE 3BHW is used to report employee quarterly wages subject to Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI) taxes, and Personal Income Tax (PIT) wages. If PIT is withheld, that amount is also reported on this form. Even though taxes are paid just once a year, wages must be reported each quarter by state law. For any quarter that you do not pay wages, you must still file the report.
DE 3HW
The DE 3HW is used by household employers who elect to pay taxes annually. The DE 3HW is used to send withheld UI, ETT, and SDI to the EDD. If PIT is withheld, that amount is also sent to the EDD with this form. If your total accumulated wages exceed $20,000 during the year, you must notify the EDD immediately that you need to change to a quarterly household employer.
Quarter Reporting Format for Forms and Deposits
Many EDD forms require you to specify the quarter on the report and/or deposit. The date format used on forms for reporting and/or making deposits is the last 2 digits of the year and then one digit representing each quarter. Entering the incorrect format may cause delays, penalties, interest, and/or misapplication of funds.
For example, if you're submitting in 2025:
- 1st quarter of 2025 is entered as 251, which is 25 for 2025 and 1 for the first quarter.
- Subsequent quarters would be 252, 253, and 254.
For due dates, visit the Payroll Tax Calendar.
To be considered on time, electronic forms must be submitted on or before the due date. If you have an approved E-file and E-pay Mandate Wavier Request and file by paper, the forms must be postmarked on or before the due date. Refer to the E-file and E-pay Mandate for Employers for more information.
Penalty and interest will be charged on late reports. For more information, visit the Interest Rate page.
Note: If you didn’t pay any wages during a quarter, you are still considered an employer and are required to sign and file the DE 9C and DE 9 for quarterly employers and DE 3BHW for annual employers. Check the No Payroll box in Item B, then sign and mail the report. If you do not expect to pay wages within the next year, you may close your account online using e-Services for Business or complete an Employers of Household Workers Registration and Update Form (DE 1HW) (PDF).
Still have questions? Additional information is available through our no-fee payroll tax seminars, or by calling the Taxpayer Assistance Center at 1-888-745-3886.
Information Sheets
- Household Employment (DE 231L)
- Wages (DE 231A)
- Social Security, Medicare, State Disability Insurance, Federal and State Income Taxes Paid by an Employer (DE 231Q)
- Personal Income Tax Wages Reported on the Quarterly Report of Wages and Withholdings for Employers of Household Workers (DE 3BHW) (DE 231PH)
Additional Information Sheets are available online at Payroll Taxes – Forms and Publications.
Other Resources
e-Services for Business
Stay Up-to-Date
- Check Required Filings and Due Dates
- Find Payroll Tax Seminars
- Visit Employer News and Updates
- Get EDD email notices
- Get Forms and Publications
Contact Us
If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.