This is directly from the link you provided: "Under Internal Revenue Service (IRS) Notice 2014-7, the wages received by WPCS providers who live with the recipient of those services are not considered part of gross income for purposes of Federal Income Tax (FIT). On March 1, 2016, CDSS received a ruling from the IRS that IHSS wages received by IHSS providers who live in the same home with the recipient of those services are also excluded from gross income for purposes of FIT. This ruling applies to State Income Tax (SIT) as well."
The part that you refer to regards the SOC2298, which allows the CDSS to stop reporting the income on the W2 so you do not have to file a tax return.
@megank1
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