It depends on the wages of the nanny whether taxes are paid on a yearly or quarterly basis.
Annual:
- Reports wages quarterly and pays taxes annually.
- Pays household wages of $20,000 or less annually and elects to be an annual Household Employer.
Quarterly:
- Reports wages quarterly 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 also determine the payroll taxes you are required to withhold and pay. If you pay the nanny over $1,000 a quarter, you will have to pay California SDI, unemployment insurance and employment training tax (ETT).
For more information, please see Household Employer.
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