When a family hires a nanny to work in their home, the nanny is considered an employee of the household. The law states that if the household employee is paid more than $1,900 in a calendar year, the household employer is required to withhold and remit payroll taxes to the state and IRS. “1099ing” is considered illegal. Being informed, causes less stress and problems for all parties involved in the future.
Related topic: Check out our previous post on the California Domestic Worker Bill of Rights.