State Registration Guide for Household Employers

State Registration for Household Employers

After obtaining your federal Employer Identification Number (EIN), you must register with your state. Requirements vary significantly, but most states require registration for unemployment insurance, income tax withholding, and new hire reporting.

Overview of State Requirements

Every household employer must register with their state for:

1. State Unemployment Insurance (SUI) - if you pay $1,000+ in wages in a quarter
2. State Income Tax Withholding - if your state has income tax
3. New Hire Reporting - required in all states
4. Workers' Compensation - required in CA, NJ, NY; optional elsewhere

State Unemployment Insurance (SUI)

When Registration Is Required

Federal law requires SUI registration if you pay $1,000 or more in cash wages in any calendar quarter (January-March, April-June, July-September, October-December).

Example: You hire a nanny on March 1 and pay her $3,000 by March 31. You must register for SUI because you exceeded $1,000 in Q1.

Where to Register

Each state has a different agency name and registration process:

Common Agency Names
Department of Labor
Division of Employment Security
Workforce Commission
Employment Development Department (California)
Department of Labor and Training

How to find your state's agency: Search "[Your state] unemployment insurance employer registration"

What You'll Need

• Federal Employer Identification Number (EIN)
• Business start date (employee's first day of work)
• Your Social Security number
• Mailing address
• Estimated quarterly payroll

What You'll Receive

• State employer account number: 7-10 digit number for tax reporting
• SUI tax rate: New employers typically get 2.5%-3.5% (varies by state)
• Quarterly filing deadlines: Usually due ~30 days after quarter ends

SUI Tax Rates

SUI tax rates vary by:

• State: Ranges from 0.1% (several states) to 6%+ (CA, PA, MA)
• Experience rating: New employers get standard rate; rate adjusts based on claims history
• Wage base: Tax applies to first $7,000-$60,000 of wages per employee (varies by state)

Example:

• California: 3.4% new employer rate, $7,000 wage base = max $238 per employee per year
• Texas: 2.7% new employer rate, $9,000 wage base = max $243 per employee per year

Quarterly Reporting

Every quarter, you must:

1. File wage report showing total wages paid
2. Pay SUI tax owed (quarterly wages × your SUI rate)
3. Submit by deadline (usually ~30 days after quarter ends)

Filing methods: Online portal (fastest), mail, phone

State Income Tax Withholding

Does Your State Have Income Tax?

States with NO income tax (no withholding registration needed):

• Alaska
• Florida
• Nevada
• New Hampshire (wages only; tax on dividends/interest)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

All other states: Register for income tax withholding

When Registration Is Required

If your state has income tax, you must register as soon as you hire an employee (even if withholding is $0 due to employee's low wages and W-4 allowances).

Where to Register

Look for your state's:

• Department of Revenue
• Comptroller's Office
• Taxation and Revenue Department
• Franchise Tax Board (California)

How to find it: Search "[Your state] employer withholding tax registration"

What You'll Need

• Federal EIN
• Employee start date
• Estimated monthly withholding amount
• Business activity code (use code for domestic services)

What You'll Receive

• State withholding account number: For tax deposits and reports
• Filing schedule: Most household employers file quarterly or annually
• Withholding tables: Booklet or online calculator to determine withholding amount

State Income Tax Withholding Rates

Unlike federal withholding (based on IRS tables), state withholding uses:

• State W-4 equivalent: Employee completes state withholding certificate
• State withholding tables: Published by state revenue department
• Flat percentage: Some states use fixed percentage (e.g., Pennsylvania 3.07%)

Reporting and Payment

Most states require:

• Quarterly returns: File wage report and pay withheld taxes
• Annual reconciliation: Form similar to W-2, filed at year-end
• W-2 copies to state: Some states require you to send Copy 1 of W-2s

New Hire Reporting

Federal Requirement, State Administration

Federal law requires all employers (including household employers) to report new hires within 20 days of their start date (some states require 10 or 14 days).

Why It Exists

New hire reporting helps states:

• Locate parents who owe child support
• Prevent unemployment and workers' comp fraud
• Verify employment for benefit programs

Where to Report

Each state has its own new hire registry, usually run by the:

• Child Support Enforcement Division
• Department of Labor
• Human Services Department

Find your state registry: HHS New Hire Directory

Information to Report

• Employee full name
• Employee Social Security number
• Employee address
• Employee start date
• Employer name
• Employer address
• Employer Federal EIN

How to Report

Most states accept:

• Online: Fastest and easiest
• Mail: Use state-provided form
• Fax: Some states accept fax submissions

Penalties for Non-Compliance

Failure to report can result in fines:

• $20-$500 per unreported employee (varies by state)
• Additional penalties for late reporting

Best practice: Report within 7 days of hire to avoid any issues.

Workers' Compensation

States Requiring Coverage

State	Threshold
California	$1,000+ per quarter to any one employee
New Jersey	$1,000+ per year
New York	40+ hours per week

States Where It's Optional

All other states make workers' comp optional for household employers.

However, if you don't carry coverage, you're personally liable for:

• Medical expenses from workplace injuries
• Lost wages during recovery
• Permanent disability costs
• Legal fees if employee sues

Where to Get Coverage

Contact:

• Your homeowners insurance agent (may offer or refer)
• State workers' comp fund (CA State Fund, NY State Insurance Fund, etc.)
• Private insurers (The Hartford, Travelers, NEXT Insurance)

Cost

Expect to pay $200-$1,000+ per year depending on:

• State (CA and NY most expensive)
• Occupation (caregiving vs. housekeeping)
• Payroll amount

State-by-State Quick Reference

High-Level Summary

Requirement	Threshold	How to Register
SUI	$1,000+ in a quarter	State labor department
Income Tax Withholding	First dollar (if state has income tax)	State revenue department
New Hire Reporting	All employees	State new hire registry
Workers' Comp	Varies (CA/NJ/NY require; others optional)	Insurance carrier

Need State-Specific Guidance?

NannyLedger provides automated state registration checklists based on your location. We'll tell you exactly which agencies to contact, what forms to file, and when deadlines occur.

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Common Registration Mistakes

1. Waiting Until Tax Time

Mistake: Not registering until you're ready to file annual taxes Problem: You owe quarterly SUI reports; late filing penalties accumulate Fix: Register as soon as you hire (or exceed $1,000 threshold)

2. Skipping State Withholding Registration

Mistake: "My employee has no federal withholding, so I don't need to register for state withholding" Problem: Registration is required even if withholding is $0 Fix: Register with state revenue department regardless of withholding amount

3. Not Reporting New Hire

Mistake: Forgetting to report new hire to state registry Problem: Fines of $20-$500 Fix: Set a reminder to report within 7 days of hire

4. Using Wrong Forms

Mistake: Filing business payroll forms (Form 941) instead of household forms (Schedule H) Problem: Confusion with IRS, potential double taxation Fix: Household employers file Schedule H annually, not quarterly 941

5. Assuming No State Requirements

Mistake: "I only need to worry about federal taxes" Problem: States have separate registration and reporting requirements Fix: Check your specific state's requirements (SUI, withholding, new hire, workers' comp)

Registration Timeline

Here's a typical timeline for new household employers:

Week 1: Before Employee Starts

• Apply for federal EIN
• Purchase workers' comp insurance (if required)

Week 2: First Week of Employment

• Complete Form I-9 with employee
• Obtain employee's W-4 and state withholding certificate
• Register for state unemployment insurance (if you'll pay $1,000+ in the quarter)
• Register for state income tax withholding (if applicable)

Weeks 2-3: Within 20 Days of Hire

• Report new hire to state registry

End of First Quarter

• File quarterly SUI wage report (if registered)
• File quarterly state withholding return (if applicable)

End of Year

• Prepare and distribute W-2s to employee (by January 31)
• File W-2s with Social Security Administration (by January 31)
• File Schedule H with personal tax return (by April 15)
• File annual state withholding reconciliation (if applicable)

Resources by State

Find Your State Labor Department

U.S. DOL State Directory

Find Your State Revenue Department

Search: "[State name] department of revenue"

Find Your State New Hire Registry

HHS New Hire Reporting Directory

Find Workers' Comp Information

Search: "[State name] workers compensation household employer"

Get Automated State Guidance

Keeping track of multiple state registrations, deadlines, and requirements is complex. NannyLedger automates:

• State-specific registration checklists
• Quarterly filing reminders
• Deadline calendars
• SUI rate tracking
• Workers' comp renewal alerts

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Disclaimer: State laws change frequently. This guide provides general information only. Consult your state agencies or a tax professional for current requirements specific to your situation.