California Form DE-1HW is the Registration Form for Employers of Household Workers that every California household employer must file with the California Employment Development Department within 15 days after paying $750 or more in cash wages in a calendar quarter to one or more household workers. Filing it opens an EDD employer payroll tax account so you can report wages, pay Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI), and withhold California Personal Income Tax (PIT) on a nanny, caregiver, housekeeper, gardener, or other in-home worker.
If you ignore the DE-1HW or file it late, the EDD can register you on its own, hit you with a 10% penalty plus interest under California Unemployment Insurance Code §1126, and back-bill you for every quarter you missed. According to EDD’s most recent Household Employer’s Guide (DE 8829), more than 60,000 California families register as household employers each year, and EDD audit reports show that roughly 1 in 5 first-time filings is rejected for a missing FEIN, wrong start date, or unchecked annual-election box.
Here is what this guide gives you:
- 📝 A line-by-line walkthrough of every box on the current DE-1HW, including the annual-vs-quarterly election that most filers get wrong
- 👨👩👧 Three full filled-out examples following a new-baby family, an adult child hiring a caregiver, and a couple with a part-time housekeeper
- 📅 Exact deadlines, penalties under CUIC §§1126 and 1127, and EDD processing times for online vs. paper filing
- 📎 A pre-filing checklist of every document, ID number, and dollar figure you must gather before opening the form
- ❓ 14 plain-English FAQs covering field-level confusion, federal Schedule H interaction, and what happens after EDD assigns your eight-digit account number
What Form DE-1HW Is and Who Must File It
Form DE-1HW is the official EDD registration form a California household employer files to open a state payroll tax account. The form’s full title is Registration Form for Employers of Household Workers, and the most recent revision is printed in the lower-left corner of the PDF (currently Rev. 13). You file it once, when you first cross the wage threshold, not every year. After EDD processes it, you receive an eight-digit employer payroll tax account number that you will use on every later return, including the DE 9, DE 9C, and the annual DE 3HW or quarterly DE 3BHW deposit form.
You must file the DE-1HW if you pay $750 or more in cash wages in any calendar quarter (current or prior four quarters) to one or more household workers in a private home, local college club, or local fraternity or sorority chapter. Cash wages include checks, direct deposit, money orders, and Venmo or Zelle, but not the value of meals, lodging, or transit passes. The threshold is set by CUIC §682 and applies to both UI/ETT coverage and SDI coverage of the worker.
Household workers covered by the form include nannies, babysitters over age 18, in-home caregivers, housekeepers, cooks, gardeners, drivers, and personal attendants paid by the family rather than by an agency. If a placement agency cuts the worker’s check, the agency is the employer and you do not file DE-1HW. Workers who are independent contractors under AB 5 / Labor Code §2775 and the ABC test are not covered, but EDD treats nearly all in-home workers as employees, so do not assume contractor status without confirmation.
You do not file DE-1HW if your only worker is your spouse, your child under 21, your parent (with limited exceptions), or a worker under 18 whose principal occupation is being a student. You also skip the form if you have a federal employer identification number and have already registered as a commercial employer using the standard DE-1; in that case, EDD wants you to register your household worker under the existing commercial account, not a new household account.
Before You Start: Documents and Information You Need
Open the DE-1HW only after you have gathered every item below, because the EDD e-Services portal will time out after 30 minutes of inactivity and you will lose your entries. Missing a single piece of information, especially the FEIN or the first-payroll date, is the most common reason filings get rejected and bounced back to a paper review queue. Plan on 20–30 minutes for the actual data entry once your file is complete.
The pre-filing checklist below is the minimum every household employer needs:
- Your Federal Employer Identification Number (FEIN). Get it free from the IRS online EIN application before you start; without it, EDD cannot finish registering you and you cannot file the federal Schedule H later.
- Your Social Security Number and date of birth. EDD uses your SSN as the responsible-party identifier; a typo here triggers a manual review that adds 4–6 weeks.
- Your California driver’s license or ID number. Required on Item C of the form to verify identity and prevent identity-theft registrations.
- Your home address and mailing address. The home address is the work site; if your mailing address differs (P.O. Box, accountant’s office), you must list both or EDD notices will go to the wrong place.
- The exact date you first paid $750 or more in a quarter. This date controls when your liability starts; estimating it wrong creates back-tax exposure.
- Estimated annual cash wages for all household workers combined. EDD uses this to set your initial UI reserve account and to decide if you can file annually.
- Each worker’s full legal name, SSN, and start date. You will not list workers on the DE-1HW itself, but you need them ready for the immediate DE 34 Report of New Employee(s) filing.
- Your bank routing and account number. Required if you elect EFT for deposits, which EDD prefers and which avoids the 15% non-EFT penalty under CUIC §13021(c).
- A working email address. EDD sends your eight-digit account number, e-Services enrollment code, and confirmation letters to this address; a misspelled email is the single most common cause of “lost” registrations.
- Your decision on annual vs. quarterly reporting. This is the central DE-1HW choice; once made, it locks in for the calendar year.
Where to Get the Form and How to Access It
The official PDF lives on the EDD website at the DE-1HW form page, and the fillable online version lives inside the EDD e-Services for Business portal. EDD strongly prefers the online version because it pre-validates your FEIN, SSN format, and start date, and it issues your account number in 1–3 business days instead of the 4–6 weeks paper takes. The paper PDF still exists for filers who do not have reliable internet access or who prefer mailing.
To use the online version, go to e-Services for Business, click Enroll, choose Employer, and create a username and password. After you log in, choose Register for Employer Payroll Tax Account Number, then select Household Employer. The portal walks you through the same fields the paper DE-1HW asks, but in a more forgiving order with built-in field validation and an optional save-and-resume feature.
To use paper, download the DE-1HW PDF, print it on letter-sized paper, complete it in black ink or by typing into the fillable PDF, sign it in wet ink, and mail it to Employment Development Department, Account Services Group, MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001. Do not fax the DE-1HW; EDD removed fax intake for new household registrations in 2023 and a faxed form will be discarded without notice.
You may also call EDD’s Taxpayer Assistance Center at 1-888-745-3886 to request a paper form by mail, but the call-center wait averages 35 minutes and the mailed packet takes 7–10 business days. Tax preparers and payroll services can register on a client’s behalf using the DE 48 Power of Attorney Declaration attached to the DE-1HW.
Step-by-Step: How to Fill Out Form DE-1HW Line by Line
The DE-1HW has a header block and 11 numbered sections labeled A through K. Complete them in order; some downstream boxes (like the annual-vs-quarterly election in Item I) depend on answers in earlier boxes. The walkthrough below uses the paper field labels verbatim, because the online portal mirrors them exactly.
Header: Form Title and Revision Date
The very top of the page reads Registration Form for Employers of Household Workers (DE-1HW Rev. 13) and includes a barcode in the upper-right. You do not write anything in the header, but you should confirm the revision number matches the current version on the EDD forms page before you start. Rev. 13 is the version EDD currently accepts; older revisions get rejected.
For example, Priya Shah downloads the PDF on a Tuesday morning, sees Rev. 13 in the lower-left, and cross-checks the EDD forms page to confirm. The nuance here is that EDD sometimes posts a newer revision mid-quarter, and using a stale form means re-filing from scratch.
A common mistake is printing an old revision a payroll service emailed last year; EDD’s scanner reads the barcode, flags the obsolete form, and mails it back unprocessed, which can push your registration past the 15-day deadline and into penalty territory. The misconception is that “the form is the form” — it isn’t, because EDD updates field codes between revisions and the scanner is unforgiving.
Item A: Type of Organization
Item A asks you to mark the box that describes your filing entity, with choices for Individual Owner, Spouses/Registered Domestic Partners (RDP) Co-Ownership, Estate, Trust, Other. For a normal household employer, this is almost always Individual Owner or Spouses/RDP Co-Ownership.
To answer it, check exactly one box; if you and your spouse or registered domestic partner share legal responsibility for the household and both want to be on the account, mark Spouses/RDP Co-Ownership. If only one of you will be the responsible party, mark Individual Owner even if you are married.
For example, Daniel and Marcus Romero-Wright are married and both want to be on the EDD account so either can sign returns; they check Spouses/RDP Co-Ownership and list both names in Item C. The nuance is that an Estate checkbox applies when a deceased person’s estate continues to employ a caregiver during probate; the executor files using the estate’s FEIN, not the decedent’s SSN.
A common mistake is checking Other because the filer thinks “household” is a separate category; it isn’t, and EDD will return the form for clarification, which costs you 4–6 weeks. The misconception is that married filers must always pick the co-ownership box; in reality, choosing Individual Owner is fine and often simpler if only one spouse will sign returns.
Item B: Federal Employer Identification Number (FEIN)
Item B asks for your nine-digit FEIN issued by the IRS, formatted as XX-XXXXXXX. EDD requires it even though many household employers think only “real” businesses need one.
To answer it, enter the FEIN exactly as the IRS issued it on the CP 575 confirmation notice. If you do not yet have one, stop, apply at the IRS EIN Assistant, receive your FEIN instantly, then resume the DE-1HW.
For example, Aisha Carter applies for her FEIN on Monday, receives 87-1234567, and types 87-1234567 into Item B on Tuesday. The nuance is that an FEIN obtained for a sole proprietorship can be reused for household employment — you do not need a separate FEIN for the nanny.
A common mistake is leaving Item B blank and writing “applied for”; EDD will hold your registration in suspense for up to 90 days and may close it if the FEIN never arrives. The misconception is that your SSN can substitute for the FEIN on this line; it cannot, because EDD must report wages to the IRS under an FEIN, not an SSN.
Item C: Owner / Co-Owners / Officers Information
Item C is the largest block on the form and asks for full legal name, title, SSN, driver’s license number, date of birth, home address, and home phone for each responsible party. There is room for up to four people.
To answer it, write your full legal name as it appears on your Social Security card (last name, first name, middle initial), your SSN as XXX-XX-XXXX, your CA DL or ID as XNNNNNNN, your DOB as MM/DD/YYYY, and your home address with street, city, state, and ZIP. Use all-caps printing on paper; the online portal accepts mixed case.
For example, Janet Liu writes LIU, JANET M, SSN 123-45-6789, DL D1234567, DOB 03/14/1985, and her Oakland home address. The nuance is that if you have a P.O. Box for mail, the home address line still requires a physical street address — EDD uses it to confirm the work site is in California.
A common mistake is using a married name that does not yet match the SSA record; EDD cross-checks names against SSA, and a mismatch triggers a 4-to-6-week hold. The misconception is that you can list a payroll service or accountant in Item C; only individuals with personal legal responsibility belong here, and a preparer goes on the DE 48 instead.
Item D: Business Name (DBA) and Trade Name
Item D asks for any business name, DBA, or trade name your household uses, even though most households don’t have one. Most filers leave this blank or write N/A.
To answer it, write the exact DBA on file with your county clerk if you have one, otherwise write N/A in the box. Do not invent a name like “The Liu Household.”
For example, Janet Liu has no DBA, so she writes N/A in Item D and moves on. The nuance is that some families running a small in-home daycare alongside a personal nanny do have a DBA; in that case the DBA goes here and the in-home daycare may need a separate commercial DE-1, not a DE-1HW.
A common mistake is writing a casual nickname like “The Smith Family”; EDD treats that as a real DBA, searches the Secretary of State database, finds nothing, and bounces the form. The misconception is that Item D is required; for a true household employer, it is not, and N/A is the right answer.
Item E: Physical Location of Household
Item E asks for the street address where the household worker actually performs the work. This is the work site, not your mailing address.
To answer it, enter street number, street name, apartment or unit, city, county, state, and ZIP. The county field matters because EDD uses it for local statistics and for routing audit assignments.
For example, Marcus Romero-Wright writes 1428 Elm Street, Apt 3B, Berkeley, Alameda County, CA 94703. The nuance is that if the worker rotates between two homes (a primary residence and a vacation home in California), EDD wants the address where the worker spends the majority of paid hours.
A common mistake is listing your accountant’s address in Item E; EDD reads that as a commercial workplace and converts your account to a regular DE-1, which triggers higher tax rates and a different return series. The misconception is that a P.O. Box is acceptable here; it is not, because EDD must verify a physical California work site.
Item F: Mailing Address
Item F asks where EDD should send notices, returns, and your annual rate notice. It can be the same as Item E or different.
To answer it, write SAME AS ITEM E if mail goes to the home, or enter the alternate mailing address (P.O. Box, accountant, payroll service) in full. Always include the suite or P.O. Box number.
For example, Aisha Carter uses her CPA’s office, so she writes c/o Patel CPA, 500 Capitol Mall, Suite 1200, Sacramento, CA 95814. The nuance is that EDD sends the annual rate notice and the year-end DE 542 each January; if Item F is wrong, you may miss the rate notice and overpay UI tax for the year.
A common mistake is leaving Item F blank because Item E is filled in; EDD treats blank as undeliverable and pauses your account. The misconception is that you can change Item F by phone later; you can, but only after the account is open, so getting it right the first time saves weeks.
Item G: Date First California Wages Paid
Item G asks for the exact MM/DD/YYYY when you first paid wages of any amount to a household worker, plus a separate sub-line for the date you first reached or expected to reach $750 in a quarter. This date drives your liability start.
To answer it, enter the actual first-paycheck date, not the worker’s start date and not the date you decided to register. The two are different; EDD wants the day money first changed hands.
For example, Daniel Romero-Wright paid his nanny her first $400 check on 01/05/2026, then paid more, crossing $750 on 01/26/2026. He writes 01/05/2026 on the first line and 01/26/2026 on the threshold line. The nuance is that retroactive payments (like a signing bonus paid before the start date) count as the first wage date.
A common mistake is writing the worker’s hire date instead of the first-pay date; this often understates liability by one or two weeks and creates a back-tax bill. The misconception is that you can round to the start of the quarter; EDD wants the exact day, and rounding can move your liability into the wrong quarter.
Item H: Estimated Annual Wages
Item H asks for your good-faith estimate of total cash wages you will pay all household workers combined during the calendar year. EDD uses this for reserve-account setup and for your annual-filing eligibility check.
To answer it, multiply the worker’s gross hourly rate by expected hours per week by 52, or use the agreed annual salary, then round to the nearest dollar. Include overtime, bonuses, and holiday pay; exclude meals and lodging.
For example, Priya Shah expects to pay her nanny $25/hour × 40 hours × 52 weeks = $52,000 and writes $52,000 in Item H. The nuance is that estimates above $20,000 lock you out of annual filing and force quarterly DE 9 / DE 9C reporting; this is the trigger filers most often miss.
A common mistake is dramatically under-estimating to qualify for annual filing; EDD reconciles at year-end, and a material under-estimate triggers a CUIC §1126 negligence penalty. The misconception is that the estimate is “just a guess”; EDD treats it as a binding declaration for the current year.
Item I: Annual or Quarterly Election
Item I is the single most consequential box on the DE-1HW. You check Annual (file once a year on the DE 3HW) or Quarterly (file four times a year on the DE 9 / DE 9C). The election locks in for the entire calendar year.
To answer it, check Annual if your estimated annual cash wages in Item H are $20,000 or less and you want one filing per year; check Quarterly if Item H exceeds $20,000 or if you simply prefer to deposit each quarter. You can change the election only at the start of a new calendar year by submitting a DE 89 Employer Account Statement request.
For example, Daniel Romero-Wright expects $32,000 in wages, which is over the $20,000 cap, so he checks Quarterly. The nuance is that even employers under $20,000 sometimes prefer quarterly filing because it spreads the cash-flow hit; EDD allows that.
A common mistake is checking Annual without realizing you still owe quarterly deposits of withheld PIT and SDI on the DE 88; the return is annual, but the deposits are not. The misconception is that Annual means “no quarterly anything”; in reality, you may still owe DE 88 deposits each quarter even on annual reporting.
Item J: Industry / NAICS Description
Item J asks for a brief description of your “industry” and a NAICS code. For a household employer, the answer is straightforward but easy to overthink.
To answer it, write Private household with employees on the description line and enter NAICS code 814110 in the code box. This is the official NAICS code for private households per the U.S. Census NAICS lookup.
For example, Janet Liu writes Private household with employees and 814110. The nuance is that NAICS 624120 (services for the elderly and disabled) belongs to agencies, not families; even if your worker is a caregiver, you stay under 814110.
A common mistake is leaving Item J blank because the filer assumes “households don’t have an industry”; EDD’s scanner rejects blank NAICS fields. The misconception is that the NAICS choice changes your tax rate; it does not for household employers — your UI rate is set by your reserve-account experience, not your NAICS code.
Item K: Declaration and Signature
Item K is the perjury declaration and signature block. Sign in wet ink on paper, or use the e-Services electronic signature online.
To answer it, print your name, sign on the signature line, write your title (Owner, Co-Owner, Executor, etc.), enter the signing date as MM/DD/YYYY, and enter a daytime phone number. The signature is a declaration under penalty of perjury under California law.
For example, Priya Shah signs as Priya N. Shah, title Owner, date 02/02/2026, phone (415) 555-0188. The nuance is that for Spouses/RDP Co-Ownership, both spouses must sign; missing the second signature is a top-five rejection cause.
A common mistake is having a payroll service sign Item K; only the actual responsible party can sign, and a preparer signature voids the registration. The misconception is that an electronic typed name on the paper PDF counts as a signature; it does not — EDD requires a wet-ink signature on the paper version, full stop.
Three Filled-Out Examples Using Real Scenarios
Each scenario below follows one named filer through the DE-1HW from header to signature so you can see exactly what an EDD-ready form looks like. All three were modeled on common 2026 California household-employer fact patterns.
Scenario 1: Priya Shah, New Parent Hiring a Full-Time Nanny
Priya and her partner welcomed a baby in late 2025 and hired a full-time nanny starting January 5, 2026, at $25/hour for 40 hours/week. Priya is the sole responsible party on the EDD account.
| Form Section | What Priya Enters |
|---|---|
| Item A: Type of Organization | Individual Owner |
| Item B: FEIN | 87-1234567 |
| Item C: Owner Information | SHAH, PRIYA N — SSN 123-45-6789 — DL D7654321 — DOB 06/12/1990 — 742 Mission St, San Francisco, CA 94103 |
| Item D: DBA / Trade Name | N/A |
| Item E: Physical Location | 742 Mission St, San Francisco, San Francisco County, CA 94103 |
| Item F: Mailing Address | SAME AS ITEM E |
| Item G: First Wages Paid | First wages: 01/05/2026; threshold reached: 01/12/2026 |
| Item H: Estimated Annual Wages | $52,000 |
| Item I: Annual or Quarterly | Quarterly (over $20,000 cap) |
| Item J: NAICS | Private household with employees — 814110 |
| Item K: Signature | Priya N. Shah, Owner, 02/02/2026, (415) 555-0188 |
Scenario 2: Marcus Lee, Adult Child Hiring an In-Home Caregiver for an Aging Parent
Marcus’s mother needs daytime in-home care, and Marcus pays the caregiver from his own checking account starting February 1, 2026, at $28/hour for 30 hours/week. Because Marcus pays the worker, Marcus is the household employer, not his mother.
| Form Section | What Marcus Enters |
|---|---|
| Item A: Type of Organization | Individual Owner |
| Item B: FEIN | 92-7654321 |
| Item C: Owner Information | LEE, MARCUS J — SSN 234-56-7890 — DL L2345678 — DOB 11/03/1978 — 18 Maple Ct, San Jose, CA 95112 |
| Item D: DBA / Trade Name | N/A |
| Item E: Physical Location | 204 Cedar Ave, Santa Clara, Santa Clara County, CA 95050 (mother’s home, where work happens) |
| Item F: Mailing Address | 18 Maple Ct, San Jose, CA 95112 (Marcus’s home for notices) |
| Item G: First Wages Paid | First wages: 02/01/2026; threshold reached: 02/22/2026 |
| Item H: Estimated Annual Wages | $40,320 |
| Item I: Annual or Quarterly | Quarterly |
| Item J: NAICS | Private household with employees — 814110 |
| Item K: Signature | Marcus J. Lee, Owner, 03/05/2026, (408) 555-0144 |
Scenario 3: Daniel and Sofia Romero, Couple With a Part-Time Housekeeper Crossing the Threshold
Daniel and Sofia hired Elena as a part-time housekeeper at $30/hour for 8 hours/week starting January 6, 2026. They cross the $750 threshold in late February and want to register as co-owners on a single annual-filing account.
| Form Section | What Daniel and Sofia Enter |
|---|---|
| Item A: Type of Organization | Spouses/RDP Co-Ownership |
| Item B: FEIN | 45-9876543 |
| Item C: Owner Information | ROMERO, DANIEL A — SSN 345-67-8901 — DL R3456789 — DOB 05/22/1984; ROMERO, SOFIA E — SSN 456-78-9012 — DL R4567890 — DOB 09/14/1986 — both at 1428 Elm St, Berkeley, CA 94703 |
| Item D: DBA / Trade Name | N/A |
| Item E: Physical Location | 1428 Elm St, Berkeley, Alameda County, CA 94703 |
| Item F: Mailing Address | SAME AS ITEM E |
| Item G: First Wages Paid | First wages: 01/06/2026; threshold reached: 02/24/2026 |
| Item H: Estimated Annual Wages | $12,480 |
| Item I: Annual or Quarterly | Annual (under $20,000 cap) |
| Item J: NAICS | Private household with employees — 814110 |
| Item K: Signature | Both Daniel A. Romero and Sofia E. Romero, Co-Owners, 03/10/2026, (510) 555-0177 |
How to File the Completed Form
You have three filing channels, but EDD funnels nearly all new household registrations through the online portal because it is faster, cheaper, and less error-prone. Each channel below lists the exact destination, fee, payment, processing time, and proof of filing you should keep.
Online via e-Services for Business. Submit at the EDD e-Services portal after creating an employer account. There is no filing fee. No payment is due at registration; first deposits come later via DE 88. Processing time is typically 1–3 business days, often same-day during off-peak hours. Save the on-screen confirmation number and the PDF EDD emails you; that is your proof of filing.
By mail. Send the signed paper DE-1HW to Employment Development Department, Account Services Group, MIC 28, P.O. Box 826880, Sacramento, CA 94280-0001. There is no filing fee. No payment is due at registration. Processing time is 4–6 weeks, longer in January and April. Send via USPS Certified Mail with Return Receipt, and keep both the green card and your photocopy of the signed form as proof of filing.
In person. Drop off the paper DE-1HW at any EDD Employment Tax Office during business hours; the front-desk staff date-stamp a copy and hand it back. There is no fee. Processing time is 2–4 weeks because the office still routes the form to Sacramento for keying. Keep the date-stamped copy as proof of filing.
EDD no longer accepts faxed DE-1HW forms for new household registrations, so do not use the old fax number printed in third-party guides. After filing, watch your email and physical mail for two separate items from EDD: the eight-digit account-number letter and the e-Services enrollment code, which you will need to file every later return.
What Happens After You File
Within 1–3 business days of an online filing or 4–6 weeks of a paper filing, EDD mails the Employer Account Number Notice with your eight-digit account number formatted as XXX-XXXX-X. Save this number; you will write it on every DE 9, DE 9C, DE 88, and DE 3HW for the life of the account. EDD also enrolls you automatically in the DE 542 New Employee Registry, which means you must report each new household worker within 20 days of their first day of paid work.
Roughly 30 days after registration, EDD sends a UI Rate Notice setting your initial Unemployment Insurance rate at 3.4% for the first two to three years, and the Employment Training Tax rate at 0.1%, both applied to the first $7,000 of wages per worker. State Disability Insurance is withheld from the worker’s wages at the current 1.2% rate and remitted to EDD; the worker pays SDI, not you.
You then begin a recurring filing rhythm. Annual filers complete the DE 3HW by January 31 each year and make quarterly DE 88 deposits if PIT or SDI exceeds $500 in a quarter. Quarterly filers complete the DE 9 and DE 9C by the last day of the month after each quarter and DE 88 deposits on the same schedule.
If you stop employing household workers, you do not file another DE-1HW; instead, file a DE 24 Change of Employer Account Information to close the account. EDD will hold the account open for one year in case you rehire, then formally inactivate it.
Mistakes to Avoid When Filling Out the Form
Below are the 12 most common DE-1HW errors EDD’s Account Services Group cites in its rejection letters, with the direct consequence of each. Read this list before you submit.
- Leaving Item B blank or writing “applied for”; EDD suspends the account up to 90 days and may close it.
- Mixing up the Item G first-wages date with the worker’s start date; this back-dates your liability and creates a §1126 penalty.
- Checking Annual when Item H is over $20,000; EDD reverses the election and assesses a misclassification penalty.
- Skipping the second spouse’s signature on a co-ownership filing; the form is unsigned and rejected outright.
- Using an old revision (Rev. 12 or earlier); the EDD scanner rejects on the barcode mismatch.
- Listing your accountant in Item C instead of yourself; the registration converts to commercial and triggers higher tax rates.
- Writing a casual nickname in Item D; EDD searches Secretary of State, finds nothing, and bounces the form.
- Putting a P.O. Box in Item E (physical location); EDD cannot verify a California work site and rejects the form.
- Estimating Item H at zero or $1; EDD treats this as bad faith and may open a §1127 audit.
- Forgetting to update Item F when you move; rate notices and DE 542 letters get returned undeliverable, and you miss filing deadlines.
- Filing a DE-1HW when you already have a commercial DE-1; EDD merges the accounts but charges a duplicate-registration fee.
- Faxing the form; EDD discards faxed DE-1HWs without notice and you miss the 15-day deadline.
Do’s and Don’ts
A short list of habits that separate clean DE-1HW filings from the ones that get bounced.
- Do apply for your FEIN before you open the DE-1HW, because the form cannot be completed without it.
- Do file online through e-Services for Business, because online filings clear in 1–3 days versus 4–6 weeks for paper.
- Do keep proof of mailing or your e-Services confirmation, because EDD audits start by asking for it.
- Do report each new worker on the DE 34 within 20 days, because the New Employee Registry deadline runs from the worker’s start date, not the DE-1HW filing date.
- Do elect EFT for deposits, because non-EFT payments over $20,000 trigger a 15% penalty under CUIC §13021.
- Do read the Household Employer’s Guide DE 8829 once before you file, because it answers 80% of field questions.
- Don’t treat a household worker as a 1099 contractor, because the AB 5 ABC test almost always classifies in-home workers as employees.
- Don’t use your spouse’s SSN if your spouse is not on the account, because Item C ties personal liability to whoever signs.
- Don’t estimate Item H wildly low to qualify for annual filing, because year-end reconciliation will undo the election and add penalties.
- Don’t write “see attached” anywhere on the DE-1HW, because EDD’s scanner ignores attachments and treats the box as blank.
- Don’t sign Item K with a digital “/s/ Name” on the paper version, because only wet ink is accepted.
- Don’t wait past the 15-day deadline after first crossing $750, because every additional day adds interest under CUIC §1113.
Pros and Cons of Filing on Your Own vs. With Help
Most California household employers can file the DE-1HW themselves, but there are real trade-offs between DIY and hiring a payroll service or CPA. Use the bullets below to decide.
Pros of filing on your own:
- Saves $250–$600 in CPA setup fees, which is meaningful for a part-time housekeeper budget.
- Forces you to learn the EDD system, which pays off when you later file DE 9, DE 9C, and DE 3HW.
- Faster turnaround if you file online, because you do not wait on a preparer’s queue.
- Direct control over Item I (annual vs. quarterly), so you avoid a preparer defaulting you to quarterly.
- Builds your e-Services login, which you keep forever and which streamlines every future return.
Cons of filing on your own:
- Higher risk of Item G or Item H errors, which create back-tax exposure most filers don’t see coming.
- No professional review of FEIN, SSN, and DL cross-matches, which are EDD’s top rejection triggers.
- You must remember the DE 34 New Employee Registry deadline yourself, with no preparer reminder.
- You must reconcile state and federal filings (Schedule H, W-2, W-3) at year-end without help.
- If EDD opens a §1126 audit, you face it without a preparer who knows the agency’s procedures.
Annual vs. Quarterly Reporting at a Glance
The Item I election controls almost every downstream filing rhythm; the table below shows the practical differences for a typical California household employer.
| What Changes | How Annual Differs from Quarterly |
|---|---|
| Wage threshold | Annual filing capped at $20,000 estimated annual wages; quarterly has no cap. |
| Return filed | Annual filers submit one DE 3HW by January 31; quarterly filers submit DE 9 + DE 9C four times a year. |
| Deposit form | Both use DE 88, but quarterly filers see four DE 88s; annual filers see one to four depending on PIT/SDI thresholds. |
| Cash-flow impact | Annual concentrates the tax bill in January; quarterly spreads it across the year. |
| Switch flexibility | You can switch only at the start of a new calendar year via DE 89 request. |
| Penalty exposure | Annual filers risk a single large §1126 penalty if late; quarterly filers risk smaller, more frequent penalties. |
| Best fit | Annual fits low-wage part-time workers; quarterly fits full-time nannies and live-in caregivers. |
Key California Statutes and Agencies That Interact With DE-1HW
The DE-1HW does not exist in isolation; it sits inside a network of California statutes and agencies. CUIC §675 defines who is an “employer,” and CUIC §682 defines the household-worker $750 threshold. Violation of either, by failing to register, exposes you to the §1126 negligence penalty (10% of unpaid contributions) and the §1127 fraud penalty (50%) for willful failures.
The EDD Account Services Group keys the form, but the EDD Tax Branch later sets your UI rate, and the EDD Field Audit Section may audit you if Item H looks understated. On the federal side, the IRS expects you to attach a Schedule H to your Form 1040 at year-end and to issue each worker a W-2; the federal FUTA tax is separate from California UI and runs on its own deposit schedule per IRS Publication 926.
Two California programs interact most often: the California Franchise Tax Board collects PIT you withhold on behalf of your worker, and the California Department of Industrial Relations enforces the Domestic Worker Bill of Rights, which sets overtime and rest-break rules for household workers. None of these change the DE-1HW itself, but they shape your duties after the form is filed.
FAQs
Do I need a separate DE-1HW for each household worker?
No. One DE-1HW covers all household workers you employ at the same residence under the same household account, even if you hire a second nanny or a gardener later in the year.
Do I write my SSN or my FEIN in Item B?
No. Item B requires the FEIN only; the SSN goes in Item C. Substituting an SSN for the FEIN is a top-three rejection cause and stops your registration.
Do I check Annual or Quarterly in Item I if my wages might exceed $20,000?
No. Check Quarterly if estimated annual wages in Item H exceed $20,000; checking Annual over the cap forces EDD to reverse the election and may add penalties.
Do I list my nanny in Item C as a co-owner?
No. Item C is for owners of the household account, never for workers. Workers are reported separately on the DE 34 within 20 days of hire.
Do I file the DE-1HW if my only worker is my 19-year-old child?
No. Wages paid to your own child under 21 are exempt from California UI/ETT/SDI per CUIC §631, so no DE-1HW is required for that worker alone.
Do I have to register if I pay only $700 in a quarter?
No. The threshold is $750 in cash wages in a calendar quarter; below that, you have no DE-1HW filing duty for that quarter.
Do I write my mother’s address in Item E if my mother’s home is the work site?
Yes. Item E asks for the physical work site, so the address where the in-home caregiver actually works belongs there, even if you (the payer) live elsewhere.
Do I need a California driver’s license to file?
No. A California ID card or, in limited cases, an out-of-state license is acceptable in Item C, but the license number and issuing state must match the verification source EDD uses.
Do I owe federal taxes after filing the DE-1HW?
Yes. California registration does not satisfy federal duties; you still owe FICA, FUTA, and Schedule H reporting per IRS Publication 926.
Do I file an updated DE-1HW if I move to a new home?
No. Use Form DE 24 Change of Employer Account Information to update your address; the DE-1HW is a one-time registration form.
Do I attach a voided check for EFT setup?
No. EFT enrollment happens separately through e-Services or the DE 26 form, not on the DE-1HW.
Do I sign Item K electronically on the paper version?
No. The paper DE-1HW requires a wet-ink signature; only the e-Services online version accepts an electronic signature.
Do I need to register before the worker’s first day, or only after $750 is paid?
Yes. You must register within 15 days after the quarter you first pay $750 or more; you do not register on day one of employment, but you should not delay past 15 days post-threshold.
Do I write Spouses/RDP if only one spouse will sign returns?
No. Choose Individual Owner if one spouse will be the responsible party; Spouses/RDP Co-Ownership requires both signatures and shared liability.
Related reading
- Are Household Employers Required to Register for CalSavers? (w/Examples) + FAQs
- How to Fill Out California Form DE-9 (w/Examples) + FAQs
- How to Fill Out California Form DE 1 (w/Examples) + FAQs
- How to Fill Out California Form DE-1AG (w/Examples) + FAQs
- How to Fill Out California Form DE 3805 (w/Examples) + FAQs
- How to Fill Out California Form DE-89 (w/Examples) + FAQs