Legal Question in Business Law in California

You can't without breaking the law.

Use an employee leasing company.. May be cheaper in the end. They take care of all of that

As to workers' comp., you may be able to avoid it by making the employee a co-owner, but this raises a new set of problems, especially if you are now a sole proprietorship, because you'd become a general partnership (can be risky). Speak with your insurance agent (one that is familiar with workers' comp. laws in California). The subject of payroll taxes and withholding is a separate discussion, and probably not legally avoidable except, within limits, by retaining your helper as an independent contractor rather than an employee. Understanding how the taxing authorities differentiate between employees and contractors, and observing the distinction, is not al that simple, especially as you work close to the borderline. Those self-help law books on starting and running your own business would probably be helpful to you, both on this issue and on other practical problems that will arise later. (Try Nolo Press, for example; there are others).