After you do this, your nanny will be able to file her taxes for the previous year.īecoming an employer may be daunting at first. You can complete this form online on the Revenue Canada website. You will need to do this every year in January or February. You will need this information when you are filing your personal taxes each year. Keep your portion of the remittance form and all invoices in a file. You can mail in a cheque or pay remittance at your bank. Keep your portion of the remittance form for your records. Step 4 Fill out your remittance form from Revenue Canada.The calculator will tell you how much you will need to remit for taxes, EI and CPP. You can do this by entering the amount you have paid your nanny into the Revenue Canada payroll calculator. Step 3 Figure out how much you will need to remit each month.To do that you will need her (or his) SIN number, full name and address. Step 2 List your nanny as your employee.Step 1 Contact Revenue Canada and apply for a business number.Here is a step by step guide to setting up the process. So in addition to following your province's employment standards, you are required to remit taxes, make contributions to employment insurance and the Canada pension plan on your nanny's behalf. If you agree a gross wage, then deductions will come out of it. If this is the case, you will have to pay income tax, CPP, EI and in most provinces, workplace insurance contributions, on top of that figure. Many nannies agree to their salaries on the basis of a net figure, which is the remainder of cash after all deductions have been taken. What do I need to know about paying my nanny?Īll nannies are employed, rather than self-employed, which means that you, as an employer, are responsible for paying your nanny's tax contributions. Your contract with your nanny will need to address most of the above issues. Be sure to ask at your province's ministry if you are in doubt. This varies from province to province, for example it is mandatory in Ontario but employers of domestic workers are exempt from buying this kind of insurance in Alberta. Some provinces require that you buy workplace insurance in case your nanny is involved in a workplace accident. Usually the regulations cover things like minimum wage, legal working hours, overtime pay, time off including leave, stat holidays, personal days and vacation pay. Your province's Ministry of Labour will list any regulations for this type of employment on their website. Nannies are usually categorized as domestic workers. You must meet the employment standards for your home province. What are my legal obligations as an employer to a live out nanny? Remember that your nanny is depending on you to be a conscientious employer and, if you do not treat them well, they might move to an employer who does. It shows that you recognize your nanny's professional status and will help maintain good relations between you. If you get stuck, Revenue Canada and your provincial Ministry of Labour office will point you in the right direction.ĭon't underestimate the importance of getting the paperwork right. If all this talk of employment law and tax matters makes you go weak at the knees, help is available. What do I need to know?Īs an employer, you will have to meet certain obligations, not only in terms of paying tax, contributing to the Canada Pension Plan, Employment Insurance, and buying workplace insurance, but also by meeting minimum standards of employment. I am thinking of employing a live out nanny in Canada. What are my legal obligations when ending a contract with my nanny?.What do I need to know about paying my nanny?.What are my legal obligations as an employer to a live out nanny?.I am thinking of employing a live out nanny in Canada.
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