What do I need to know about paying?
You, as an employer, are responsible for paying your nanny’s tax contributions. 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. 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. If you agree to a gross wage, then deductions will come out of it.
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. Here is a step by step guide to setting up the process.
- Step 1 Contact Revenue Canada and apply for a business number.
- Step 2 List your nanny as your employee. To do that you will need her (or his) SIN number, full name and address.
- Step 3 Figure out how much you will need to remit each month. You can do this by entering the amount you have paid your nanny into the Revenue Canada payroll calculator. The calculator will tell you how much you will need to remit for taxes, EI and CPP.
- Step 4 Fill out your remittance form from Revenue Canada. This will be sent to you every month. Keep your portion of the remittance form for your records.
- Step 5 Remit your payment. You can mail in a cheque or pay remittance at your bank.
- Step 6 Manage your records. Keep your portion of the remittance form and all invoices in a file. You will need this information when you are filing your personal taxes each year.
- Step 7 Complete a T4 for your nanny. You will need to do this every year in January or February. You can complete this form online on the Revenue Canada website. After you do this, your nanny will be able to file her taxes for the previous year.
What are my legal obligations when ending the contract?
Be sure that the contract with your nanny establishes the length of notice needed if one of you wants to end your working relationship. Any penalties for not meeting that notice period should be spelled out in your contract too.
After your contract is finished, you will need to send a Record of Employment (ROE) to your nanny. Service Canada will send you a kit with the details on how to do this.
What resources can I use to help find a nanny?
FWCanada can connect you to high-quality employees and guarantees unparalleled service. We will assist you through every step of the process, including acclimating to having a caregiver in your home.
Can I help my nanny remain in Quebec after their initial work permit?
- Can renew work permit and LMIA every two years
- Can apply for PR if the nanny learns level B2 French after a certain amount of qualifying work experience in Quebec or if they have a permanent offer of employment
