Is your Nanny an Employee or an Independent Contractor?
After searching for the perfect nanny, how are you going to pay her?
In determining the nanny’s status as an employee or as an independent contractor, Canada Revenue Agency does the following tests:
Control: Are you specifying the work to be done? Are you specifying the working hours and are you reviewing the work that was done?
Tools & Equipment: Are you retaining the right of use over the tools and equipment that the nanny uses for the work? Are you supplying the necessary equipment for the nanny to use to care of the children (e.g. high chair, crib, stroller) when the nanny is at work?
Financial Risk: Are you reimbursing the nanny for costs of children activities (e.g. entrance fee for zoo, Science World or a play group)? Are you reimbursing the nanny for the costs of transportation during work time?
Integration: Do you have a continuous relationship with the nanny?