Category Archives: Nanny Payroll/Taxes

Ask the Nanny Expert Part 1

When you hire a nanny, you become an employer and we realize that this is a huge responsibility and can be a daunting title.  With the help of the agency staff, and an accountant, you will realize that there are resources available to you. You must follow the rules set out by Revenue Canada and […]

Tax tips for contractors/on call nannies

Paying Taxes as a Contractor. Get Organized Today!
As an on call nanny, you are considered a contractor, so rather than paying taxes throughout the year, you pay your taxes in one lump sum at tax time.
Even though tax season is behind us for this year, if you start getting organized NOW, cutting that cheque to Revenue Canada next spring, will not hurt as much.

Remember that ALL income must be declared!

Nanny Year End Tax Tips

For today’s nannies, getting ready for tax time can be daunting. Sorting through a mountain of paperwork is a most unwelcome chore to anyone with work commitments and family obligations. Whether you do your taxes personally or simplify your life by using a professional accountant, you must collect, sort and organize the required documents.

The following tips will help ease the stress of tax season.

1. Locate the necessary forms and papers and store them together in a file folder or envelope. Your folder should include:

Payroll News for 2012

Happy New Year and Happy news to share to Small business payroll Employers.

The 2011 federal budget created a Hiring Credit for Small Business (HCSB), a one-time credit intended to stimulate new employment and support small businesses. The HCSB gives small businesses relief from the employer’s share of Employment Insurance (EI) premiums paid in 2011. The credit does this by covering the difference in Employer EI premiums from 2010 to 2011, up to $1,000.

Hiring Grandma as the Nanny

Question:
I have a 1 year old daughter. I started work a month ago and I’m leaving my baby with my mom. I want to pay her $400 monthly …she didnt wanto to accept any payment but we agreed on that amount. Does my mom have to count that income for taxes? Can I claim her pay as a childcare expense? Should I hire her as a nanny? Do I have to apply for a business number?

Audit Season! Are your tax receipts in order?

April 30 was the deadline to submit personal tax returns. In the months of June, July and August, Nannies on Call’s accountants tend to get calls about clients being audited for their personal tax returns – particularly with Child care expenses.

When the Canada Revenue Agency does a personal tax audit, they concentrate on Child Care expenses because child care expenses are a direct deduction from income as opposed to a tax credit (a tax credit is normally 15% of the amount). If you employed a nanny and claimed Child Care expenses, have your receipt prepared in case Canada Revenue Agency knocks on your door.

Have you filed your Nanny’s T4 yet?

If you employed a nanny in 2010, their T4 slip is due on February 28, 2011 which is today.

Here are some tips to help you get started if you haven’t done so.

Organize your payroll records and your Statements of Account for Current Source Deductions.
You will need to file a T4 Return for each nanny that you employed in 2001 and you will need to file a T4 Summary Return for yourself as the employer.

How Much of a Raise Should I Give My Nanny?

This is a topic that is so very subjective; it’s incredibly tough to give the best advice on giving raises to a nanny, because each situation is extremely different. Undoubtedly, if you have the most spectacular nanny in the world, there is no way that you can pay her enough for the tender love and care that she devotes to your children.

Nanny Payroll Promotional Offer

Our Payroll Service is a comprehensive approach to serving the unique needs of household employers. We perform tax calculations, filings, remittances, provide advice on labour law and manage your payroll account with Canada Revenue Agency and the Canadian Workers’ Compensation Board. Our selections of services allow you to choose what is right for you.

Is your Nanny an Employee or an Independent Contractor?

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?