Many employers simplify their lives by using a Caregiver/Nanny Payroll Service.  This also helps them to avoid penalties and interest charges. 

If this is you, Caregiver Tax Services has a special promotion for T4 Summary online filing for only $50.  

Go Green in 2010 with Online T4 Filing.

If you employed a nanny or a caregiver in 2009, their T4 slip is due on February 28, 2010 which is only two weeks away.  It is time to get those records in order and file online.

Here are some tips to help you get started:

1. Organize your payroll records and your Statements of Account for Current Source Deductions.
2. You will need to file a T4 Return for each nanny or caregiver that you employed in 2009 and you will need to file a T4 Summary Return for yourself as the employer.
3. In order to file your nanny’s T4 Return, you will need her Social Insurance Number, her current address, her gross income and the total amounts of Canada Pension Plan, Employment Insurance, Income Tax deducted and any benefits you have paid on behalf of your nanny.
4. To file your T4 Summary Return, you will need to provide the number of T4 slips you completed, summarized totals of the amounts on each T4 slip and summarized totals of the amounts on your remittances.
5. If you remitted a source deduction in 2009, Canada Revenue Agency (CRA) will have sent you a Web Access Code.  You will need this code to file your T4 Return and T4 Summary Return online.
6. If you decide to file online, do not send CRA a paper copy.  It will confuse them!
7. The penalty for failing to distribute T4 slips to your employee or failing to file your T4 and T4 Summary Return by February 28, 2010 starts at $100 and can be as high as $1000 (assuming you had less than 50 employees in 2009).

Linh Tsiu is a CGA (Certified General Accountant) specializing in payroll and taxation to employers of nannies and caregivers.  www.caregivertax.ca