Payroll requirements as an employer of a nanny are as follows:
- You must register for a business number with Canada Revenue Agency (CRA)
- You must provide your nanny with a wage statement (also known as a pay stub) detailing the number of working hours, salary rate and other requirements
- You must remit payroll withholding taxes to CRA. This includes the nanny’s income tax, CPP (Canada Pension Plan), EI (Employment Insurance) and the employer’s portion of CPP and EI
- You must provide a T4 to your nanny at the end of each fiscal year and file your T4 summary to the CRA by the deadline. Should you file late, you will be penalized a late fee.
- You must provide a Record of Employment to the nanny when employment is concluded
- Employers must keep payroll records including the Nanny’s name and date of birth, date the employee started work, wage rate, hours worked each day, amount and type of benefits, gross and net wages, amount and purpose of each deduction, dates statutory holidays were taken, the amount of pay earned, dates of annual vacation, and the amount of vacation pay earned. These records must be kept at the employer’s residence or a payroll company, for six years after the worker’s employment ends.
- You may have to register for Workers’ Compensation coverage for the nanny depending on the number of hours per week or which province you reside.
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