Guest writer and EXPERT Deborah Shure: New EMPLOYER 'NEED TO KNOWS' - Contracts, Payroll, and CRA Requirements

When it comes to writing a blog about what a new nanny employer “needs to know” about contracts, payroll and CRA requirements, there is a lot to cover!...Here is as brief a summary as possible:

Before you start to employ a caregiver

• Make sure you are on budget.  When adding up the costs, include your nanny’s net (after tax) amount, the amount that needs to go to the Canada Revenue Agency (CRA) – and don’t forget the employer portion of CPP and EI, any Workers Compensation Board (WCB) premiums, and any benefits you are providing to her such as a bus pass.

• Have an employment contract in place – better safe than sorry!  Outline things that may even seem obvious like work duties, hours, vacation time/pay, and how much termination notice (or pay in lieu of notice) you will provide.  You can always use an employment lawyer to help create the contract!

• Review Employment Standards in your province to ensure that you are meeting the minimum requirements for wages, overtime, termination notice, vacation, and the list goes on!

• Open up a business account for the payroll deductions with the CRA.

During your caregiver's employment

• Provide your employee with a pay statement each pay period.  The information required on a paystub is provided by your provincial Employment Standards.  Common requirements include employer and employee names and addresses, the salary breakdown (gross, all deductions, and net), the hours worked, and dates of the period that was worked.

• Have the T4 to your nanny, and both the T4 and T4 summary to the CRA, by February 28 of the calendar year following payroll.

• Check in with your nanny regularly to ensure that you are on the same page with regard to the care of your family member(s).

• Make sure you pay your nanny correctly and on time, every time.

When your caregiver’s employment ends

• Be sure to pay out any vacation pay that the employee has accrued but not taken as paid time off.

• If you no longer require the services of a nanny, be sure to stick with the termination notice, or pay in lieu of notice, as outlined in your contract.

• Provide your employee with a Record of Employment (ROE).  This is mandatory regardless of whether an Employment Insurance (EI) claim is going to be made.

Not sure you can handle these things?  Well, we are here to help!  You can visit our website at www.nannytax.ca, or call at 905-326-3222 or 1-877-626-6982.  Remember – if you mention the Nanny&Me blog, you will get your first month of services free!

We look forward to providing you with “nanny tax frustration relief!”

Deborah Shure is the founder and Owner of Shure Consulting Services - Nanny Tax. As a working mother of 3 she knows first-hand how overwhelming it can be trying to manage all of the employer requirements of a nanny in addition to work and family life. For this reason, Deborah created Nanny Tax, a company that takes care of all of your nanny tax needs. Now, with over 30 years of combined financial experience, Deborah and her team are the most trusted source of nanny payroll information.  When Deborah isn't busy providing "nanny tax frustration relief", she's spending time with her 3 kids doing all of the things that supermoms do!