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The Process of Paying Nanny and Eldercare Tax in Canada

Paying Nanny and Eldercare Tax in Canada

Livelihood undertakes various Nanny Tax and Eldercare Tax services in Canada. The Nanny Tax services include proper calculations and reporting, along with assurance that all registration requirements are fulfilled in a timely basis. Livelihood has become the one-step solution for your household payroll and carer tax needs.

The Process in Paying Nanny and Eldercare Tax in Canada

Paying Nanny Taxes and Eldercare Taxes in Canada involves a long and tedious process which Livelihood takes care of from inception. The following are some particulars of the Nanny Tax in Canada:

1. A Nanny or Eldercare Caregiver in Canada is legally considered an employee. Therefore, any family that employs a Nanny or Eldercare Caregiver is required by Federal Law to register as an employer with the CRA (Canada Revenue Agency).

2. Proper Deductions for income tax, employment insurance and Canada Pension Plan must be made. Those amounts must be remitted to the proper authority.

3. When registering as an employer for a nanny or eldercare caregiver, the Canada Revenue Agency will supply an information guide containing the necessary forms and instructions.

4. The employer must supply the nanny with an ROE (record of employment) when the employees work term has ended, in accordance with the law.

5. You must complete a T4 slip if you are an employer in Canada and confirm that you have paid your nanny/nannies employment income, commissions, taxable allowances and benefits, and any additional payments.

While the above is only a short list of particulars on the Nanny Tax in Canada it is evident that there is a tax responsibility and process that must be dealt with. 

Livelihood takes care of all the Nanny Tax details for you so that instead of dealing with tax issues you can focus on making sure your nanny is providing you with proper service.

How Livelihood Can Ease Your Nanny Tax Situations in Canada

Livelihood takes great pride in its customer service. We believe that in order to facilitate any Nanny or Eldercare Tax related issues, communication and customer care are both key elements.

Contact us today for anything Nanny or Eldercare Tax related in Canada.