{"id":1426,"date":"2015-09-21T11:14:35","date_gmt":"2015-09-21T15:14:35","guid":{"rendered":"https:\/\/dev.sosgarde.ca\/blog\/?p=1426"},"modified":"2022-02-11T02:44:25","modified_gmt":"2022-02-11T02:44:25","slug":"helping-hand-for-nanny-payroll","status":"publish","type":"post","link":"https:\/\/sosgarde.ca\/blog\/babysitter\/helping-hand-for-nanny-payroll\/","title":{"rendered":"Helping hand for nanny payroll"},"content":{"rendered":"<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\">3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><span style=\"font-weight: 400;\">There are a few questions that I get asked by newbies to <a href=\"https:\/\/dev.sosgarde.ca\/blog\/five-things-to-consider-when-hiring-a-new-nanny\" target=\"_blank\" rel=\"noopener noreferrer\">having a nanny<\/a>. \u00a0One of them is \u201cis there anything that I can do ahead of time to make sure that the tax paperwork for my nanny is all in order before she starts working\u201d? \u00a0And the answer is \u2013 yes, help with nanny payroll!<\/span><\/p>\n<p><b>Have an understanding of how much a nanny will cost<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Budget, budget, budget &#8211; the key word in making sure that you are not going to have any cost surprises. It would be a nightmare to employ your nanny for a month and end up needing to change your childcare plans altogether because you realize it is not in your budget. \u00a0Add up her net (after tax) pay, the amount being remitted to the Canada Revenue Agency (including the employer portion of Canada Pension Plan contributions and Employment Insurance premiums), as well as any Workers Compensation Board premiums. \u00a0If you are providing any extra benefits such as a bus pass, be sure to include that in the calculation as well. \u00a0As long as the number you come up with is something you can afford, then you can go ahead with your nanny plans!<\/span><\/p>\n<p><b>Ask your employee to complete a TD1 form<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Never heard of a TD1 form? \u00a0You are not alone; but you have likely filled one out before. \u00a0The TD1 form is the <a href=\"https:\/\/dev.sosgarde.ca\/blog\/wp-content\/uploads\/2015\/09\/null-e1644547433879.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1427 size-medium alignleft\" title=\"nanny payroll - tax prep for your nanny\" src=\"https:\/\/dev.sosgarde.ca\/blog\/wp-content\/uploads\/2015\/09\/null-e1644547433879-300x199.png\" alt=\"tax prep for your nanny\" width=\"300\" height=\"199\" srcset=\"https:\/\/sosgarde.ca\/blog\/wp-content\/uploads\/2015\/09\/null-e1644547433879-300x199.png 300w, https:\/\/sosgarde.ca\/blog\/wp-content\/uploads\/2015\/09\/null-e1644547433879-768x508.png 768w, https:\/\/sosgarde.ca\/blog\/wp-content\/uploads\/2015\/09\/null-e1644547433879.png 940w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Personal Tax Credits Return that needs to be completed by your employee in certain circumstances such as when working for a new employer (you!), or if the employee wants to deduct more tax from source. \u00a0The employee will need to sign and date the form and give it to you. \u00a0If your nanny does not complete the form, you \u201cwill deduct taxes after allowing the basic personal amount only.\u201d \u00a0This document is especially important if your nanny is employed by more than one person since an employee can only claim the basic amount once. \u00a0Bottom line is &#8211; make sure you understand how income tax works!<\/span><\/p>\n<p><b>Open your account with the Canada Revenue Agency (CRA)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">You are about to set out on the trek of becoming an employer. \u00a0One of the many responsibilities of an employer is to take source deductions (tax, Canada Pension Plan premiums, and Employment Insurance premiums) from the employee\u2019s pay and remit them, along with the employer portion, to the CRA. \u00a0In order to do this, you need to have an account to remit the funds to! \u00a0Before your nanny even starts to work for you, you can prepare by opening up a business number with a payroll deductions account attached to it. \u00a0How do you do that? \u00a0You call the <a href=\"http:\/\/www.cra.gc.ca\">CRA<\/a> at 1-800-959-5525, or go to their website<\/span>. \u00a0Or, you can have nannytax.ca complete the registration for you!<\/p>\n<p><b>Employment Standards<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Make sure that you are familiar with your Provincial Employment Standards with regard to issues such as Statutory Holidays, Vacation Pay and Time, pay stub requirements, and overtime. \u00a0Each province\u2019s rules are different so visit the website applicable to where you live, and review the information carefully.<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">If you want help with your nanny\u2019s payroll taxes, you can always reach out through <\/span><a href=\"http:\/\/www.nannytax.ca\"><span style=\"font-weight: 400;\">www.nannytax.ca<\/span><\/a><span style=\"font-weight: 400;\"> or call 1-877-626-6982 and we will be more than happy to provide you with \u201cnanny tax frustration relief!\u201d<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are a few questions that I get asked by newbies to having a nanny. \u00a0One of them is \u201cis there anything that I can do ahead of time to make sure that the tax paperwork for my nanny is all in order before she starts working\u201d? \u00a0And the answer is \u2013 yes, help with [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[456,15,455],"class_list":["post-1426","post","type-post","status-publish","format-standard","hentry","category-babysitter","tag-cra","tag-nanny","tag-tax-preparation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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