Author: Michelle Kelsey

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For Parents

T4’s for Employed Nannies

 

Tax season is upon us once again, and it is important to remember that if you employed a nanny in 2022, their T4 slip is due on February 28, 2023. Filing taxes can be a daunting task, but don’t worry, we have some tips to help you get started.

First, you need to file a T4 Return for each nanny that you employed in 2022. This return should include the nanny’s Social Insurance Number, current address, 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.

Next, you need to file a T4 Summary Return for yourself as the employer. This return should include 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.

If you remitted a source deduction in 2021, the Canada Revenue Agency (CRA) will have sent you a Web Access Code. This code is essential for filing your T4 Return and T4 Summary Return online. If you did not receive this code, you can contact the CRA for assistance.

You can file your T4 and T4 Summary Returns either through a traditional paper method, Electronic Media (CD, DVD), or on the internet. Filing online is often the quickest and most convenient option, but choose the method that works best for you.

Finally, it is important to remember that the penalty for failing to distribute T4 slips to your employee or failing to file your T4 and T4 Summary Return by February 28, 2023 can be significant. The penalty starts at $100 even if you are one day late! Additional penalties and interest could also be charged, so be sure to file your returns on time.

The Nanny Solution partners with Livelihood Payroll to assist with our client’s payroll needs. If you are interested in their assistance with payroll, please visit: https://www.livelihoodpay.com/

Looking to hire a nanny? Book a consultation with one of our placement managers.

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For Nannies For Parents

Gas Reimbursement for 2023

Happy New Year! We hope the holiday season brought you joy and some time to rest. 

With each new year, change is inevitable. 

If you have a nanny that drives their own vehicle for work purposes or are a nanny that drives as part of your job, please note that the CRA has raised the government reimbursement rate. 

As of January 1st, 2023, the limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by seven cents to 68 cents per kilometre for the first 5,000 kilometres driven, and to 62 cents for each additional kilometre.

It is important to track kilometres driven for work purposes and submit them to your employer at least once per month. There are some great apps available such as MileIQ, Everlance, Triplog or you can use a good old-fashioned notebook you store in your glovebox to track your kilometres.

Remember, that unless you have an agreement set up, it is the responsibility of the employee to get themselves to and from work and mileage shouldn’t be tracked unless you are driving for work purposes.

All the best for a safe and healthy 2023!

The Nanny Solution Team

 

Need help finding a nanny? We only represent the best of the best and all the nannies have to go through a rigorous background check before we determine their eligibility of becoming a nanny with The Nanny Solution.  Have a look and see if we may be able to assist: The Nanny Solution. 

Ready to start the process? Set up a consultation call with one of our Placement Managers: Book a consultation

 

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For Nannies

What should I buy my nanny employers as a gift?

The holiday season is in full swing and many nannies are curious as to what others do for their nanny families. Buying a separate gift for each member of the family can quickly add up.  Instead, consider buying for the kids only, or another idea is to buy one gift to give to the entire family.  Here are a few suggestions if you are looking for ideas.

  • A nice ornament
  • A family board game
  • Baking
  • A calendar with pictures of the children
  • A craft you made with the children
  • A free night of babysitting
  • A book of photos of your adventures with the kids
  • Experience gifts
  • A gift you made
  • Mugs with the children’s picture
  • Movie night basket
  • Donation to a charity in their name
  • Photo blanket
  • Movie tickets
  • Bowling gift certificate for family bowling night
  • Starbucks gift basket
  • A bottle of wine
  • A poinsettia
  • Chocolate

Also, don’t feel that you have to give a gift at all!  A nice card with a heartfelt note can mean so much.  It doesn’t have to be extravagant or cost a lot of money.  Remember, it’s the thought that counts! 

 

Categories
For Parents

What should I give my nanny for Christmas?

We are flooded with calls around this time of the year, as parents wonder what the best gift is to give their Nanny. We understand that with inflation and the continued uncertainty of what the world has in store, many families are not in the same financial situation they were pre-pandemic. With this in mind, we have put together some suggestions for how to show your Nanny your appreciation this holiday season.

Remember, Nannies often see their holiday bonus as an evaluation of their worth and level of performance. Even if you can’t afford a lavish gift or substantial bonus this year, it’s important to show your Nanny how much you value them, especially during these challenging times. After all, they play an integral role in helping shape our children’s hearts and minds. 

If you can afford to give your Nanny a standard bonus, we typically suggest:

  • 1-2 weeks’ pay on top of a regular pay cheque, plus paid time off
  • Bonus pay and a personalised gift

If you are unable to give your Nanny a monetary bonus this year, here are some other suggestions:

  • Additional paid time off or an extra week of paid vacation
  • A gift card to retail, coffee, a restaurant, an event etc.  
  • Spa treatment package
  • A thoughtfully wrapped gift, or fill a stocking with several smaller gifts
  • Treat them to a nice dinner out 
  • Offer medical and dental benefits starting in January
  • Have your entire family film a ‘thank you’ video
  • Write a thoughtful holiday card
  • DIY gifts like arts and crafts made by the children
  • Wine and flowers

No matter what you decide, the important thing is to acknowledge and communicate how much you appreciate them, and to thank them for a job well done. 

Looking to hire a nanny? Contact us today!

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For Nannies

8 Important Steps to Becoming a Professional Nanny

First impressions are a BIG deal, especially when it comes to your job or career. Whether you are sending a simple email or showing up on a client’s doorstep for the first time, it is extremely important to be aware of how you are presenting yourself. At The Nanny Solution we have some great tips for our nannies on how to make sure you are representing yourself and the agency in a professional and positive manner.

  • Make sure that your email address is professional! This is something a lot of people don’t put much thought into, but when you are sending a professional email and your email address is something like “fluffybutterflies01@….” do you really think that you will be taken seriously? A good rule of thumb to stick to is to use your full name as your email address.
  • Clean up your social media pages. In today’s digital world, people will Google search you! You don’t want an employer or professional contact being able to see directly into your personal life, so make sure your privacy settings on Facebook, Twitter, Instagram, etc. Are set strictly so that you can maintain your own personal privacy.
  • When sending a work related email, always make sure you have a greeting, use correct spelling and grammar and speak professionally. It makes a big difference to start your emails with a “Hello, I hope you are having a nice day so far” and using the person’s name you are contacting. Never use slang in a work related email and always remember to proof read your email before sending it. Sending an email with misspellings and grammar mistakes comes across as careless and unprofessional. Unsure? Read your email aloud before sending, make sure that is sounds professional.
  • Be on Time! At The Nanny Solution we always stress: Punctuality is key! Arriving late and frantic will make the wrong impression, being prepared and on time is a huge component of being taken seriously in the professional world. We cannot stress this enough!
  • Be Positive! Nobody likes a “Negative Nelly”, so be conscious of the things that you say. If you want to be treated with consideration and respect, it starts with you. Treat others with respect and you will be respected. Don’t bad mouth co-workers or bosses; it just ends up making you look bad. Remember the saying, “If you can’t say something nice, choose not to say anything at all.”
  • Honesty and Communication. Be honest, even if you made a mistake, it’s ok to admit it. People are much more likely to forgive and respect you for being honest than being deceitful. It shows character to admit when you were wrong and it helps to build trust. Figure out what your communication style is and practice! Are you shy and get nervous talking face to face? Acknowledge that about yourself and practice. Try talking in front of the mirror to get better at your speaking skills. And remember, it is ok to be honest and say “I am just a bit nervous.” Being honest and proactive is definitely professional.
  • Dress professionally. In the line of nanny work, it is important to be presentable and also comfortable. Your appearance is truly the first impression you make! When going for any interview, it’s usually a standard rule of thumb not to wear jeans or flip-flops. Dress in a way that says, “I’m here to impress you and show you that I am professional and take myself seriously”, people will respond and treat you in the same way that you view and present yourself. Want to be treated professionally? Dressing like a professional is a good place to start.
  • Keep conversations work appropriate. This is definitely an important area when it comes to being a nanny. Working in someone’s home is extremely personal! Maintaining a boundary of professionalism is key. Though you may form friendships with parents and bonds with the children, remember to always remain aware that this is your job and you are in fact in a place of business, so keep you conversations appropriate for the work place.

Looking for a nanny job? Apply Today!

Categories
For Parents

Nanny Driving Your Kids? Steps to Help Ensure Safety

Nannies who have their own cars are high in demand!  When a Nanny uses his/her own car for work purposes, here are a few items to keep in mind:

  • The Nanny should keep a detailed log of the kilometres used for work and submit that log regularly (once a week, or once a month) to the employer.  This would include trips such as school runs, driving kids to activities, running errands for the family etc.
  • This log should include the date, the destination and how many kilometres were driven.  (Google Maps is a handy tool!) A simple notebook in the car is all that is needed, or there are also quite a few apps that can help track it.

The Parents should reimburse the Nanny for these kilometres at the rate set by Revenue Canada.  The current rate for reimbursement is $0.61 per km.

  • This reimbursement should not go on to the Nanny’s pay cheque as he/she should not have to pay tax on this amount.
  • The cost of getting to and from work is the Nanny’s own expense.

It is wise for the parents to provide an extra set of car seats that will remain permanently in the Nanny’s car so that the car seats are not being reinstalled each day.  This can be time consuming, but it is also a safety issue if they are not installed properly.

  • Be sure to alert the Nanny’s insurance provider that her car will be used for work as a nanny. They might advise for the Liability Insurance to be increased.

Alternatively, when the Nanny uses the family’s car to drive the children, the employers will pay for all gas and appropriate insurance.  Drive safely!

Interested in hiring a Driving Nanny? Contact us today.

Categories
For Parents

How guaranteed hours work and why they are important to nannies

 

In the Nanny industry it is standard practice to guarantee a certain number of hours to your nanny per week (or month). This guarantee of hours is a standard term used in the nanny industry which states the number of hours per week (or month) that the nanny will be available for work and is usually equal to their typical weekly schedule (for example: if the nanny works 45hrs per week, the will receive a guarantee of 45hrs per week). Depending on what province you live in, there are different provincial overtime rules set in place. In BC for example, anything over 8hrs per day or 40hrs per week (whichever comes first) is considered overtime hours and the employee is entitled to time and a half.

Banking Hours: Some families will request that their nanny ‘bank’ time to make up unworked hours that they were paid under their guarantee. This should be agreed upon in advance so that there are no misunderstandings around vacation or sick time. As the ‘middleman’ between nanny and parents, we do not suggest this type of set up in a contract as it can get messy. Not only be confusing for both parties but it can cause strain on a relationship.

An example of banking is: The Williams family employ their nanny to work Mon – Friday 8am – 4pm with a guarantee of 40hrs a week. They decide that they will take a long weekend trip and will not need their nanny for Monday & Tuesday of next week. They will still pay their nanny as per their guarantee but the nanny will ‘owe’ them 16 hrs for future babysitting hours. They request their nanny to work her regular shifts Wed – Fri, but also work the following 2 Saturdays (8-4) without any further compensation, to make up the hours.

Again, deciding in advance whether your nanny will be asked to bank hours is extremely important when negotiating your contract. The details around the banking must be laid out also. How much notice will be given to your nanny for time when they are not needed? What is the maximum amount of time that he/she can have in their ‘bank’ at one time? Who is tracking these hours? Not setting this up correctly, can have a very negative impact on your nanny/family relationship if not handled correctly.

Nanny Perspective: They are ready, willing and able to work their normal schedule from Mon – Fri 8am – 4pm. The family choses not to use the nanny, and they have a guarantee clause in their contract which states that she will be paid. This is the choice of the family if they chose not to use the nanny during their regular working hours and nannies generally feel that they shouldn’t be penalized for the decision of their employer. This can cause hostility if the nanny feels that they are always the ones bending on what was agreed upon regarding guarantees.

Banking time is a money saving for the parents but asking your nanny to complete overhaul their availability and not being mindful of the fact that they have a life outside their nanny role, may mean she walks!

Our advice; if you value your employee and are conscious of their work-life balance, you will soon find out that banking time is not the key to a successful relationship with your nanny. Keeping a record or logging who ‘owes’ what will only flaw the relationship if the nanny feels undervalued for not being paid for work outside their regular hours. Stick to the guarantees in the contract and be as detailed as possible from the get go. There is always room for give and take in any relationship, but be sure to be openly communicate any changes and don’t expect them to make up time.

If you do wish to bank hours, we strongly suggest having a cap of hours in a bank (this should never exceed a full week’s guarantee of hours) as well as a common schedule that is used to track what is worked and what is owed. You should give your nanny at least 2 weeks advance notice and the ‘option’ of when they can make up the time. Remember that they have a life outside the job!

Categories
For Parents

Should you bring your nanny on vacation?

Your vacation is supposed to be a stress-free experience. Bringing a nanny along can be the key to not only a stress-free vacation, but also one where the children are tended to while you and your spouse are able to enjoy some alone time, too. However, to ensure that your vacation is as wonderful as it should be, you will need to sit down with your spouse and your nanny prior to leaving and work out all of the minor details so that everyone is on the same page.

THE DILEMMA – TRAVEL EXPENSES

Payment Terms

You will be responsible for paying for the nanny’s room and travel expenses. In addition, meals should be considered, too. If you are staying in a hotel without a kitchen, meals will cost more than regular cook-at-home meals that the nanny is used to purchasing and making. These are certainly all topics of conversation that should be discussed prior to leaving for the vacation. You can elect to bring the nanny along while you eat out or you could provide her with a daily stipend for meals, but make sure that the stipend is fair and will feed her enough food for the area that you are staying in.

THE DILEMMA – THE NANNY’S SCHEDULE

Quite often, parents will feel that a nanny should be thankful for the opportunity to take a trip to a beautiful, luxurious place and will work as many hours as the parents demand. Unfortunately, this misunderstanding causes unhappy nannies, children and parents and may ruin vacations. Discussing the schedule and making plans ahead of time with the nanny will dispel any miscommunications and ensure a much happier and enjoyable vacation.

Schedule/Routine

You need to make sure that the nanny completely understands that although she is coming along with you on vacation, she is still on the clock, working. You also need to understand that she cannot be expected to be on the clock for the entire vacation. A routine or schedule must be made prior to the vacation and then you should come up with a way to ensure that this routine or schedule is adhered to.

For example, if your vacation is a week long and your nanny’s regular scheduled hours are from 7am to 4 pm, but you and your spouse would like to go out to dinner two nights during your vacation, you will need to come up with a compromise. Maybe you could give her a few hours off during the afternoon of those particular days so that she gets a break and then you and your spouse could enjoy two nice evenings alone without children.

If you expect her to work a few extra hours while you are enjoying your vacation, you could offer her a spa treatment, a surfing lesson, a min-gym membership or a special luncheon as a “bonus” for the extra hours worked. However, if you expect her to work more than just a few extra hours, you will want to discuss the schedule and overtime pay prior to going on vacation.

THE DILEMMA – ACCOMMODATION

To share a room or to get separate rooms? Some nannies will have no problem sharing a room with the children; however there are others who want to have the evenings “off” unless they are being reimbursed for overtime.

Sleeping Arrangements

Prior to the vacation, you will need to discuss the sleeping arrangements that you are planning to provide for the nanny. You will also need to discuss whether or not you plan to pay overtime if the nanny is expected to stay in the same room as the children. You will also want to take into consideration whether the children are sleeping through the night or not. If you have younger children who frequently wake during the night, they may want mom or dad, but if you have older children who sleep through the night and you participate in the bedtime routine, the nanny may not have a problem at all sharing a room with the children.

Discussing the schedule and the arrangements that you plan for your vacation will ensure that your family and your nanny are able to enjoy your vacation completely. Be sure to ask your nanny if she has any questions or concerns in order to clear up any miscommunications prior to travel.

Enjoy your trip!

The Nanny Solution can help find a travel nanny for your next vacation. Contact us now!

Categories
For Parents

Why nannies are NOT independent contractors

After searching for the perfect nanny, how are you going to pay them?

In determining the nanny’s status as an employee or as an independent contractor, Canada Revenue Agency does the following tests:

  1. Control: Are you specifying the work to be done? Are you specifying the working hours and are you reviewing the work that was done?
  2. Tools & Equipment: Are you retaining the right of use over the tools and equipment that the nanny uses for the work? Are you supplying the necessary equipment for the nanny to use to care of the children (e.g. high chair, crib, stroller) when the nanny is at work?
  3. Financial Risk: Are you reimbursing the nanny for costs of children activities (e.g. entrance fee for zoo, Science World or a play group)? Are you reimbursing the nanny for the costs of transportation during work time?
  4. Integration: Do you have a continuous relationship with the nanny?

If you answered “NO” to all of the above questions, your nanny is an Independent Contractor. They must supply you with an invoice and you pay them the amount that is on the invoice.

If you answered “YES” to any of the above questions, your nanny is deemed as your Employee and you are the Employer.  This is regardless of whether your nanny is full time, part time, live in or live out.

As an Employer you are responsible for providing a contract of employment for your employee. You have the right to choose the nanny/worker, and set the terms and conditions of employment. You are also responsible for making sure those terms and conditions meet the conditions required under the province’s Employment Standards Act.

Payroll requirements as an employer:

 

  • 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 starting at $100 and then $10 per day after that, up to $1000
  • 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
Categories
For Nannies

How to be the best nanny for a family during divorce

Divorce has become such a widespread issue that it affects many families nowadays. As a nanny, this means that you may encounter families and children who are facing challenges that come about due to the impact of divorce.  As each family is different, each situation that is impacted by divorce will also present different obstacles and challenges.

For example, you might be employed by a family that is currently working through a divorce or you might be employed by a family that has already been a single-parent family for many years. Both situations are affected by divorce, but they will each present their own set of challenges. You may find that the parents work well together and that you will work with both parents, even though they have been separated for many years. The father and the mother may want the best for their children, which, to them, means keeping the same person for child care.

You may, however, find that the parents do not get along well and are pursuing a very nasty divorce. You were hired before they decided to separate and they both might want to continue to use your services, but that might put you in an uncomfortable situation, right in the middle of a nasty divorce.

Regardless of the possibly volatile and emotional situation at hand, it is vital that you keep in mind your first, and foremost, responsibility: to be a constant source of support and comfort in the children’s lives. You will also need to stay impartial and professional while dealing with the parents (your employers).

Amidst the confusion, anger and emotions, these three helpful tips will provide you a way to help handle your part of the equation and keep things as constant and stable as you can for the children.

1)     Establish a clear Employment Agreement –  If the divorce occurred prior to your start of work, but you realize that there are issues that need to be addressed, be sure that these issues are part of the Employment Agreement. If, for instance, the divorce occurs in the middle of your employment with the family, you may want to discuss which parent is the actual employer and how the expectations for you will change. You need to know if it is okay to contact the other parent in an emergency situation and if there is a problem with you working for both parents. Your nanny agency can help you with these negotiations if you are uncomfortable with talking to the parents about them.

2)     Maintain consistency –  You might be the only constant thing in the life of the children right now, so it is up to you to keep a consistent schedule for them and continue to keep clear expectations for them. While they are going through this time of turmoil and confusion, you may find that the children will resort to testing their limits and acting out, even a while after a divorce has been finalized, but they want expectations and they want you to set clear boundaries for them. They want their lives to be as consistent as possible and you will be doing them a big favor by standing your ground and being unswerving. Keep your time with them as stable, normal and secure as you can.

3)     Compassion – You can help the children by providing a listening ear for them, without passing judgment or taking sides. A little bit of compassion can go a long way with children; you can provide a safe place where they can talk about their feelings – something that they may not have anywhere else at this point in time. Let them know that they can come to you to talk anytime they want and you will not judge them or tell anyone else how they feel.

Divorce definitely presents many complicated situations and causes a plethora of emotions for the parents and the children. As the nanny, you can make a difference by being a neutral part of the equation and handling the children with compassion, love and understanding while they work through the confusion that they are facing. Of course, if you encounter any of these situations and want some advice, we are here to help.