From experience, we know that it can be difficult for nannies to talk about legal payroll practices with families in Canada.
Nannies: If you’re working with a family who’s reluctant to comply with the tax obligations of your employment, reaching out for expert advice can make a difference.
Families: You should know that there are shared benefits to legally paying your Nanny.
Here’s what you need to know:
- Canadian Tax Benefits for Employers: By legally employing and paying a nanny, families can access tax deductions such as the Canada Child Benefit (CCB) and the Child Care Expense Deduction (CCED), potentially lowering their annual tax obligations.
- Mandatory Wage Reporting: Employers are obliged to report nanny wages and withhold taxes, complying with Canadian tax laws.
- Workers’ Compensation and Liability Protection: Registering for workers’ compensation not only helps nannies in case of workplace injuries but also protects employer families from legal liabilities.
- Access to Government Benefits: Official employment enables eligibility for Canada Pension Plan (CPP) contributions, Employment Insurance (EI), and healthcare benefits, securing nannies’ long-term financial well-being.
- Establishing an Employment History: A documented record of a nanny’s employment is essential for personal financial milestones in Canada, like obtaining a mortgage, bank loans or credit.
If you’re a family looking to hire a regular nanny in Canada, contact us today.
Need help setting up legal payroll for your nanny? Visit Livelihood Household Payroll for more information on how they can assist with nanny payroll and tax services in Canada. They offer a streamlined and compliant solution for families and nannies alike. And make sure you tell them The Nanny Solution sent you!