Nannies who have their own cars are in high demand! But when a Nanny uses their own car for work purposes, you must keep some things 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:
- $0.72 per kilometre for the first 5,000 kilometres driven.
- $0.66 per kilometre for any kilometres driven beyond 5,000.
- This reimbursement should not be added 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.