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.