How to Pay Your Caregiver

A step-by-step guide on setting yourself up as the employer of your new caregiver.

  • Step 1 Contact Revenue Canada and apply for a business number.
  • Step 2 List your nanny as your employee. To do that you will need her (or his) SIN number, full name and address.
  • Step 3 Figure out how much you will need to remit each month. You can do this by entering the amount you have paid your nanny into the Revenue Canada payroll calculator. The calculator will tell you how much you will need to remit for taxes, EI and CPP.
  • Step 4 Fill out your remittance form from Revenue Canada. This will be sent to you every month. Keep your portion of the remittance form for your records.
  • Step 5 Remit your payment. You can mail in a cheque or pay remittance at your bank.
  • Step 6 Manage your records. Keep your portion of the remittance form and all invoices in a file. You will need this information when you are filing your personal taxes each year.
  • Step 7 Complete a T4 for your nanny. You will need to do this every year in January or February. You can complete this form online on the Revenue Canada website. After you do this, your nanny will be able to file her taxes for the previous year.

Negotiating the immigration system can be confusing for all parties involved. But, with the right guidance, you can be on your way to caring for others or getting the care you need. For any additional questions, fill out the form to your right or call us at +1 514-316-3555 for a free consultation.