Nanny taxes simply too much for some parents
Nannies are in short supply these days, thanks largely to the government's decision to issue them open work permits that allow them to work outside of an employer’s home and in the field they choose. As a result, many have since given in their notice.
If you're recruiting or just trying to keep your current arrangemtens together, make sure you're up to date on the nanny tax, the tariff the government wants from those who employ such home workers.
To be onside, you need to have a payroll deductions account with the Canada Revenue Agency as well as an active file with your provincial Workplace Compensation Board. You're expected to deduct taxes at source and also required to remit employment insurance and Canada Pension Plan contributions as well.
If your nanny lives in and you're providing room and board, then the market value of the meals and accommodation must be added to their pay as a taxable benefit as well.
To wrap things up, you should have completed a T4 slip confirming all of the above last week. Lagging a bit here? New to the nanny search?
Parents pay $300 to $500 annually for services like these, a small expense compared to the $2,000 or so a month in salary and other fees it often costs to employ a nanny legally in Canada.
If you're employing a nanny, do you look after things yourself or have someone else handle the paperwork? Has this been an issue? Or are you one of those who can't find help to begin with
By Gordon Powers, MSN Money
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