In Canada, it is especially important to deduct nanny taxes. If you employ a nanny, then you must have a payroll deductions account with the Canada Revenue Agency (CRA).

In Canada, it is especially important to deduct nanny taxes. If you employ a
nanny, then you must have a payroll deductions account with the Canada Revenue
Agency (CRA).

Family employing a live-in Caregiver under live in caregiver program is
required by federal law to register as an employer with the Canada Revenue
Agency (CRA).

One must make the proper deductions for income tax, employment insurance and
Canada Pension Plan and remit these amounts to the proper federal authority.

When registering as an employer, the CRA will provide an information guide
that contains the necessary forms and instructions. The employer must comply
with the law and provide the employee with a record of employment (ROE) when the
employee’s work term has ended.

Generally, one needs to complete a T4 slip stating that a) if you are an
employer and b) you paid your employees employment income, commissions, taxable
allowances and benefits, or certain other payments.

While many parents try to avoid tax-reporting hassles by paying their nanny
under the table, you do so at your own risk. The government expects you to pay
your nanny legally, which means you’re required to pay nanny taxes. Consider
hiring a payroll service that specializes in domestic workers.

Tax4Nanny goes through the exhaustive process in calculating nanny tax
deductions, and covers all bases, so you can be assured that your nanny tax
deductions are properly filed.

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Tax4Nanny provides its clients with comprehensive tax calculations and
reporting, as well as assurance that all registration requirements are
fulfilled. A choice of a one step solution for all your tax needs or individual services are
available.