Can I Afford a Nanny?
Below is a sample of what it might cost to hire a Foreign Live-in Caregiver. Do remember that the gross weekly wage of $300.00 is based on $10.00/hour and a 30 hour work week. These figures reflect the Ontario Government changes made for July 1, 2009 If you use this example for every month, you will have paid too much taxes. We recommend you hire a payroll expert. (We will try to stay current with any changes).
Sample ONLY-Payroll Deductions Online Calculator for 30 Hours per Week/4 Weeks in the Month/Paid Monthly
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Results - Effective July 1, 2009
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Employee's name
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Caring Live-in Caregiver
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Employer's name
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Tammy Oxley
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Pay period
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Monthly (12 pay periods a year)
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Pay period ending date
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2009-08-28
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Province of employment
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Ontario
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Federal amount from TD1
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Claim Code 1 (Minimum - 10,375.00)
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Provincial amount from TD1
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Claim Code 1 (Minimum - 8,881.00)
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Salary or wages for the pay period
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1,200.00
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Total EI insurable earnings for the pay period
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1,200.00
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Taxable income
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1,200.00
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Cash income for the pay period
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1,200.00
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Federal tax deductions
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27.40
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Provincial tax deductions
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13.53
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Requested additional tax deduction
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0.00
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Total tax on income
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40.93
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CPP deductions
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44.96
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EI deductions
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20.76
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Amounts deducted at source
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0.00
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Total deductions on income
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106.65
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The above information is based on $10.00 per hour, for a 30 hour work week, paid monthly to your caregiver.
From the net amount listed above, you may deduct up to a maximum of $369.42 per month for room and board of your Live-in Caregiver.
Therefore, the total cost to employ a Foreign Live-in Caregiver at 30 hours per week, paid monthly would be:
1093.35 minus 369.42 for room and board equals 723.93 per month net pay to your Live-in Caregiver, for the months that there is 4 weeks in a month.
Canada Revenue Agency will require you to submit the Federal & Provincial Tax deductions, Canada Pension Plan and Employment Insurance that are to be deducted from your caregiver’s pay. As an employer you will also be required to make a monthly employer for CPP & EI. See calculation below…
Payroll Deductions Online Calculator
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Employer summary - Effective July 1, 2009
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Employee's name
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Caring Live-in Caregiver
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Employer's name
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Tammy Oxley
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Pay period
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Monthly (12 pay periods a year)
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Pay period ending date
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2009-08-28
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Province of employment
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Ontario
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Federal tax deductions
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27.40
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Provincial tax deductions
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13.53
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Requested additional tax deduction
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0.00
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Total tax deductions
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40.93
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Canada Pension Plan deductions
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44.96
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Employment Insurance deductions
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20.76
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Total deductions
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106.65
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Employer's contribution:
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Canada Pension Plan
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44.96
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Employment Insurance
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29.06
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For this calculation, remit this amount
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180.67
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Canada Pension Plan (CPP)
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The employer's contribution is an amount equal to the total of the employee's contribution.
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Employment Insurance (EI)
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The employer's contribution is an amount equal to 1.4 times the total of the employee's premiums, unless a reduced rate applies.
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The employer's contribution is an amount equal to 1.4 times the total of the employee's premiums, unless a reduced rate applies.
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The Total Cost per month based on 10.00 per hour at 30 hours per Week, paid monthly;
Monthly Wage to Caregiver is $723.93
Total Monthly Tax Contribution, CPP, EI 180.67
Cost per Month $904.60
Please remember that these figures are based on the Canada Revenue Agency web site that reflects their changes effective July 1, 2009. These figures are also based on a wage that is paid monthly and not weekly or bi-weekly. Please see www.cra-arc.gc.ca for more details. We recommend you hire a payroll expert.
Not included in these figures are vacation pay, statutory holidays and W.S.I.B contributions.
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