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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 $307.50 is based on $10.25/hour and a 30 hour work week. These figures reflect the Ontario Government changes made for April 1, 2010. 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).
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Employee's name
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My Nanny
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Tammy Boundy
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Monthly (12 pay periods a year)
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2010-04-30
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Ontario
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Claim Code 1 (Minimum - 10,375.00)
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Claim Code 1 (Minimum - 8,881.00)
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1,230.00
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1,230.00
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1,230.00
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1,230.00
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31.60
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16.92
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0.00
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48.52
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46.45
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21.28
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0.00
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116.25
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The above information is based on $10.25 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:
1113.75 minus (you may deduct up to a maximum of 369.42) 369.42 for room and board equals 744.33 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 April 1, 2009
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My Nanny
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Tammy Boundy
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Monthly (12 pay periods a year)
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2010-04-30
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Ontario
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192.49
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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.
The Total Cost per month based on 10.00 per hour at 30 hours per Week, paid monthly;
Monthly Wage to Caregiver is $744.33
Total Monthly Tax Contribution, CPP, EI 192.49
Cost per Month $936.82
Please remember that these figures are based on the Canada Revenue Agency web site that reflects their changes effective April 1, 2010. 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. If you use this example to calculate payroll for your Caregiver, you might find that you have paid too much taxes. 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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