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).  

Employee's name

My Nanny

Employer's name

Tammy Boundy

Pay period

Monthly (12 pay periods a year)

Pay period ending date

2010-04-30

Province of employment

Ontario

Federal amount from TD1

Claim Code 1 (Minimum - 10,375.00)

Provincial amount from TD1

Claim Code 1 (Minimum - 8,881.00)


Salary or wages for the pay period

1,230.00

Total EI insurable earnings for the pay period

1,230.00

Taxable income

1,230.00

Cash income for the pay period

1,230.00

Federal tax deductions

31.60

Provincial tax deductions

16.92

Requested additional tax deduction

0.00

Total tax on income

48.52

CPP deductions

46.45

EI deductions

21.28

Amounts deducted at source

0.00

Total deductions on income

116.25

 

Net amount

1,113.75


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

Employer summary  - Effective April 1, 2009


Employee's name

My Nanny

Employer's name

Tammy Boundy

Pay period

Monthly (12 pay periods a year)

Pay period ending date

2010-04-30

Province of employment

Ontario


Federal tax deductions

31.60

Provincial tax deductions

16.92

Requested additional tax deduction

0.00

Total tax deductions

48.52

 

Canada Pension Plan deductions

46.45

Employment Insurance deductions

21.28

Total deductions

116.25

 

Employer's contribution:

 

Canada Pension Plan

46.45

Employment Insurance

29.79

 

For this calculation, remit this amount

192.49

Canada Pension Plan (CPP)

The employer's contribution is an amount equal to the total of the employee's contribution.

Employment Insurance (EI)

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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