Can I Afford a Nanny? Based on 40 hours per Week.
Below is a sample of what it might cost to hire a Foreign Live-in Caregiver. Do remember that the Gross Weekly Wage of $400.00 is based on $10.00 per hour and a 40 hour Work Week, paid monthly. DOES NOT INCLUDE STATUTORY HOLIDAYS, VACATION PAY OR WSIB CONTRIBUTIONS. These figures reflect the Ontario Government changes made for July 2009. (We will try and keep you up-to-date of any changes to payroll.)
See www.cra.gc.ca for more information and an on-line calculator. In the search engine of the web page type, "pdoc".
Sample ONLY-Payroll Deductions Online Calculator-40 Hours per Week/Paid Monthly, for months with 4 Weeks
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Payroll Deductions Online Calculator
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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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1,600.00
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Total EI insurable earnings for the pay period
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1,600.00
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Taxable income
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1,600.00
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Cash income for the pay period
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1,600.00
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Federal tax deductions
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83.40
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Provincial tax deductions
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46.43
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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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129.83
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CPP deductions
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64.76
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EI deductions
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27.68
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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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222.27
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The above information is based on $10.00 per hour, for a 40 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 40 hours per week, paid monthly would be:
1377.73 minus 369.42 for room and board equal $1008.31 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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83.40
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Provincial tax deductions
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46.43
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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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129.83
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Canada Pension Plan deductions
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64.76
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Employment Insurance deductions
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27.68
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Total deductions
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222.27
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Employer's contribution:
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Canada Pension Plan
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64.76
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Employment Insurance
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38.75
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For this calculation, remit this amount
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325.78
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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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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 about chart is provided by Canada Revenue Agency web site, at www.cra-arc.gc.ca. The numbers are based on an hourly wage of $10.00 per hour, paid monthly to the employee. The above information does not include statutory holidays, vacation pay or Worker’s Compensation.
The Total Cost per month based on 10.00 per hour at 40 hours per Week, paid monthly;
Monthly Wage to Caregiver is $ 1008.31
Total Monthly Tax Contribution, CPP, EI 325.78
Cost per Month $ 1334.09
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.
Not included in these figures are vacation pay, statutory holidays and W.S.I.B contributions. We recommend that you hire a payroll expert.
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Sample ONLY-Payroll Deductions Online Calculator-40 Hours per Week/Paid Monthly, for months with 4 Weeks
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Payroll Deductions Online Calculator
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Results - Effective July 1, 2009
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