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 $277.50 is based on $9.25/hour and a 30 hour work week.  These figures reflect the Ontario Government changes made for January 2008  (We will try to stay current with any changes).  

The term sample is for the week ending March 7, 2008  to the week ending March 28, 2008, paid weekly.  A four week pay period.

Gross Pay                         $277.50  Employer Cont.

  Minus deduct. of

  Federal Tax                -  8.71
  Provincial Tax           -  3.81
  CPP                            - 10.40   CPP           10.40
  EI                              -  4.80    EI             6.72      
After Taxes Deduct. 249.78                    17.12
Minus Room & Board    85.25      
 Net Pay                    $164.53

Therefore Tax contribution by Employee Weekly is 
27.72=(8.71+3.81+10.40+4.80)
                   Tax contribution by Employer Weekly
 is  17.12=(10.40+6.72)
                             Total Weekly Contribution by both
Employee/Employer $44.84= (27.72+ 17.12)

Total money out of pocket works out as follows:

4 Week Pay Period/paid weekly for the month of March 2008.

4 (number of weeks) x 44.84( Total Tax Contribution)
             Equals  179.36plus
4 (number of weeks) x 164.53( Weekly Net Pay)
              Equals   658.12Therefore, Monthly 
  Total monthly tax contribution    179.36plus
  Total monthly net pay                  658.12
                                                       837.48

  Minus                                            $100.00  Per child
                                                                       under the
                                                                       age of 
                                                                       six.
                                           (Universal Child Tax Credit)
                                                            U.C.T.C.

Childcare might end up being      $738.88less, 
                                                                       depending on
                                                                       the # of 
                                                                       children that
                                                                       qualify for
                                                                       U.C.T.C. 

For more information on payroll, you can visit Revenue Canada Agency at www.cra-arc.gc.ca or call 1-800-959-5525.  For an on-line calculator, go to www.cra.gc.ca and in the search box, type "pdoc".  Select the first tab and use the government calculator to determine your deductions.  Caring Nanny Agency International Inc. encourages you to always consultant an expert regarding your payroll.  We would refer Bottomline Payroll and Bookkeeping at 905-999-7250.

Sample does not include the cost associated with Worker's Compensation and Employee's 4% vacation pay.  

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