WRITTEN BY
Deborah Shure

Not everyone is good with numbers. For some of us, figuring out how much of a tip to leave your server is a daunting task. Imagine having to figure out payroll tax deductions for your nanny!If you employ a nanny, then you know that we tend to discuss caregiver wages in terms of the paycheque amount rather than gross salary, making the payroll tax deduction calculation more complicated than normal. It also makes budgeting for childcare a challenge.

So, what should every employer of a nanny or elder-caregiver know? Secrets revealed:

• Room & Board: If your nanny is live-in, there is the taxable benefit of room & board to contend with. Think that you can leave it out because you are providing this for free? Wrong. The Canada Revenue Agency (CRA) says that if your employee is given free room & board, then the employee is receiving a taxable benefit and the fair market value of the meals and accommodation must be added to their pay. If your nanny is live-out, you may be providing transportation costs - also a taxable benefit.

• Workers’ Compensation Board: You may need to be registered with your provincial Workplace Compensation Board (WCB), depending on which province you live in. Why register? Because if your nanny injures herself in your home and you don’t have coverage, she can sue you. Better yet, you would need to pay a fortune in back-premiums, interest and penalties if the registration was mandatory.

• Keep up-to-date: Tax rates are updated semi-annually. Once in a while, minimum wage is increased, and the provincial room & board amounts are changed. Every year, the WCB updates their premium rates. Make sure you stay informed.

• Pay your taxes and premiums, and file your T4 and T4 summary on time. Failing to do so can lead to very expensive interest and perhaps also penalty charges.

So, you thought that having a nanny was going to free up some time? Not if you are spending time surfing the net, sifting through paperwork, or trying to pry payroll deduction information from your fellow-employer friends (but how do you know they have it right?). Thought of asking your accountant? Accountants generally do not provide automatic updates when taxes change. Even if they are willing to provide a breakdown, payroll is not their speciality so owing money at the end of the year is a definite possibility.

There is another option available! Shure Consulting Services specializes in payroll tax solutions for nanny and elder caregiver employers. Personalized tax deduction updates, tax bill payments, T4, T4 summary, Record of Employment, correspondence with government bodies are all part of the services provided for a fraction of the cost of having a nanny. The first of its kind in Canada, Shure Consulting Services helps employers across the country so that they can spend more time with their family, and less time number crunching. “Nanny tax frustration relief!� What a great feeling!

Shure Consulting Services is Canada’s provider of payroll tax solutions for nanny or elder caregiver employers. For your “nanny tax frustration relief”, call 1-877-NANNYTAX(626-6982), email info@nannytax.ca, or visit our website at www.nannytax.ca.

Tags: calculating, consulting, nanny taxes, payroll, services