You just started a family and have decided that you need to hire a nanny to look after your kids while you work. This is a common solution, but there are many important things you should know about how to go about the process and what financial aspects you will need to take care of when considering caregiver taxes.
Important Information for Caregiver Taxes
Never avoid taxes. Do not pay your nanny under the table. If this happens, you run the risk of being audited by the Canadian Revenue Agency. No one wants this, it is not an enjoyable process.
If the nanny is hired for a full-time position, you must calculate how much will be owed for taxes and services such as the Canadian Pension Plan and Employment Insurance. Keeping track of all of this information can be difficult, especially if you are not familiar with taxes and how the system functions. If your nanny lives in-house, additional deductions for room and board exist. It is easy to get lost in all of the rules and the taxation system is complicated.
Breathe. You’re doing great. Tax4Nanny offers caregiver tax solutions. We will compile and calculate all of the numbers for you. This will save you a lot of time and allow you to focus on paying attention to your growing family. Reporting your nannies income provides major tax credits, in some cases, these tax credits can total over $7,000 per child. Reporting your caregiver taxes is worth the hassle, but really, there will be no hassle with us. We make the process seem non-existent through our exceptional organization and dedication to providing you a trouble free experience.
Tax4Nanny offers the answers you need for all of your issues relating to caregiver taxes. We provide caregiver tax services to individuals who reside in Toronto and the GTA. Tax season can be stressful, but with our team on your side, you will learn to enjoy March and April.