One of the objections to nannies is that, in a one-on-one situation, there is no other adult present in the home to make sure that the caregiver is doing her job. You'll need to plan spot-checks. You and your partner may want to stop in at home at different times of the day to see how things are going. One woman who did that got an unpleasant surprise. She discovered her eight-month-old daughter peacefully asleep in her crib. The nanny, however, was nowhere to be found. She had put the baby down for a nap and gone out shopping.
Becoming an employer
As soon as you hire a nanny or caregiver to work in your home, you become an employer, subject to many of the same rules and regulations that govern any employment situation. Revenue Canada requires you to report your employee's income, making all the proper deductions in a timely fashion. The paperwork may be an annoyance, just one more task for you to do in an already hectic schedule, but it's essential.
Hours of work and wages are set by the provincial Ministry of Labour. Most provinces require employers to pay nannies at minimum wage. In Ontario, for example, minimum wage is $6.85 an hour. Depending on where you live in Canada, you may also have to pay an employer's health tax. And don't forget vacation pay and statutory holiday pay. The deductions you make on behalf of the nanny are determined by Revenue Canada. Prior to the end of the first month of employment, you must visit a Revenue Canada office and fill in an application. You will be assigned a business number. After you file your first tax remittance, Revenue Canada will automatically send statements to you each month to fill out and pay by the fifteenth of each month.
Cost
The sample is based on Ontario's minimum wage of $6.85 an hour and a work week of 44 hours, the maximum time you can have an employee work before you must pay time-and-a-half
Sample Distribution of a typical Nanny's Weekly Pay in Ontario
Weekly wage: $301.40
Deductions:
Canada Pension Plan 6.85
Employment Insurance 8.74
Federal taxes 42.15
Net Pay: $243.66
Room and board $85.25
Nanny's take-home pay is: $158.41
This is the maximum you can charge for a private room and 21 meals a week, and you cannot charge for meals she does not take.
In addition, employers resident in Ontario have to pay worker's compensation (gross earnings x .215) and match the Canada Pension Plan and Employment Insurance contributions deducted from the nanny's salary.
