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Discussion Starter #1
I havent had time to do all the research. so hoping to get some luck on the forum:

As I understand, the expense can be written off the lower income earning spouse.


1) if we are going through the live-in caregiver program, can we list both of us (me and wife) as the employers or just the spouse with lower income?

2) if we list only one employer, when applying for a business number from CRA, should we get a number sole ownership or is a partnership number good enough?
 

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1. Just the lower income-earning spouse, unless some special conditions apply. Here's the CRA form you will use on your taxes.

2. I'm not sure that you need a business number (in fact, I'm virtually certain that you do not). You will be an employer, not a business; and you need a payroll number, not a business number. There is no place on your income taxes that you would need to enter a business number...you are not opening a business of any kind.
 

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I had to do this in January becuase I hired a new nanny who wanted me to do her taxes (my old nanny worked as a contractor and did her own). I called the CRA, told them I was hiring a nanny and asked them what was required, and this was what they said : I was required to create a business account, get a business number and payroll number and use this to pay my nanny's taxes each month (on the 15th, after the month you pay her). You can call the CRA yourself - they are actually pretty helpful.

Ther were lots of services online that would handle your nanny's taxes for you, but they are a complete rip-off. It really isn't a big deal to figure out and do yourself - once set up it took me less than 10 minutes every month.
 

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1) if we are going through the live-in caregiver program, can we list both of us (me and wife) as the employers or just the spouse with lower income?

2) if we list only one employer, when applying for a business number from CRA, should we get a number sole ownership or is a partnership number good enough?
The first part doesn't really matter. You'll get a business number from CRA and request a payroll account on that business number. That'll start the monthly stream of requests for withholdings.

Come tax time, you'll add up everything you paid and claim it on the lower income earner's return (unless they were a full time student). You don't need to give a B/N or anything.

Sean
 

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Ther were lots of services online that would handle your nanny's taxes for you, but they are a complete rip-off. It really isn't a big deal to figure out and do yourself - once set up it took me less than 10 minutes every month.
I've seen these services go for between $350 and $600 per year (and up), depending on how much work you do vs how much they do. If you're paying a live in nanny only 20K which is maybe 23K after various additions, it's not a whole lot extra to not have to worry about payroll. If you go through a payroll bureau it is going to be a rip off, as they're not built for this type of situation.

I was in the same situation as you though, and ended up writing a web application to do it a lot of the work. For me, it was more an issue of tracking the paperwork as the math is pretty easy. When our nanny left, I opened it up for other people to use. I don't charge much, I hope some people find it to be an option in between doing it yourself and paying for someone else to do it - http://smallpayroll.ca
 

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Discussion Starter #8
thanks sean. i will look at your tool when the nanny comes in, which would me next march...
 
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