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What deductions do I get with a nanny?

14244 Views 20 Replies 7 Participants Last post by  ghostryder
Hi all,

In the past my nanny has acted as an independant contractor - she did her own taxes and we just paid her a flat rate.

In the new year I will have a new nanny who wants me to pay her taxes for her. I just went online and applied for a Business Number so that I can deduct her payroll taxes.

I want to know what expenses I can deduct. I will be providing her with breakfast and lunch, providing her with a Metropass every month, and we will be using my own house as the "daycare facility".

Can I deduct a proportion of heat, electricity, water, mortgage, property tax, and other household bills for running the business in my home? What about a proportion of my grocery bill? And the Metropass?

If anyone has any experience with this, I would love some help. I know that there are services that will figure this all out for a fee, but I would prefer to do it myself.

Thanks!
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I gotta side with MoneyGal on this one. A nanny is not a private daycare.

I also think that injuries can happen in the home as well as the office.

That said, we have a part-time nanny/mother's helper. We just pay her cash - no ei or wc or anything like that.

What happens if you have a friend visiting and they get injured on your property? What about a casual babysitter ie the teen from next door? If they get hurt does house insurance cover that sort of thing?
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