Go to Login page
Your browser does not support this video.
CP11761759 | What you need to know about Drake's album "Scorpion"
CP14872238 | What to look for in an engagement diamond
CP14724332 | Money Monitor: Growing need for seniors to prepare finances
CP11766755 | What you need to know about the Fredericton shooting that left four people dead
CP16581423 | Skip the blow dry to save on salon costs
CP14668837 | How much to spend on a baby shower gift
CP14692918 | Money Monitor: How to get concert tickets for a better price
What you need to know before hiring a nanny
With sky-high daycare costs remaining out of reach for parents in many parts of the country, nannies can offer a more flexible and affordable alternative albeit one that comes with tax and legal implications. Jason Heath, a financial planner and income tax professional at Objective Financial Partners says daycare is "comparable to a mortgage payment." For families with more than one child, he said, it can make more economical sense to hire a nanny. The hourly rate for a nanny typically ranges from $15 to $20, but more experienced employees often charge up to $25 per hour. Hiring a nanny makes you an employer which means you must deduct and remit to the Canada Revenue Agency the nanny's contributions to CPP and EI, as well as paying employer contributions. CPP and EI contributions for a full-time nanny making $15 per hour would cost you about $200 per month on top of premiums to the provincial workers' compensation board. It's important to begin by setting out clear expectations about what the job will entail — vacation time, work hours and daily tasks, for example. Whether you're opting for daycare or a nanny, you can deduct up to $8,000 in childcare costs for every child age six or younger and up to $5,000 for children between seven and 16. In Quebec you can reclaim even more through a refundable tax credit, which gives back a percentage of childcare spending, depending on income.
Add to collection
Add to cart
The Canadian Press
1920px × 1080px 59MB
1/9/2020 8:30:00 PM