Thousands of Canadian families employ a nanny, adult caregiver or home health professional. Did you know that by hiring a household caregiver you now have the same legal obligations that any business would have for its employees? Are you aware the CRA levies heavy fines to employers who do not follow all the rules? If you didn’t know, you are not alone.
Luckily, there is help available. This where our payroll & tax service partner, Heartpayroll, comes in.
HeartPayroll is the most used household caregiver payroll and tax service in Canada. We’ve partnered with this valuable service to offer our clients peace of mind by removing all the complications of payroll and taxes.
The company stemmed from a growing need within the caregiving industry, and emerged as the most economical solution for helping households become legal employers.
Getting set up as a household employer is an overwhelming event. In Canada, for starters, you must register with the CRA and WSIB/WCB in your province. You are also legally required to issue pay stubs with every payment, and must produce a yearly T4. There are also laws around statutory holidays, accrued vacation, and other employment law matters to contend with.
And the most frustrating part, getting any one of the numerous steps incorrect is quite expensive, as substantial fines are levied by the CRA to families who don’t follow all of the rules.
Families that deal with all this on their own need to devote a great deal of time and effort to working out the different payment scenarios and learning the rules. Unfortunately, this often results in fines for even minor, often accidental transgressions for even the most meticulous families.
HeartPayroll takes control of the complete caregiver payroll process, and we mean all of it. The service handles:
• Paying your nanny via direct deposit
• Calculation of gross and net pay, taxes, EI, and CPP
• Making and filing T4s at tax time
• Supplying the T4 Summary and T4
• Canada Revenue Agency (CRA) registration
• Remittance of all source deductions
• Creating pay stubs and receipts each period
• Calculating taxable benefit of room & board
• All paperwork needed for “landed status” caregivers
Priced at only $39.99/month and no set-up fees for all of the above, HeartPayroll is the most cost-efficient payroll service available in the marketplace, guaranteed.
Essentially, HeartPayroll manages all the ‘taxing’ tasks and questions which come with employing a nanny or other household caregiver. HeartPayroll clients will also be given a payroll expert (a real live human!) to walk them through the many questions that come up during the process of becoming a legal employer.
If you’d prefer to spend your Saturday afternoons doing something more exhilarating than dealing with the complex, opaque universe of caregiver taxes and payroll, register with our payroll & tax service partner HeartPayroll and let them take care of it all for you!