Payroll for Employers of Caregivers
If you hire a nanny or elder care provider, you become an employer and the CRA will require you to withhold employee share of CPP contributions, EI premiums and income tax deductions and remit the deductions every month. You are also required to keep records of regular hours, overtime hours and vacation hours. You could hire a payroll bureau to keep track of the paperwork for you but they don’t come cheap.
SmallPayroll.ca offers a web-based software that takes care of calculating, tracking and generating payroll reports. Sean, the engineer behind the project says that he first developed the tool for his own use and then decided to polish it up a bit and put it out there. Currently, SmallPayroll.ca handles time sheets, generating payroll, past paystubs and withholding summary for each month. Sean is planning to add more features to handle taxable deductions such as room and board for live-in caregivers. He also intends to update the software as tax rules change. If you’d like to check it out, there is an one-month free trial period. The software subscription costs $5 per month thereafter.