Being a Nanny

[fundmark19]

So my wife is contemplating being a nanny as her job and we are trying to figure out how it would work from a personal/business side of things. She would go to the clients house and take care of 4 kids (2 from 2different families)

I can't figure out what we need to do on her side of things to make it all legit. Do we start a business? We want to keep paying her EI taxes and everything as she hopes one day to be able to take maternity leave.

If anyone has any personal experience with this I would appreciate it

[Dentoman]

The family hiring her gets a Business number from CRA and file the payroll every month. They deduct EI, CPP and tax from her paycheque, pay the employers part as well and give your wife a T4 every year. Your wife should be treated as a regular employee .... should be that simple.
This is from firsthand experience.

[fundmark19]

So since there are 2 families involved both would file for business and pay her separately?

[KTrain]

To make it easier on the families and to give you the opportunity to have write-offs, she could operate as a sole proprietor/contractor. She would then pay into EI, CPP and taxes herself.

When she moves on to another families she won't have to go through the process of the new family setting up a company just to have a nanny.

[Dentoman]

Depends on how they arrange it between themselves I guess. They could do it that way I suppose. It would be like your wife having 2 part-time jobs then. As far as EI for maternity that wouldn't be a problem.

[Dentoman]

Originally Posted by KTrain

To make it easier on the families and to give you the opportunity to have write-offs, she could operate as a sole proprietor/contractor. She would then pay into EI, CPP and taxes herself.

When she moves on to another families she won't have to go through the process of the new family setting up a company just to have a nanny.

It is not hard to get a business number and start making payroll deductions. You don't need to set up a company ... you can do it as an individual.
If she does it this way, she should make sure she gets paid more to offset her increased costs for the employers share of EI and CPP. I am not sure there would be much for writeoffs being a nanny.

[fundmark19]

Driving kids around gas is a write off. And there is a bunch of driving kids to school

Also purchasing the snacks that she needs to provide for the kids

Those are the 2 that come to mind quickly

[KTrain]

Also, if she needs to upgrade first aid or other safety courses, those would be write-offs as well. If there's driving involved, you can also write-off vehicle maintenance and even a car wash once a month.

[Table 5]

Make sure she practices her glazed-over "I just don't give a crap about these brats anymore" face.

[fundmark19]

I was just googling and it said sole proprietors don't pay into EI so they are not eligible for it? Which would mean no maternity leave.

Half the kids are nephews so unfortunately she will always care about those brats

[Slava]

I know this is a bit of a tangent, but I would advise her to really think about it before she does it. I know that the romanticized view of it sounds great; hang out with kids, take them here and there and that kind of thing. Maybe when its cold you have a hot chocolate and when its hot you have ice cream!

In all honesty though, that's probably a really hard job. I imagine it being really isolated and frustrating. Of course, I've never done a job like that and have no real experience to lend to the conversation here, so take that for whatever its worth!

[Dentoman]

Originally Posted by fundmark19

I was just googling and it said sole proprietors don't pay into EI so they are not eligible for it? Which would mean no maternity leave.

Half the kids are nephews so unfortunately she will always care about those brats

That becomes the issue ... I never did when I was an independent contractor. Just CPP. As the owner of the business, you don't get access to EI.
It truly is simpler if she just gets treated as an employee. I doubt the writeoffs would make that big of a difference. Just get reimbursed for the gas/snacks or use the employers vehicle. Also have to think of liability if driving them around in your own vehicle with your own insurance.

[fundmark19]

Originally Posted by Slava

In all honesty though, that's probably a really hard job. I imagine it being really isolated and frustrating. Of course, I've never done a job like that and have no real experience to lend to the conversation here, so take that for whatever its worth!

Tried talking her out of it. Her sister and brother in law (whose kids it is) have tried talking her out of it. So it sounds like she is going to give it a shot. Worst case is she only needs to give 2 months notice to quit so if she really hates it she can find a real person job again.

[Locke]

Originally Posted by fundmark19

I was just googling and it said sole proprietors don't pay into EI so they are not eligible for it? Which would mean no maternity leave.

Half the kids are nephews so unfortunately she will always care about those brats

Theres lots of issues here, so its important to get good advice before you get started and I cant get into all of it on a public forum. First of all I'll say that the bolded is correct and incorrect.

On the surface of it, as a sole proprietor that is correct, however in the case of maternity there are ways of voluntarily paying into EI to remain eligible.

In terms of being a proprietor or an employee there are many things to take into consideration on both sides from both parties.

[fundmark19]

Locke you really are the worst free online accountant! Just bait enough info for the PM and my business while leaving lots of questions. I figured I would just poke around here first while I wait to hear from my actual accountant and to kill time on a Monday. You may be getting a PM though for more info if she never gets back to me!

[KTrain]

Here's some info on being self-employed paying EI: http://www.cra-arc.gc.ca/tx/ndvdls/t...0/317-eng.html

[Locke]

Originally Posted by fundmark19

Locke you really are the worst free online accountant! Just bait enough info for the PM and my business while leaving lots of questions. I figured I would just poke around here first while I wait to hear from my actual accountant and to kill time on a Monday. You may be getting a PM though for more info if she never gets back to me!

I work for 'Thanks,' Booze, Hockey tickets and Money. Never for free.

I'm always available to help out for CP.

[mrbanffgirl]

Originally Posted by Locke

I work for 'Thanks,' Booze, Hockey tickets and Money. Never for free.

I'm always available to help out for CP.

Locke definitely know his stuff when it comes to this stuff!
And i can tell you from VERY first hand knowledge, that if your wife has never worked in childcare, in is by no means an easy job! My wife runs a dayhome, and it is a full time job where the pay is not great, the hours are long and the clientele can sometime be s#!tty to deal with

[fundmark19]

Originally Posted by mrbanffgirl

Locke definitely know his stuff when it comes to this stuff!
And i can tell you from VERY first hand knowledge, that if your wife has never worked in childcare, in is by no means an easy job! My wife runs a dayhome, and it is a full time job where the pay is not great, the hours are long and the clientele can sometime be s#!tty to deal with

She is currently a pediatric dental assistant so she is used to having screaming kids all day. I think she is aware of the it won't be all rainbows and roses part but she feels like she needs a change and the pay works out to be close enough for the difference so I can't tell her not to.

Worst case scenario she hates it and goes back to working at a Dental Office since her registration is still good for a couple of years with all of her banked hours. Or she lucks out and gets pregnant and gets a year off anyways

[GGG]

Originally Posted by Dentoman

It is not hard to get a business number and start making payroll deductions. You don't need to set up a company ... you can do it as an individual.
If she does it this way, she should make sure she gets paid more to offset her increased costs for the employers share of EI and CPP. I am not sure there would be much for writeoffs being a nanny.

Flames tickets fe always a write off. Got to drum up more nanny business somehow.