Is your Nanny and Employee or an Independent Contractor

After searching for the perfect nanny, how are you going to pay her? In determining the nanny‚Äôs status as an employee or as an independent contractor, Canada Revenue Agency does the following tests: Control: Are you specifying the work to be done? Are you specifying the working hours and are you reviewing the work that… Read more »

Payroll News for 2012

Happy New Year and Happy news to share to Small business payroll Employers.

The 2011 federal budget created a Hiring Credit for Small Business (HCSB), a one-time credit intended to stimulate new employment and support small businesses. The HCSB gives small businesses relief from the employer’s share of Employment Insurance (EI) premiums paid in 2011. The credit does this by covering the difference in Employer EI premiums from 2010 to 2011, up to $1,000.

Audit Season! Are your tax receipts in order?

April 30 was the deadline to submit personal tax returns. In the months of June, July and August, Nannies on Call’s accountants tend to get calls about clients being audited for their personal tax returns – particularly with Child care expenses.

When the Canada Revenue Agency does a personal tax audit, they concentrate on Child Care expenses because child care expenses are a direct deduction from income as opposed to a tax credit (a tax credit is normally 15% of the amount). If you employed a nanny and claimed Child Care expenses, have your receipt prepared in case Canada Revenue Agency knocks on your door.