Can I Afford a Nanny?  Based on 40 hours per Week.

PLEASE NOTE THAT ANY NEW APPLICATIONS SUBMITTED TO SERVICE CANADA ON OR AFTER DECEMBER 1, 2014, THE EMPLOYER CAN NOT DEDUCT FOR ROOM AND BOARD.



 


Below is a sample of what it might cost to hire a In-Home Lower Skilled Occupation (nanny).  Do remember that the Gross Weekly Wage of $1120.00 is based on $14.00 per hour and a 40 hour Work Week, paid bi-weekly.  DOES NOT INCLUDE STATUTORY HOLIDAYS, VACATION PAY OR WSIB CONTRIBUTIONS.  These figures reflect the Ontario Government changes made for January 1, 2018, using claim code “1” for deductions.  (We will try and keep you up-to-date of any changes to payroll.)

 

To find this calculator on the Canada Revenue web site, follow this link:   
http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-eng.html
 

See  www.cra-arc.gc.ca for more information and an on-line calculator.  In the search engine of the web page type, "pdoc".
 


 

Sample ONLY-Payroll Deductions Online Calculator –

40 Hours per Week/Paid Bi-weekly, Claim Code 1

 

Payroll Deductions Online Calculator

 

Results  - Effective Jan 1, 2018

 

   


Salary calculation: Result
Employee's name: THE EMPLOYER
Employer's name: THE CAREGIVER
Pay period frequency: Bi-weekly (27 pay periods a year)
Date the employee is paid: 2018-01-12 (YYYY-MM-DD)
Province of employment: Ontario
Federal amount from TD1: Minimum - 11,809.00 (Claim code 1)
Provincial amount from TD1: Minimum - 10,354.00 (Claim Code 1)

Salary or wages income   1,120.00  
Total cash income     1,120.00
Taxable income for the pay period   1,120.00  
Pensionable earnings for the pay period   1,120.00  
Insurable earnings for the pay period   1,120.00  
Federal tax deduction 85.61    
Provincial tax deduction 44.89    
Total tax deductions   130.50  
CPP deductions   49.02  
EI deductions   18.59  
Total deductions     198.11
Net amount     921.89
 
Year-to-Date Amounts Inputted Value Total for this Record
Pensionable earnings 0.00 1,120.00
CPP contributions 0.00 49.02
Insurable earnings 0.00 1,120.00
EI premiums 0.00 18.59
The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory.
 
Salary calculation: Employer remittance summary
Employee's name: THE EMPLOYER
Employer's name: THE CAREGIVER
Pay period frequency: Bi-weekly (27 pay periods a year)
Date the employee is paid: 2018-01-12 (YYYY-MM-DD)
Province of employment: Ontario
Canada Pension Plan (CPP)
Employee CPP contributions 49.02  
Employer CPP contributions 49.02  
Subtotal of Canada Pension Plan (CPP)   98.04
Employment Insurance (EI)
Employee EI contributions 18.59  
Employer EI contributions 26.03  
Subtotal of Employment Insurance (EI)   44.62
Tax deductions   130.50
For this calculation, remit this amount   273.16

Canada Pension Plan (CPP)
The employer contribution is an amount equal to the total of the employee's contribution.
Employment Insurance (EI)
The employer's premium is an amount equal to 1.4 times the total of the employee's premiums, unless a reduced rate applies.
The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory.
 
 
 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

                                
                                

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The above information is based on Ontario rate of $14.00 per hour, for a 40 hour work week, paid monthly, using claim code 1, to your caregiver. (Caring Nanny Agency advises to use a professional payroll accountant to do your payroll calculations.  This is in no way the exact figures, but a guide to work by to help you calculate your bi-weekly budget for child care  expenses.)

  Therefore, the total cost to employ a Foreign  In-Home Caregiver at 40 hours per week, paid bi-weekly would be:  $921.89 net to the nanny.

 

 Canada Revenue Agency will require you to submit the Federal & Provincial Tax deductions, Canada Pension Plan and Employment Insurance that are to be deducted from your caregiver’s pay.  As an employer you will also be required to make a monthly employer for CPP & EI.  See calculation below…


THEREFORE A ROUGH EXAMPLE OF THE COST OF A IN-HOME CAREGIVER IS $921.89  (CAREGIVER'S NET MONTHLY SALARY) + $273.16 (GOVERNMENT REMITTANCE) = $1,195.05


ESTIMATED BI-WEEKLY BUDGET FOR A TEMPORARY FOREIGN IN-HOME CAREGIVER, WITH AN AVERAGE WORK WEEK OF 40 HOURS PER WEEK, IS
$1,195.05. 


PLEASE NOTE THAT THIS IS ONLY A ROUGH EXAMPLE AND SHOULD NOT BE TAKEN AS ACTUAL FIGURES.  CARING NANNY AGENCY ALWAYS ADVISES TO HIRE A PROFESSIONAL PAYROLL ACCOUNTANT WHEN CALCULATING PAYROLL, TAX DEDUCTIONS, STATURORY HOLIDAYS, VACATION, CPP AND EI DEDUCTIONS. 



Overtime Pay

You must be paid overtime pay after 44 hours of work each week. The overtime rate must be at least 1½ times the regular rate of pay.

Minimum Wage

The minimum wage is the lowest hourly rate an employer can pay an employee. Currently the minimum wage is $14.00 per hour, effective January 1, 2018.  

 

Your gross pay, before deductions, must be at least minimum wage. By law, your employer must deduct Income Tax, Canada Pension Plan (CPP), and Employment Insurance (EI) from your total pay and your employer must make CPP and EI Contributions for you.

 

If you and your employer agree that you will receive a wage greater than the minimum wage, then that is the amount you are entitled to receive.
 

Sample: In-Home Higher Skilled Occupation (Caregiver for Elder Care or Disabled).  Do remember that the Gross Bi-Weekly Wage of $15.72 per hour and a 40 hour Work Week, paid bi-weekly.  DOES NOT INCLUDE STATUTORY HOLIDAYS, VACATION PAY OR WSIB CONTRIBUTIONS.  These figures reflect the Ontario Government changes made for January 1, 2018, using claim code “1” for deductions.  (We will try and keep you up-to-date of any changes to payroll.)

 

To find this calculator on the Canada Revenue web site, follow this link:   
http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-eng.html
 

See  www.cra-arc.gc.ca for more information and an on-line calculator.  In the search engine of the web page type, "pdoc".

Salary calculation: Result
Employee's name: THE EMPLOYER
Employer's name: THE CAREGIVER
Pay period frequency: Bi-weekly (27 pay periods a year)
Date the employee is paid: 2018-01-12 (YYYY-MM-DD)
Province of employment: Ontario
Federal amount from TD1: Minimum - 00.00 (Claim code 1)
Provincial amount from TD1: Minimum - 00.00 (Claim Code 1)

Salary or wages income 1257.60    
Total cash income   1257.60  
Taxable income for the pay period 1257.60    
Pensionable earnings for the pay period   1257.60    
Insurable earnings for the pay period   1257.60  
Federal tax deduction 104.89    
Provincial tax deduction 51.38    
Total tax deductions   156.27  
CPP deductions   55.84  
EI deductions   20.88  
Total deductions   232.99  
Net amount   1,024.61  
 
Year-to-Date Amounts Inputted Value Total for this Record
Pensionable earnings 0.00 1,257.60
CPP contributions 0.00 55.84
Insurable earnings 0.00 1257.60
EI premiums 0.00 20.88
The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory.
 
 
Salary calculation: Employer remittance summary
Employee's name: THE EMPLOYER
Employer's name: THE CAREGIVER
Pay period frequency: Bi-weekly (27 pay periods a year)
Date the employee is paid: 2018-01-12 (YYYY-MM-DD)
Province of employment: Ontario
Canada Pension Plan (CPP)
Employee CPP contributions 55.84  
Employer CPP contributions 55.84  
Subtotal of Canada Pension Plan (CPP)   111.68
Employment Insurance (EI)
Employee EI contributions 20.88  
Employer EI contributions 29.23  
Subtotal of Employment Insurance (EI)   50.11
Tax deductions   156.27
For this calculation, remit this amount   318.06

Canada Pension Plan (CPP)
The employer contribution is an amount equal to the total of the employee's contribution.
Employment Insurance (EI)
The employer's premium is an amount equal to 1.4 times the total of the employee's premiums, unless a reduced rate applies.
The printed calculations created by PDOC are not intended to be used as a statement of earnings. Please contact your employment standards representative for all of the information legally required on a statement of earnings specific to your province or territory
 


 

 

 

 

 

 

 

   

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

                                
                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The above information is based on Ontario rate of $15.72  per hour, for a 40 hour work week, paid bi-weekly, using claim code 1, to your caregiver. (Caring Nanny Agency advises to use a professional payroll accountant to do your payroll calculations.  This is in no way the exact figures, but a guide to work by to help you calculate your monthly budget.  Budget for a minimum of $1,024.61   (net pay of caregiver), bi-weekly + $318.06  (tax remittance to CRA, bi-weekly) =  approximately,  $   1,342.67, bi=weekly budget. 
 

 


Overtime Pay

You must be paid overtime pay after 44 hours of work each week. The overtime rate must be at least 1½ times the regular rate of pay.

Minimum Wage

The minimum wage is the lowest hourly rate an employer can pay an employee. Currently the minimum wage is $15.72  per hour, effective Jan 1, 2018 , for this type of job.  

 

Your gross pay, before deductions, must be at least minimum wage. By law, your employer must deduct Income Tax, Canada Pension Plan (CPP), and Employment Insurance (EI) from your total pay and your employer must make CPP and EI Contributions for you.

 

If you and your employer agree that you will receive a wage greater than the minimum wage, then that is the amount you are entitled to receive.



For more details see on the Ontario Labour Laws and to learn more about other things like what days are statutory holidays, go to:
http://www.labour.gov.on.ca/english/es/

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