When you are paying your nanny, even if it is for a few days in 2013, you still need to submit a T4 summary. They are easy to fill online, if you keep payroll records so I have been doing mine myself. If you need help, it should take an accountant very little time to help you with these.
All the instructions are available in text and video on the Canada Revenue Agency website section on T4s. The one key requirement that I find is not as clearly explained as it should be is:
You need to give a T4 to your nanny directly AND send a copy to Canada Revenue Agency, otherwise the penalty for filing late is $10/day missed! (Tell your friends - click to tweet here)
Unfortunately Canada Revenue still holds families employing a nanny to the same standard as big corporations with accountants on staff. I have tried to get them to understand that not only is government not helping with how expensive childcare is, but they are also making it unnecessarily complicated to hire the help we need at home. Sigh… No luck so far, but have not given up!
Alexandra T. Greenhill, MD, Mother of three, CEO myBestHelper
Posted: February 25, 2014