Parenting & Family

how much do you pay your live-in nanny?

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  • Oct 4th, 2012 1:38 pm
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[OP]
Member
Jun 18, 2009
437 posts
6 upvotes

how much do you pay your live-in nanny?

I'm hoping to get some clarification on the way salary is calculated for a live-in nanny. From what I've see, NET pay in GTA for a live-in caregiver is 1000 - 1400$ / month. How do you get to this number? Do you deduct room & board after or before you've calculated income tax / CPP / EI?


If I've done this calculation correctly, a gross salary of 1700 / month works out to just under 1100 / month for the nanny in her pocket. Then the employer remits nanny's income tax, CPP, EI and employers EI, CPP + WSIB.
39 replies
Jr. Member
User avatar
Apr 14, 2009
166 posts
15 upvotes
Vaughan
Do people actually deduct room and board, I can't imagine people would do that.
[OP]
Member
Jun 18, 2009
437 posts
6 upvotes
Yes, R/B is deducted by every employer I know that sponsors under the live in caregiver program - the amount is specified by the government.

Some questions:
As an employer of a live-in caregiver:
- how much vacation do you give? 2 weeks seems standard
- how many sick days do you allow?
- do you pay overtime? cash or through CRA payroll? at what rate?
- did you build in a raise / bonus at the beginning of your term with the nanny (e.g. pay goes up x % after 6 months?).
- what CLAIM CODE do you use for federal and provincial deductions on the CRA payroll calculator?

Thanks.
Deal Addict
Dec 18, 2009
1335 posts
311 upvotes
Toronto
You have to pay your live in nanny minimum wage which is $9.50 per hour. You then deduct income tax, CPP and EI from those wages. You also have to pay a portion of CPP-equal to employee and 1.4% of EI as well.

You need to remit to Revenue Canada every month-but if you are a good remit-er they will allow you to remit quarterly. Oh, you also have to have a business number and even do T4s-groan!!!

Room and board are totally separate and have nothing to do with wages. The maximum you can charge is $369.40-roughly per month. A live in should have her (or his) own room with a lock...everything else is usually shared.

If you are thinking of applying for an LMO to bring in a nanny from another country you have to give her (or him) at least $10 per hour and they have to work fulltime-in Ontario that is 30 hours a week.

I have been through this before so any questions feel free to ask!
Deal Addict
Dec 18, 2009
1335 posts
311 upvotes
Toronto
sorry, missed these
Some questions:
As an employer of a live-in caregiver:
- how much vacation do you give? 2 weeks seems standard
2 week is industry standard-you MUST pay this amount per year
- how many sick days do you allow?
By law you don't have to give any PAID sick days
- do you pay overtime? cash or through CRA payroll? at what rate?
overtime has to be paid at 1.5% of hourly rate (time and a half) after 44 hours of work per week. You need to pay it through payroll and not cash as this is illegal-if you do something udner the table with your caregiver do not advertise it
- did you build in a raise / bonus at the beginning of your term with the nanny (e.g. pay goes up x % after 6 months?).
raises are at the discretion of the employer-you don't ever have to give one-unless minimum wage increases
- what CLAIM CODE do you use for federal and provincial deductions on the CRA payroll calculator?
google this-you can even get annotatable T4s to fill in.
[OP]
Member
Jun 18, 2009
437 posts
6 upvotes
hoponpop wrote:
Jan 23rd, 2010 7:15 pm
You have to pay your live in nanny minimum wage which is $9.50 per hour. You then deduct income tax, CPP and EI from those wages. You also have to pay a portion of CPP-equal to employee and 1.4% of EI as well.

If you are thinking of applying for an LMO to bring in a nanny from another country you have to give her (or him) at least $10 per hour and they have to work fulltime-in Ontario that is 30 hours a week.

So ...is this correct? If you hire through the federal live in caregiver program (i.e. you go through LMO process), then you must pay $10.00 - irrespective of what minimum wage is in your province? I'm assuming this would apply to any foreign worker - whether "you" bring them over or they are already here. That's how I understand it to be.

Has anyone worked raises / bonuses into the original contract? Wondering if it's smart to do that.
Newbie
Oct 29, 2008
7 posts
Richmond Hill
Yes, the min. wage for a live-in caregiver is $10/hour BUT it is going to be raised to $10.50/hour at March 31, 2010!

I don't know anyone that put bonus/raises into the contract.... but if you REALLY want to.. then go ahead : )
creamsoda wrote:
Jan 23rd, 2010 8:55 pm
So ...is this correct? If you hire through the federal live in caregiver program (i.e. you go through LMO process), then you must pay $10.00 - irrespective of what minimum wage is in your province? I'm assuming this would apply to any foreign worker - whether "you" bring them over or they are already here. That's how I understand it to be.

Has anyone worked raises / bonuses into the original contract? Wondering if it's smart to do that.
Member
May 21, 2008
306 posts
8 upvotes
JEP07 wrote:
Jan 24th, 2010 8:50 am
Yes, the min. wage for a live-in caregiver is $10/hour BUT it is going to be raised to $10.50/hour at March 31, 2010!

I don't know anyone that put bonus/raises into the contract.... but if you REALLY want to.. then go ahead : )
Creamsoda, I didn't work a raise into my contract. Did someone give you that idea? I'd rather wait and see and give her a raise if you think its necessary. Looking back, my contract was very vague...

I get confused about the minimum wage increases. When my nanny started, I paid her $9.50 per hour. Last March min wage went up to $10 /hour so I increased her wage. She actually told me that none of her nanny friends got a wage increase at that time. My friend who has a nanny said that when the minimum wage changes it only applies to new nannies who are hired after that time and that I wasn't obligated to increase my nanny's wage... :confused: Why would that be true?
Member
May 21, 2008
306 posts
8 upvotes
Here, I'll answer these for you...
creamsoda wrote:
Jan 22nd, 2010 7:26 pm

Some questions:
As an employer of a live-in caregiver:

- how much vacation do you give? 2 weeks seems standard
Yes, I wrote in the "minimum" which is 2 weeks after 1 year has been completed. She wound up getting more than that, 'cause we went away for 1 week during the first year, and we gave her the odd day off here and there. Officially, she has only taken 1 week of her vacation, and has another one available.

- how many sick days do you allow?
I wrote 2 days into the contract. The first year she didn't take any days. This fall she was quite sick but only took 1 day off even though I insisted she take more...

- do you pay overtime? cash or through CRA payroll? at what rate?
We have never needed her for overtime. I have heard that some friends just pay cash, but not sure...

- did you build in a raise / bonus at the beginning of your term with the nanny (e.g. pay goes up x % after 6 months?).
No. (see post above)

- what CLAIM CODE do you use for federal and provincial deductions on the CRA payroll calculator?
Claim code 1. The minimum one.

Creamsoda, have you started your hunt yet? Have you decided if you are going to use an agency or try on your own?
[OP]
Member
Jun 18, 2009
437 posts
6 upvotes
I've started the hunt on my own. Posted on canadiannanny and other sites and word of mouth. With help from RFD folks and others, I think I've managed to understand the logistics and process well enough. I have some flexibility with timing so I thought I'd start on my own. See how far I get. If I'm having issues dealing with government or finding the right person, then I guess I'll go through and agency and cough up the 1000 bucks or whatever the fee might be.

Thanks for the comments, all. I"m open to recommendations if anyone has one that might want to join a family in GTA.
[OP]
Member
Jun 18, 2009
437 posts
6 upvotes
L_Mo wrote:
Jan 24th, 2010 9:12 am

I get confused about the minimum wage increases. When my nanny started, I paid her $9.50 per hour. Last March min wage went up to $10 /hour so I increased her wage. She actually told me that none of her nanny friends got a wage increase at that time. My friend who has a nanny said that when the minimum wage changes it only applies to new nannies who are hired after that time and that I wasn't obligated to increase my nanny's wage... :confused: Why would that be true?
Funny ... I spoke to someone at the federal government office this past week about live-in caregiver program and they said no increases are planned for the prescribed wage in the program.
Member
Aug 10, 2005
247 posts
11 upvotes
Thornhill
We have haired a live in nanny for the first time a few months ago and I am just trying to make sure that we are going about the payments correctly. She came from overseas but was already in Canada when we hired her.

So to double check, is the min wage for a live in caregiver $9.5 or $10 in Ontario?

As well, what portion of my pay to the caregiver can I claim for my tax under the child care: Gross, Gross minus tax, EI, CPP or Net after deducting room and board?

And finally how do I produce a T4 for the nanny?
Deal Addict
Dec 18, 2009
1335 posts
311 upvotes
Toronto
Minimum wage currently in Ontario is $9.50 per hour BUT if you are in the process of hiring a live in caregiver you need to pay them $10 per hour. So I think the $9.50 is ok for now-until minimum wage goes to $10 in March.

For T4s go to the CRA or HRDCs website-you can start at the service canada website...do a search and you can find an annotatable pdf of a T4. You need this for your employee (nanny) If you can't find let me know and I will try to provide a link.

Creamsoda. You can do it on your own-don't bother with an agency-many are corrupt and take thousands from the workers. If you want to hire someone from outside Canada then you need to advertise on Jobbank for a minimum of 2 weeks. If you want someone already in Canada try kijiji I got a lot of hits from that site-and it's free.

When are you looking to hire? If you hired outside Canada it can take years (our first nanny took close to 2 years to arrive)
[OP]
Member
Jun 18, 2009
437 posts
6 upvotes
hoponpop wrote:
Jan 24th, 2010 9:44 pm
Minimum wage currently in Ontario is $9.50 per hour BUT if you are in the process of hiring a live in caregiver you need to pay them $10 per hour. So I think the $9.50 is ok for now-until minimum wage goes to $10 in March.

For T4s go to the CRA or HRDCs website-you can start at the service canada website...do a search and you can find an annotatable pdf of a T4. You need this for your employee (nanny) If you can't find let me know and I will try to provide a link.

Creamsoda. You can do it on your own-don't bother with an agency-many are corrupt and take thousands from the workers. If you want to hire someone from outside Canada then you need to advertise on Jobbank for a minimum of 2 weeks. If you want someone already in Canada try kijiji I got a lot of hits from that site-and it's free.

When are you looking to hire? If you hired outside Canada it can take years (our first nanny took close to 2 years to arrive)
TWO YEARS?????????????????? Yes, the issue of corruption is huge and so unfair to the caregivers. In talking to caregivers who were "brought" here, it's sad to hear what some have been through.

I think there may be some confusion ... my understanding is even if your caregiver is already in Canada, if they still need sponsorship (many do to complete their 2 years worth of hours), then you will still need to go through a LMO and apply under the live in caregiver program. Which means, you still need to advertise on the national job bank (and another site / source) and pay 10.00 / hour.

Check this site out ... this is what made me believe that the prescribed provincial minimum wage has nothing to do with what the nanny gets pad UNDER THE LIVE IN CAREGIVER PROGRAM. http://hrsdc.gc.ca/eng/workplaceski ... dreq.shtml

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