Nanny & Caregiver Payroll

We can help you set up your nanny or caregiver as a household employee and manage the payroll requirements that follow. The process generally starts with determining the worker’s employment status and registering for a CRA payroll account when required. We then set up the employee’s pay details, calculate CPP, EI, and income tax deductions, and arrange the appropriate CRA remittances. Our nanny payroll services also cover regular payroll processing, digital pay statements, direct deposit, payroll records, and year-end T4 preparation. Where applicable, we can review WSIB requirements and assist with registration, premium calculations, and filings.

We help household employers complete the payroll steps required when a nanny’s employment comes to an end. We coordinate the payroll changes connected with the employee’s departure, including processing applicable final earnings and updating the employee’s payroll records. We can also prepare the Record of Employment when required and make sure the employee’s information is properly reflected in year-end reporting. Through our nanny payroll services, families have practical payroll support throughout the termination process instead of having to work through each administrative requirement on their own. Employment-law questions or disputes fall outside our payroll advisory services, so those matters should be addressed with an appropriate legal professional.

A nanny payroll service can take care of the recurring calculations, filings, and records that come with employing someone in your home. At Ayali Pay, our nanny payroll services can include CRA payroll account registration, employee setup, payroll calculations, statutory deductions, CRA remittances, direct deposit, digital pay statements, and T4 preparation. We support full-time and part-time nannies as well as live-in and live-out caregivers, including employees whose hours change from one pay period to another. We can also review whether WSIB requirements apply and handle related registration and filings where necessary. This gives families one place to manage the payroll administration associated with being an employer.

We recommend comparing what each package actually includes throughout the year rather than looking only at the advertised payroll fee. Check whether nanny payroll services include initial CRA setup, payroll calculations, CPP and EI deductions, income tax withholding, remittances, direct deposit, pay statements, T4 preparation, and year-end filing. It is also worth asking whether WSIB support, Records of Employment, payroll changes, and access to a payroll specialist are included or charged separately. At Ayali Pay, we focus on a managed approach so household employers can understand which payroll responsibilities we handle for them. Clear pricing and included services can make different providers much easier to compare.

We review the benefit provided to a live-in nanny and apply the appropriate payroll treatment based on the nature of that benefit. Some employer-provided benefits may need to be treated as taxable benefits, which can affect the employee’s reported income and the deductions calculated through payroll. The CRA requires employers to determine whether a benefit is taxable before calculating applicable CPP, EI, and income tax amounts. Through our nanny payroll services, we can incorporate applicable benefits into payroll records and year-end T4 reporting while managing the employee’s regular wages and deductions. Because the treatment depends on the specific arrangement, we review the payroll details rather than assuming every live-in arrangement is handled the same way.

Yes. If you hire a nanny or caregiver as an employee, you are required to deduct and remit payroll taxes and comply with CRA regulations.

Employers must deduct income tax, Canada Pension Plan contributions, and Employment Insurance premiums from wages.

In some cases, yes. WSIB requirements depend on the nature of employment. We can help determine whether registration is required and assist with setup and compliance.

Yes. Employers must provide a T4 slip at year-end summarizing earnings and deductions.

Paying without proper deductions can result in penalties and non-compliance with Canadian tax laws. Structured payroll is required.