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Salary deductions

Employment insurance

Live-in caregivers in Canada are covered by Employment insurance (EI). The purpose of EI is to provide benefits to qualified workers who lose their job through no fault of their own. They may be eligible to receive benefits while they are looking for another job. The amount deducted depends on how much they earn. You must remit the deducted amount together with your contribution to the Canada Customs and Revenue Agency.

The Canada Pension Plan

(CPP) is another plan to which both you and your caregiver must make contributions.

General info about CPP

http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/isp/cpp/cpptoc.shtml&hs=cpr

You are strongly encouraged to accompany your pay cheques with a statement of earnings. This will show the gross earnings, the amount of each deduction taken from the gross pay and the purpose of each deduction.

Income tax deductions

You must deduct provincial and federal income tax from every pay cheque you give your caregiver. Every year, you must send a record of the wages and deductions to Revenue Canada Taxation. You must provide a copy of this record to you in the form of the T4 form. This form will allow the caregiver to file her income tax report by April 30 of each year. You can get the income tax form and a guide to help you fill it in at any post office.

Most common questions about taxes and answers from the Canada Customs and Revenue Agency:

http://www.ccra-adrc.gc.ca/tax/individuals/faq/menu-e.html

You are strongly encouraged to accompany your pay cheques with a statement of earnings. This will show the gross earnings, the amount of each deduction taken from the gross pay and the purpose of each deduction.