Parenting & Family

Cost of a Nanny - Any one with first hand experience?

  • Last Updated:
  • Jun 28th, 2018 8:45 am
[OP]
Sr. Member
Dec 27, 2005
510 posts
58 upvotes
Toronto, ON

Cost of a Nanny - Any one with first hand experience?

Hello All,

with our second baby on the way soon, planning for when wife returns to work .

Can someone who has first hand experience breakdown some cost for me?

We have an option of both Live in or not

Assuming we can claim the Child care credit for both kids , that could be beneficial
21 replies
Deal Addict
Feb 22, 2007
1692 posts
77 upvotes
Mississauga
just went through this:

whether you have an agency help you or not, these are the costs you incur no matter what.

(assuming you are sponsoring from abroad)

LMIA (labour market impact assessment) - $1000 - paid to governement
one way flight - budget $1000 but obviously could vary

3 months private health care when they arrive = approx $130, only need 3 monhts because after that they get OHIP
WSIB = 2.6% on gross earnings - paid quarterly

employer portion of CPP and EI

if living in (which we have) - you would have increase in water/lights/some food consumption etc.

and yes everythign counts towards childcare (ticket, lmia, wages).

if you hire an agency - add another $1000 roughly to your cost.
[OP]
Sr. Member
Dec 27, 2005
510 posts
58 upvotes
Toronto, ON
pardnme wrote:
Jun 11th, 2018 12:10 pm
just went through this:

whether you have an agency help you or not, these are the costs you incur no matter what.

(assuming you are sponsoring from abroad)

LMIA (labour market impact assessment) - $1000 - paid to governement
one way flight - budget $1000 but obviously could vary

3 months private health care when they arrive = approx $130, only need 3 monhts because after that they get OHIP
WSIB = 2.6% on gross earnings - paid quarterly

employer portion of CPP and EI

if living in (which we have) - you would have increase in water/lights/some food consumption etc.

and yes everythign counts towards childcare (ticket, lmia, wages).

if you hire an agency - add another $1000 roughly to your cost.

Thank you for the detailed post . So approximately what cost are we looking at all in on a yearly basis ( after the initial cost is done )
Deal Addict
Feb 22, 2007
1692 posts
77 upvotes
Mississauga
assuming 40 hour work weeks:

minimum wage * # of hours
14 * (40 hours a week * lets say 48 weeks) = 26,880 in gross wages

then you will have the employer portion of the CPP and EI on that (not sure on those numbers off the top of my head)
WSIB for the year is 2.6% * gross = $698.88

so that is direct measurable costs

others are increase in water/gas/etc. etc.
Jr. Member
Jun 11, 2006
129 posts
109 upvotes
We had a live out nanny for a number of years. I don't remember the exact numbers, but we paid CPP, EI, WSIB as stated above. We paid more than minimum wage (going rate, which was more than for live-in nannies) though minimum wage was less at the time. We also paid for 2 weeks vacation. She worked 40 hrs a week. I believe she was entitled to an hour lunch unpaid, but because she obviously could not stop working at lunch, she worked 8hrs/day including lunch. My husband and I staggeref our schedules to accommodate this. Anything beyond x hours, you have to pay overtime (same with live in)

From what I remember, it still was cheaper to have 2 in daycare, but we had 3, and after awhile (even after only 2 were in daycare), we felt that the benefits of our nanny (who we felt was exceptional) outweighed daycare.
Deal Addict
Feb 22, 2007
1692 posts
77 upvotes
Mississauga
when you go with live out...you are generally hiring somebody that is already in Canada - they will always charge more than minimum wage.

when you sponsor - they will always be offered min wage.

10 days vacation is the law in ontario.
Deal Addict
Nov 13, 2013
1281 posts
486 upvotes
OTTAWA
pardnme wrote:
Jun 11th, 2018 9:33 pm
when you go with live out...you are generally hiring somebody that is already in Canada - they will always charge more than minimum wage.

when you sponsor - they will always be offered min wage.

10 days vacation is the law in ontario.
My experience is a bit dated as it is pre minimum wage increase. I wonder if there is now some convergence in wages. Previously the going rate was $14-$15 per hour which was substantially more than the $11 minimum. Minimum wage is now $14 per hour. It can't now be $18 per hour now?. Also assuming PCs cancel the last increase $14 per hour and no income tax seems better than $15 with income tax even assuming there will be some kind of phase in.
[OP]
Sr. Member
Dec 27, 2005
510 posts
58 upvotes
Toronto, ON
stack1 wrote:
Jun 11th, 2018 6:07 pm
We had a live out nanny for a number of years. I don't remember the exact numbers, but we paid CPP, EI, WSIB as stated above. We paid more than minimum wage (going rate, which was more than for live-in nannies) though minimum wage was less at the time. We also paid for 2 weeks vacation. She worked 40 hrs a week. I believe she was entitled to an hour lunch unpaid, but because she obviously could not stop working at lunch, she worked 8hrs/day including lunch. My husband and I staggeref our schedules to accommodate this. Anything beyond x hours, you have to pay overtime (same with live in)

From what I remember, it still was cheaper to have 2 in daycare, but we had 3, and after awhile (even after only 2 were in daycare), we felt that the benefits of our nanny (who we felt was exceptional) outweighed daycare.
agreed .. thats the thought process behind it .

we don't have to pay before/after school for our son and Daycare for the new one.. and also get help with household chores.
Deal Addict
Nov 13, 2013
1281 posts
486 upvotes
OTTAWA
paf wrote:
Jun 12th, 2018 7:49 am
agreed .. thats the thought process behind it .

we don't have to pay before/after school for our son and Daycare for the new one.. and also get help with household chores.
There is a class assumption that a nanny is better than daycare. A good daycare does become worthwhile as the child gets older. I would say around 2.5. I have three kids and all spent some time in both. A lot of skills see much better advancement in daycare. My experience is nannies spend too much time cleaning and other tasks to impress the parents (including keeping kids happy at all costs).
Deal Addict
Nov 13, 2013
1281 posts
486 upvotes
OTTAWA
paf wrote:
Jun 12th, 2018 7:49 am
agreed .. thats the thought process behind it .

we don't have to pay before/after school for our son and Daycare for the new one.. and also get help with household chores.
There is a class assumption that a nanny is better than daycare. A good daycare does become worthwhile as the child gets older. I would say around 2.5. I have three kids and all spent some time in both. A lot of skills see much better advancement in daycare. My experience is nannies spend too much time cleaning and other tasks to impress the parents (including keeping kids happy at all costs).
[OP]
Sr. Member
Dec 27, 2005
510 posts
58 upvotes
Toronto, ON
fogetmylogin wrote:
Jun 19th, 2018 7:13 am
There is a class assumption that a nanny is better than daycare. A good daycare does become worthwhile as the child gets older. I would say around 2.5. I have three kids and all spent some time in both. A lot of skills see much better advancement in daycare. My experience is nannies spend too much time cleaning and other tasks to impress the parents (including keeping kids happy at all costs).
agreed. Our son went to Montessori at age 3 and we will likely follow the same with the next one as well
Deal Expert
Aug 22, 2011
22187 posts
8835 upvotes
Ottawa
fogetmylogin wrote:
Jun 19th, 2018 7:15 am
There is a class assumption that a nanny is better than daycare. A good daycare does become worthwhile as the child gets older. I would say around 2.5. I have three kids and all spent some time in both. A lot of skills see much better advancement in daycare. My experience is nannies spend too much time cleaning and other tasks to impress the parents (including keeping kids happy at all costs).
A nanny cannot teach kids the necessary skills of socializing.
Kids at a young age learn by copying their peers.
They need to be around other kids and not stuck at home with one or two other people.
Jr. Member
Jun 11, 2006
129 posts
109 upvotes
I had a great experience with my nanny, I felt it was more like having a stay at home parent

1) we (parents) didn't have to rush out the door in the mornings. Also, because we didn't have to do pickup/dropoff, we had more time together at home.
2) they could take it easy if they weren't feeling well, and we didn't have to take time off work
3) they were able to go to places like the library, museums and swimming, parks (so not limited to daycare and their play yard)
4) they had play dates with my stay at home mom friends or other caregivers

I didn't ask my nanny to clean except during nap time. She played with them/read to them/taught them things, not just "watching" them (verified by my neighbours and other people when we weren't there). They did go to playgroups regularly and I was satisfied by the amount of interaction they got. They went into kindergarten with no problems. In any case, I think Kindergarten is plenty of time to learn any social skills if they haven't had much before.

I also had the oldest in daycare for a bit, and it was ok, nothing super bad to say about it, just much preferred the nanny over it. I did go tour a Montessori when my oldest was 15 months, but they kept calling their play as "work"...which sort of turned me off. He was only 15 months, and I felt it was too structured for him at the time.
Last edited by stack1 on Jun 19th, 2018 2:08 pm, edited 1 time in total.
[OP]
Sr. Member
Dec 27, 2005
510 posts
58 upvotes
Toronto, ON
Besides the child care expenses, are they are ways to deduct expenses over the 8K /child (16 K in our case for 2 kids ) without having more kids?
Deal Addict
Nov 13, 2013
1281 posts
486 upvotes
OTTAWA
paf wrote:
Jun 19th, 2018 12:14 pm
Besides the child care expenses, are they are ways to deduct expenses over the 8K /child (16 K in our case for 2 kids ) without having more kids?
Previously you could use camps as arts and sports activities but I don't think there is any other deduction you could use.
I suppose there are some kind of scams if you own a business or something.
Keep in mind if you have two children you can deduct $16k even if the childcare was all for one child.

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