Hiring a childcare giver at home

Last Updated:
Mar 15th, 2022 11:36 am

Tags:

SCORE

Reply to ThreadReply

Search this thread

Search this thread

Mar 1st, 2022 11:27 am

thealpevin [OP]: Newbie; Jun 14, 2020; 61 posts; 18 upvotes; Toronto

Mar 1st, 2022 11:27 am

Hiring a childcare giver at home

Hello,
I have hired a childcare giver for my kids in 2021. Which CRA forms should I use to report all these wages cost? I've already issued a T4 for the person i've hired but not sure how to report cost on my personal tax? (I have a sole propritary CRA account already).

many thanks!

8 replies

Mar 1st, 2022 3:08 pm

GoodFellaz: Temp. Banned; Jun 24, 2015; 7649 posts; 2507 upvotes; 0 downvotes

Mar 1st, 2022 3:08 pm

I don't believe you report it to the CRA, it comes out of your pocket its a personal expense, no? someone correct me if im wrong

Supermarket worker at Fortino's
I'm Not a Wise Guy but more of a Good Fella~!
Drive an Escalade

Mar 1st, 2022 4:21 pm

Macx2mommy: Deal Addict; Jan 2, 2015; 2616 posts; 2457 upvotes; NOT centre of Univer…

Mar 1st, 2022 4:21 pm

It is a child care deduction on your personal taxes. There is a max amount you can deduct based on ages and number of kids per year. Sorry I can't remember the line number.

If they child care went through your company then you treat them like an employee of your corporation and their salary comes off the corportate income tax. There are rules for this too. I only posted this last line because you posted in Entrepenuership/Small business forum.

On a 'smart' device that isn't always so smart. So please forgive the autocorrects and typos. If it bothers you, then don't read my posts, but don't waste my time correcting me. If you can get past the typos, then my posts generally have some value.

Mar 1st, 2022 4:29 pm

GoodFellaz: Temp. Banned; Jun 24, 2015; 7649 posts; 2507 upvotes; 0 downvotes

Mar 1st, 2022 4:29 pm

Then in that case you would put how much you paid your employee and list it like you would normally do for actual daycares like you do when you file your taxes
what im not sure of, is do you list net you paid them, or do you include the taxes/deductions too in the totals you report?

Supermarket worker at Fortino's
I'm Not a Wise Guy but more of a Good Fella~!
Drive an Escalade

Mar 1st, 2022 7:50 pm

Jin-n-Juice: Deal Addict; Apr 23, 2005; 1606 posts; 195 upvotes; Toronto

Mar 1st, 2022 7:50 pm

Are you paying for childcare from your business? I think T4 is only issued for employees and you've been deducting CPP, ei, withholding tax. Otherwise you would issue T4A for contractors.

If you paid from personal then just report as childcare expenses on your personal account and no T slips need to be issued.

Mar 1st, 2022 9:13 pm

GoodFellaz: Temp. Banned; Jun 24, 2015; 7649 posts; 2507 upvotes; 0 downvotes

Mar 1st, 2022 9:13 pm

some people hire a nanny to watch their kids, if this is the avenue you took, you will treat them as an employee and give them pay stubs and a T4 at the end of the year, but according to what people on here stated, it is considered a childcare expense just like a daycare or childcare facility

Supermarket worker at Fortino's
I'm Not a Wise Guy but more of a Good Fella~!
Drive an Escalade

Mar 2nd, 2022 9:23 am

GoodFellaz: Temp. Banned; Jun 24, 2015; 7649 posts; 2507 upvotes; 0 downvotes

Mar 2nd, 2022 9:23 am

some people do not have a business they just registered a payroll account to pay for a nanny, but they pay out of pocket. This is what I heard from several people

Supermarket worker at Fortino's
I'm Not a Wise Guy but more of a Good Fella~!
Drive an Escalade

Mar 2nd, 2022 10:57 am

thealpevin [OP]: Newbie; Jun 14, 2020; 61 posts; 18 upvotes; Toronto

Mar 2nd, 2022 10:57 am

Thanks everyone! I have a sole propritary business and I've already issued T4 so I will just stick to that.

Mar 15th, 2022 11:36 am

stken99: Newbie; Jul 8, 2006; 53 posts; 1 upvote

Mar 15th, 2022 11:36 am

Just a quick question on this topic

When you said that you have sole Proprietary, you are actually reporting this on your T2 business or your T2125 on your T1? This is the part that confused me.

1 - Have a payroll account and also a small business under my name. I filled T2125 every year.

2 - Should the nanny fee goes 1/2 on child care as it's issues from my Ken's RP account or that I can do the total amounts on the T2125. 50/50 or 100% in Child care expense or 100% in T2125 expense.

Cheers

Reply to Thread

Top