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Do I have to deduct CPP/EI from a babysitter who sits for us part time so I can work?


We have a written agreement with working hours, pay and length of term.

When we came to a working agreement and we negotiated a salary, it was agreed that she would claim her pay on her income tax return and pay all necessary taxes etc. I am not sure how she can be an employee when she sets her own hours and just provides a service to us on a part time basis (25 hrs. per week).

Does she babysit for other people too? Then she is probably self-employed. If she is under 18, CPP shouldn't be deducted, even if she is an employee.

Since she's coming to you, and working under terms you have dictated, it is possible. If she were self-employed, there is often an element of risk. Let's say she was a day care provider in her own home. Subject to provincial legislation, she would be allowed to have a certain number of children into her home (let's say 5), take certain safety precautions, and make arrangements with several parents. If she has the space, she may also make arrangements to hire an additional care provider, and have additional children in her care. It sounds like you may have a nanny situation, in which case you would need to register for a Payroll number and remit accordingly.

http://www.cra-arc.gc.ca/tax/business/to...

You can always call the Business Window and get their opinion to be sure - they may recommend a ruling for you: 1-800-959-5525

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