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Hire a nanny to look after the kids, or your first helper for a shop, and you’ve become an employer. That means deductions, remittances, slips and a few rules about time off. This page is a map: find the question you’re stuck on, then jump to the guide or calculator that answers it. It’s an information site, so nothing here prepares or files anything for you.
A small example. Maya in Winnipeg hires a part-time helper for her bakery. Before the first shift she needs to know whether the helper is an employee, what the minimum wage is, and how the first pay run works. The sections below take those questions in turn, and most hiring problems start with one of them.
Am I really an employer, and how do I set up payroll?
Start with who the worker is. Someone who works under your direction, on your schedule, is usually an employee, and that includes a nanny in your home. Once you have an employee, you register a payroll account with the CRA and follow its pay-and-remit routine. The CRA’s payroll section is the official starting point. If you’re unsure whether a worker is an employee or a contractor, settle that before the first payday, since it decides everything that follows.
- Nanny Payroll in Canada: What You Pay, Owe and Hold Back
The household version, with a worked biweekly example.
- Nanny Payroll Calculator for Every Province in Canada
Enter the hourly rate and hours to see the true cost to the family.
- Employees vs Contractors in Canada: Tax Differences
Read this first if you are not sure which one you are hiring.
- Setting Up Payroll for a Small Canadian Business
From the payroll account number to your first pay run.
What comes off each cheque, and when do I send it in?
Each pay run you work out CPP, EI and income tax, hold it back, add your employer share and send it to the CRA by the due date. The pages below explain the rules, and the calculators do the arithmetic. Get the habit right early: hold the deductions back every pay run, never treat them as spending money, and write down what you owe as you go. Money held back isn’t yours, and the CRA treats it that way.
- CRA Payroll: What Employers Deduct and When to Pay
The three duties and the remittance deadlines.
- Employer Payroll Deductions in Canada: What You Owe
What the employer side adds on top of the wage.
- How to Account for CPP and EI Contributions
How to record both halves of the contributions.
- Payroll Deductions Calculator for All Provinces
Gross pay in, deductions out.
- Payroll Remittance Calculator for Employers
Estimate what you owe the CRA for a pay period.
How much must I pay, and what about time off?
Pay floors, overtime and holidays are set province by province, so the numbers differ. Check the rules for the province where the work is done, not where your head office sits. The table shows where to start, and the list goes deeper.
- Ontario Minimum Wage and Every Province Compared
Check the floor before you set a rate.
- Overtime Pay Calculator for Your Province
Overtime for your province, hour by hour.
- Vacation Pay Calculator: Weeks Off and Pay by Province
Weeks of vacation and the pay that goes with them.
- How to Calculate and Account for Vacation Pay
Why you should set money aside every month.
- Public Holiday Pay Calculator for Canada
What a stat holiday adds to a paycheque.
- Overtime and Stat Holiday Pay in Canadian Payroll
How to record both in your books.
| If you need to… | Start here |
|---|---|
| Set a pay rate | Minimum wage by province |
| Price out overtime | Overtime pay calculator |
| Budget for time off | Vacation pay calculator |
| Pay for a stat holiday | Holiday pay calculator |
What slips and records do I owe at the end?
When the year is done you issue T4 slips, and when someone leaves you issue a Record of Employment. Keep your records tidy all along, because the CRA can ask to see them. A simple folder, paper or digital, with each pay run, each remittance and each slip saves a lot of scrambling later.
- T4 Slip Explained: Boxes, Checks and Fixes
What each box means before you file.
- T4 and ROE Reporting Rules for Canadian Employers
Both deadlines in one place.
- Payroll Record Keeping Rules for Canadian Employers
What to keep, and how to keep it.
- Bookkeeping Basics for Canadian Small Businesses
A simple routine for the books behind the payroll.
- Can You Do Your Own Bookkeeping in Canada?
When doing it yourself is fine.
What if I’m still not sure where to begin?
Start with the first list, work down in order, and use the table as a quick reference. If a rule in your situation looks different from what’s written here, a payroll professional or the CRA itself can confirm it for your case.
Frequently asked questions
Is a nanny an employee in Canada?
Almost always, if the nanny works in your home on your schedule. That makes you an employer with payroll duties. Our nanny payroll article walks through it.
What do I have to send the CRA when I pay an employee?
You hold back CPP, EI and income tax from each cheque, add your employer share of CPP and EI, and remit the total by the due date. See the CRA payroll page.
How much vacation pay does an employee get?
It is at least 4% of gross wages at first, rising to 6% after a set number of years that varies by province. Use the vacation pay calculator for your province.
When are T4 slips and ROEs due?
T4 slips are due on or before the last day of February after the year. An ROE has its own, much shorter deadline. Our reporting rules page lists both.