Hiring a nanny

[jinneebhat]

Looking for a nanny in Toronto for my kids. Found one asking 500 per week cash. My kids are under 2 yrs.
Is it illegal to pay by cash in this country? I heard its a hassle calculating nanny salary and tax

 

[scylla]

Yes - it's illegal since you are evading taxes and other payments. But there are certainly people who do it.

 

[jinneebhat]

Yes - it's illegal since you are evading taxes and other payments. But there are certainly people who do it.

Thanks
If the nanny is expecting CAD 500 per week gross. How would I calculate the net cost to me?
Also.. they say you get 7000 per child for tax deductions. Are those deductions only viable when I show the expenditures on childcare?
Meaning .. is it tax beneficial for keeping a nanny legally vs keeping it on cash

 

[scylla]

CRA has a payroll deduction calculator here:

http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/pdoc-eng.html

If you pay cash, you cannot claim the 7K in child tax deductions.