Register as a Domestic Employer

Registering as a domestic employer to hire a caregiver in Canada involves several steps to ensure compliance with federal and provincial regulations. Here is a detailed guide to help you through the process:

Step-by-Step Guide for Hiring a Caregiver in Canada

1. Understand Legal Obligations

• Employment Standards: Familiarize yourself with the federal and provincial employment standards that apply to hiring a caregiver. This includes minimum wage, hours of work, overtime pay, and termination notice requirements.
• Tax Obligations: Understand your responsibilities for deducting and remitting income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums.

2. Obtain a Business Number (BN) and Register as an Employer

• Canada Revenue Agency (CRA): Business Number (BN) and open a payroll account.
• You can register online through the CRA website, by mail, or by phone.
  Register for a Business Number and Payroll Account

3. Apply for a Labour Market Impact Assessment (LMIA)

• Employment and Social Development Canada (ESDC): If you are hiring a foreign caregiver, you may need to apply for an LMIA to demonstrate that there are no Canadians or permanent residents available to fill the position.
• Apply for an LMIA

4. Create an Employment Contract

• Written Agreement: Draft a written employment contract that outlines job duties, hours of work, wages, benefits, and any other terms and conditions of employment.
• Compliance: Ensure the contract complies with federal and provincial employment standards.

5. Set Up Payroll

• Payroll System Set up a system to manage payroll, including calculating wages, withholding taxes, CPP contributions, and EI premiums.
• Payroll Software or ServiceConsider using payroll software or hiring a payroll service to ensure compliance with payroll regulations.

6. Tax Withholding and Remittances

• Income Tax: Withhold federal and provincial income tax from your caregiver’s wages.
• CPP Contributions: Deduct and remit CPP contributions.
• EI Premiums: `Deduct and remit EI premiums.
• Remittance Schedule: Follow the CRA’s schedule for remitting payroll deductions. Typically, these must be remitted by the 15th of the month following the month the deductions were made.

7. Employee Documentation

• TD1 Forms: Have your caregiver complete federal and provincial TD1 forms to determine the amount of tax to be withheld.
• Social Insurance Number (SIN): Ensure your caregiver provides their SIN for payroll and tax purposes.

8. Maintain Records and Provide Pay Stubs

• Record Keeping: Keep accurate records of wages paid, hours worked, and payroll deductions for at least six years.
• Pay Stubs: Provide regular pay stubs to your caregiver showing gross wages, deductions, and net pay.

9. File Annual and Quarterly Reports

• T4 Slips: Prepare and file T4 slips and a T4 Summary with the CRA by the last day of February following the calendar year in which the wages were paid. Provide copies to your caregiver.
• T4 Information for Employers

10. Comply with Employment Standards

• Provincial Standards: Ensure compliance with provincial employment standards, including minimum wage, overtime pay, statutory holidays, and vacation pay.
• Health and Safety: Follow provincial occupational health and safety regulations to ensure a safe working environment

Resources and Additional Information

Canada Revenue Agency (CRA): For information on payroll, tax deductions, and remittances.

• CRA Payroll Information

Employment and Social Development Canada (ESDC): For information on hiring foreign caregivers and LMIA applications

• ESDC Foreign Worker Program

Provincial Employment Standards: Check your province’s employment standards website for specific requirements and resources.

• Example: Ontario Ministry of Labour

By following these steps, you can ensure compliance with Canadian federal and provincial regulations and provide a fair and professional working environment for your caregiver.

Register Here