Families with nannies and eldercare employees: It’s T4 time
Holiday season activities—check. Kids settled back in school routines—check. First month of 2018 under your belt—check that off the list too. February is here, and for those who employ nannies and caregivers for elders, that means it’s T4 time!
The five most important things to remember around T4 filing are:
- Filing deadline is February 28, 2018
If in 2017 your family had a nanny or eldercare employee, Wednesday February 28, 2018 should be marked in your calendar, as this is the deadline for T4 filing. It is very important to remember that not only do you need to give your employee a T4 by that date, but that you need to file a copy with Canada Revenue Agency (CRA) as well.
- Changes in personal information
It is prudent to ask your nanny/caregiver if any of her/his personal information has changed over the year. This includes address changes, SIN numbers and legal name changes. Having the correct information the first time is always a good idea to avoid amendments later.
- Filing options
If you are preparing the T4 on your own, you can either file online or by mail. Our Tax4Nanny recommendation is always to file online to ensure that your T4 does not get lost. To file online, use CRA T4 Web Forms. Before you start, it’s helpful to have all your information filled out on a paper form so that you are not scrambling for information when online. If filing by paper, you need to prepare both a T4 Summary and a separate T4 for each employee.
- CRA late filing penalties
CRA charges $10/day for every day your T4 is late up to $1,000. Bear in mind that the minimum late filing penalty is $100 so getting it done before February 28, 2018 is really a smart idea.
- Get help before it is too late
If you are overwhelmed with the task of preparing and filing, ask for professional help. Making sure your calculations are correct, and that all benefits are properly accounted for, is extremely important. Your nanny/caregiver will be using this form to prepare her personal taxes right away so it makes sense to get the help up front rather than amending forms and tax returns later on!