How Much Does a Nanny Cost?
Nanny

How Much Does a Nanny Cost?

by Trisha Heathcote

Part of the process of deciding whether or not to hire a nanny for your family includes considering the financial impact on your family. You know you need some help with childcare, and think that a nanny is the answer but what’s it going to cost you?

In this article, our Senior Payroll Manager and payroll expert over at HeartPayroll, Trisha Heathcote, breakdowns the cost of a live-out and live-in nanny in Canada including all the taxes deductions!


Nanny Rates in Canada

The cost of a nanny varies from job to job, and nanny to nanny. Because we’re a Canada-wide company, we see quite a range of rates for nannies in Vancouver to nannies in Halifax.

Live-in vs Live-out Nanny Costs


Cost of a Live-out Nanny

In larger cities such as Toronto, Vancouver or Calgary we tend to see the range for a live-out nanny be between $14-$18 per hour, maybe even as high as $20 per hour

Cost of a Live-in Nanny

The wage of a live-in nanny in Canada ranges between the minimum wage and $15 per hour.

In smaller communities, the rates tend to be less for both live-out and live-in nannies, but always at least the minimum wage for the province. See Provincial minimum wages

What Other Factors Should be Considered

The rate is negotiable when you are discussing your position with a potential nanny, and it is based on several factors.

  • Going rate of a nanny in your neighbourhood
  • Nanny’s experience and qualifications
  • Number of children requiring care
  • Types of duties required
  • Days and hours needed
  • Perhaps even the distance the nanny has to travel to get to your home.

Gross Pay vs Net Pay, CPP, EI and Other Deductions

When discussing wage with your nanny it is best to talk in terms of gross pay rather than in net pay.

Need to know the difference? See: Gross Pay vs Net Pay

The gross pay amount is closer to what’s going to come out of your pocket than the net pay amount, which is what goes into your nanny’s pocket. But did you know there are some additional costs on top of the gross pay you need to be aware of?

These are the employer contributions to CPP and EI, as well as any workers compensation costs which vary per province. Here are some examples:

Example Nanny Cost Breakdowns


COST OF A LIVE-OUT NANNY IN ALBERTA
$15/hour | 40 hours per week | Paid every 2 weeks

Gross pay ($15/hour x 40 hours/week x 2 weeks)

$1200

Taxes deducted (federal tax, provincial tax and employee contributions to CPP and EI)

$213

Net pay (nanny's take-home pay)

$987

Source deductions (taxes deducted, as above, plus employer contributions to CPP and EI)

$297

Total cost (your out-of-pocket expenses)

$1,284

 

COST OF A LIVE-IN NANNY IN ONTARIO
$13/hour | 44 hours per week | Paid every 2 weeks

Gross pay ($13/hour x 44 hours/week x 2 weeks)

$1,144

Taxes deducted (federal tax, provincial tax and employee contributions to CPP and EI)

$206

Room and board deducted, if applicable

$170.50

Net pay (nanny's take-home pay)

$767.50

Source deductions (taxes deducted, as above, plus employer contributions to CPP and EI)

$286
Total cost (your out-of-pocket expenses) $1,053.50

Need some help calculating costs for a live-in or live-out nanny? We can help! Call our payroll department at 1-877-416-5452, email trisha@heartpayroll.com or let HeartPayroll Caregiver Payroll & Tax Service take care of everything.

Need help on deciding whether a live-out or live-in nanny is the right choice for you? Trisha highlight’s the key differences here: How to Decide on a Live-out or Live-in Nanny

CanadianNanny.ca Nanny Payroll & Tax service is powered by HeartPayroll


Let Us Be Your Guide to Finding & Hiring a Nanny

Choosing a nanny is an important and difficult decision we have many resources to help guide you through the process of finding, interviewing, hiring, keeping and paying great nannies. We even have advice for when and how to dismiss a nanny if necessary.

For more information check out the Nanny Hiring and Nanny FAQ sections of our blog as well as our Nanny Hiring Guide.

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