Tax Guide for Families
Everything you need to know about T4 forms and tax obligations when hiring caregivers in Canada
✅ You MUST issue T4s if:
- You pay a caregiver $500 or more in a calendar year
- The caregiver provides care in your home
- You control how, when, and where the work is done
❌ You DON'T need T4s if:
- •You pay less than $500 in the year
- •The caregiver is an independent contractor with their own business
- •Care is provided through an agency
A T4 Statement of Remuneration Paid is a tax document that shows how much money you paid an employee during the year. Think of it like a receipt that proves income for tax purposes.
The T4 shows:
- • Total amount paid to the caregiver
- • Income tax deductions (if any)
- • CPP contributions (if any)
- • EI premiums (if any)
- • Your information as the employer
Register as an Employer
Get a payroll account with CRA if you don't have one already.
Keep Accurate Records
Track all payments made to your caregiver throughout the year.
Consider Deductions
Decide whether to deduct income tax, CPP, and EI (optional for some situations).
Issue T4 by February 28, 2026
Provide the T4 slip to your caregiver and file a copy with CRA for 2025 income.
February 28, 2026
Last day to give T4 slips to employees for 2025 income
February 28, 2026
Last day to file T4 Summary with CRA for 2025 income
Throughout 2025
Track payments and maintain records
December 31, 2025
Tax year ends - calculate totals
Q: Do I need to deduct taxes from my caregiver's pay?
A: It depends. If you pay more than certain thresholds, you may need to deduct income tax, CPP, and EI. For occasional or part-time care under these thresholds, deductions may be optional. Consult with CRA or a tax professional for your specific situation.
Q: What if I forgot to issue a T4 from previous years?
A: You can still file late T4s. Contact CRA to discuss your situation and any potential penalties. It's better to file late than not at all.
Q: Is my nanny considered an employee or contractor?
A: If you control how, when, and where the work is performed in your home, they're likely an employee. If they have their own business, set their own rates, and work for multiple families, they might be a contractor.
Q: What records should I keep?
A: Keep records of all payments, hours worked, any deductions made, and the caregiver's personal information. CRA recommends keeping these records for at least 6 years.
Q: How does Care Carry help with T4s?
A: Care Carry automatically tracks your payments to caregivers and can generate T4 forms when needed. We'll remind you of important deadlines and help ensure you stay compliant with CRA requirements.
Still Have Questions?
Tax obligations can be complex. When in doubt, it's always best to consult with a tax professional or contact the Canada Revenue Agency directly.