Most of the time, the Canada Revenue Agency, the Ministry of Labour and the courts find that nannies are considered employees and not contractors. To determine the status of the nanny in your household, you will have to answer either yes or no to the following three questions.
- Is the nanny in control: Does the nanny choose the work they do on their own, or do you specify the work to be done? Can the nanny choose her hours and do you review the work that has been done?
- What equipment does the nanny use: do you have the right of use over the tools and equipment used by your nanny for her work? Do you supply the equipment needed for the nanny to care for your children (cribs, strollers, …)?
- Is the nanny being reimbursed for costs during her work: Do you reimburs the nanny for purchase made for children activities (for example: visiting a playground)? Does the nanny get reimbursed for her transportation costs during working hours?
- Do you have an ongoing relationship with your nanny for an extended period of time?
Your nanny will be considered an independent contractor if the answer to these question was no, and she will be considered an employee of yours if the answer to these questions was yes.
However, we strongly recommend for you to obtain legal advice from a lawyer to be certain on whether the status of your nanny is one of employee or independent contractor.