You may be considered an employer if you hire a baby-sitter and you:
•Establish regular working hours (e.g. 9 a.m. to 5 p.m.)
•Assign and supervise the work done
If you are the employer, you will be considered a sole proprietor and you will need a payroll account.
These steps will help you understand your responsibilities and how payroll works. It is important to understand each step, to ensure you are not assessed penalties, interest, and other consequences.
Step 1: Determining your status
You have to determine if you are an employer, trustee or payer.
Step 2: Opening a payroll program account
As an employer, trustee, or payer, you will need to open a payroll program account.
Step 3: Hiring employees
To find out what to do when hiring an employee, see Hiring an employee.
Step 4: Calculating deductions
You have to calculate and withhold the CPP contributions, EI premiums, and income tax deductions based on the amounts you pay your employees. You also have to calculate your share of CPP and EI. For more information, see Calculating deductions.
Step 5: Remitting deductions
You have to remit the CPP contributions, the EI premiums, and income tax you deducted, along with your share of CPP contributions and EI premiums. For more information, see Remitting payroll deductions.
Step 6: Completing and filing information returns
You have to report the employees’ income and deductions on the appropriate T4 or T4A slip. For more information, see Completing and filing information returns.
During all this process you have to keep proper records. To find out what to keep, for how long and other information, see Keeping records.