A nanny share is an agreement between two or more families to have a nanny care for their children together, or to split the nanny's hours between them. Legally, each family is considered a separate household employer and must pay taxes to the CRA.
Shared employment of a household employee occurs when all of the following conditions are met:
- Work is performed for more than 24 hours per week
- Work is performed for more than one household at least part of the time
- Work is performed for more than one household at the same time.
When all of these conditions are met, each household is considered an employer. Each household must register for WSIB coverage for the domestic worker under a single account. Please see our FAQ on WSIB here for details.
In order to ensure that your reporting is correct in Wave, you and the family or families you are nanny-sharing with will need to make their own separate Payroll accounts in Wave. All families will have to register for a CRA business number and pay the nanny separately. You will be responsible for paying payroll taxes and remitting payments to the CRA on a regular basis.
Wave Payroll does not currently fully support this functionality (sharing an employee) and we recommend consulting a tax professional if you intend to pursue a nanny share.