Answers

FAQ

Questions about your caregiver

? Do I need to do payroll if my caregiver is part-time?
The short answer is yes. If you employ a caregiver in any capacity, that makes you an employer. This means, like any employer, you are required to remit your employee's deductions of income tax, and CPP and EI premiums to the CRA, along with your portion of CPP and EI premiums.

? Do I need Worker’s compensation for my caregiver?

The requirements for worker’s compensation can vary by province, but it's generally in both your and your caregiver's best interest for you to have workers' compensation insurance. Contact us and we'll be happy to give you more information specific to your province.

? What is the average wage for a caregiver per hour?

This depends on a variety of factors such as where you live, specifics of the job as well as skills and experience of the caregiver. Our experts can provide a more specific range based on these factors.

? What's the difference between Net and Gross pay?

Net pay is the amount paid after all employment deductions have been made, such as federal and provincial income tax, CPP, and EI premiums. Gross pay is the amount calculated before these deductions. Most wages are assumed to be gross unless specified otherwise.

? What is the full cost of hiring a caregiver?

The full cost of a caregiver is the sum of the caregiver’s gross wage, employer CPP and EI premiums, and worker’s compensation.

Questions about HeartPayroll's service

? Can HeartPayroll handle workers' compensation insurance for me?

This depends on the province you are located in. If you are located in Ontario or BC, we can remit the worker’s compensation premiums on your behalf and report payroll earnings for an additional $10 per month. If you are located in Alberta or Manitoba, we can assist you with the initial registration and annual payroll report for a one-time fee of $50 + tax but you would be responsible for paying the premiums directly as they are required upfront for the full year.

? What if I already have a CRA business number?

Simply let us know what it is, the business name registered with it and if a payroll deductions account number is already registered (which adds RP0001 at the end of your business number). 

? Can I pay my employee with a lag?

Yes! We offer employers an option during the registration that they can choose to pay with a 1-week lag or they pay current. Paying with a 1-week lag means the end of the pay cycle is 1 week before the pay date whereas current means the pay cycle ends ON the pay date. We recommend the lag if your employee works fluctuating hours or if you want to be sure the hours are worked already by the time we need to process payroll. Employers who expect little changes typically choose to pay current. For example, if the weekly pay date is Friday, June 30, the lag pay cycle would be June 17-23 and the current pay cycle would be June 24-30.

? Do you generate pay stubs for my employee each pay period?

Yes. We upload the pay stub and receipt to your online account 1-2 days prior to the pay date and your employee can also access their pay stub on their online account.

? What if I need to change my employee's pay for one pay period?

Not a problem. We send you an email 1 week prior to the pay date so you can reply letting us know what you want processed. If we don’t hear from you, we will process your default payroll amount automatically.

? What if I had a payroll change I forgot to report?

Don't worry, we'll take care of it. Just call or email us right away and we can discuss your options. We may be able to make the adjustment right away, or in the following pay period, depending on the situation.

? How does the money get from my bank account to my caregiver's?

We collect the bank information for you and your caregiver, withdraw the funds from your account a few days prior to the pay date, and deposit them into your caregiver's account on the pay date.

? What happens at tax time?

We automatically file the necessary tax documents and email you a copy of the T4 slip for your caregiver, and the T4 summary for your records by the last day in February for the previous calendar year. We can provide a detailed tax summary upon request that you can use to claim childcare tax credit if applicable which includes everything paid in the year (employee’s pay, tax remittances, worker’s compensation premiums and our processing fee).