Does Minimum Wage Apply to Family Members?

[prodigydud]

Can’t seem to find anything on this.

We are looking to have our niece regular watch our child at home. We will be paying her weekly. Does that mean we have to meet at least min. wage or is this a non-arm’s length type of arrangement?

Just wanna make sure we aren’t violating any labour laws.

Thanks!

[firebane]

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Can’t seem to find anything on this.

We are looking to have our niece regular watch our child at home. We will be paying her weekly. Does that mean we have to meet at least min. wage or is this a non-arm’s length type of arrangement?

Just wanna make sure we aren’t violating any labour laws.

Thanks!

You doing this legally and reporting wages? If so... Minimum wage

[ExtraSlow]

If you are reporting wages and doing this above board the only people who can be paid less than minimum wage are live-in domestic workers (nannies or housekeepers) and it's only less than minimum wage after deductions for room and board.

Of course, if it's a juvenile family member, they and you may choose to pay "under the table" which is illegal, but then not subject to any wage laws.

[prodigydud]

Thanks for the info. My understanding is because she’s watching our child at home, she’s considered an employee. As such, I’ve set up a business number and withholding and remitting EI and CPP. I think that’s fine and dandy from a CRA perspective, however concerned about Alberta labour laws.

Is there anything in the Alberta labour law regarding hiring family members?

[ExtraSlow]

Nothing I know of. But I haven't looked hard.

[killramos]

Didn’t the NDP change a bunch of rules around this to prevent farmers from enslaving their children?

[prodigydud]

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Didn’t the NDP change a bunch of rules around this to prevent farmers from enslaving their children?

I did read something about this regarding farms. But I don’t live on a farm - so stopped reading.

[ExtraSlow]

Is a kid elegibile for EI? You may want to call service Canada about that.

[gwill]

I thought this was a joke at first. Why would you not pay cash and avoid all the issues? How much will your niece be making over the next year??

[prodigydud]

Yeah, I was just reading up on that. May not have to deduct EI - I’ll call CRA tomorrow.

Does anyone know what this link is referring to about max. Babysitting rates??
http://www.humanservices.alberta.ca/...e/IS/5036.html

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I thought this was a joke at first. Why would you not pay cash and avoid all the issues? How much will your niece be making over the next year??

I wanted to make sure this was proper, and also would like to take advantage of childcare tax deductions.

[ExtraSlow]

The link to Max childcare rates is if the government is paying you back for your childcare, because you are on some kind of income or disability support program.

Doesn't apply to your case.

[prodigydud]

Thanks - didn’t think so

[gwill]

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Yeah, I was just reading up on that. May not have to deduct EI - I’ll call CRA tomorrow.

Does anyone know what this link is referring to about max. Babysitting rates??
http://www.humanservices.alberta.ca/...e/IS/5036.html

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I wanted to make sure this was proper, and also would like to take advantage of childcare tax deductions.

Are you paying enough to your niece that you think you'll get that big of a child care deduction? I cant imagine you'll get much of a tax break to make this worth while at all.

[dj_rice]

paging @maxboost Chinese restaurants. Family members work for free!

[asp integra]

Could you consider this the same as baby-sitting? When I have a baby sitter come over to watch my kid for a few hours I pay ~$10/hr. Nothing is reported to cra or anything?

[SkiBum5.0]

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Didn’t the NDP change a bunch of rules around this to prevent farmers from enslaving their children?

Farms are exempt - you call it child slavery, farmers call it growing up. We are raising a generation of kids softer than Nenshi's waistline

[gwill]

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Could you consider this the same as baby-sitting? When I have a baby sitter come over to watch my kid for a few hours I pay ~$10/hr. Nothing is reported to cra or anything?

I think the ops insane. Getting a business number and going through these lengths for a minor tax break??? The niece is worst off as well as she is better off getting paid under the table...

The op cant answer what their niece will be making for some reason...

To answer your question someone who baby sits periodically doesnt need to be reported to the cra.

The op should have asked their accountant or tax preparer these questions to sort out exactly what type of tax break theyd get to see if this was worthwhile.

[thinmyster]

Agreed. Seems like a terrible idea. Not worth the hassle.

[Alterac]

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Farms are exempt - you call it child slavery, farmers call it growing up. We are raising a generation of kids softer than Nenshi's waistline

HAHAHAHA

This is the truth.

[prodigydud]

As an update: I spoke with a couple CRA advisors - they feel that my situation may be considered "casual babysitting" based on a) relative involvement b) undefined weekly schedule

If that's the case, casual babysitting is outside the realm of min. wage & nanny considered an employee issue

To truly find out, you would need to fill out a CPT1 form and request a proper ruling.

Max child care benefits caps off at $8,000 per child - so for argument's sake - let's say I'm paying her $8,000. This is what prompted me to ask if min. wages were a requirement. Btw, this amount alone is too little to collect tax on - so she's not worse off.

All of this may not be worth the hassle, but i just wanna set a good example and make sure i'm doing the right thing.