Paying Your Au Pair in Canada: What Every Host Family Needs to Kno

Compensating Your Au Pair in Canada:

THERE IS NO SUCH THING AS POCKET MONEY!

 

The reality is that Au Pairs in Canada are employees. As a host family, you are considered an employer and are responsible for complying with applicable federal and provincial employment requirements.

Understanding your obligations from the beginning can help you avoid costly mistakes and create a positive, professional relationship with your Au Pair.

Host Family Payroll Responsibilities

Pay at Least the Applicable Minimum Wage

Au Pairs in Canada must be paid at least the minimum wage required by the province in which they are employed. Some families may choose to offer higher wages depending on experience, responsibilities, or local market conditions.

Provide Detailed Pay Stubs

You should provide your Au Pair with a pay stub each pay period showing:

• Hours worked
• Hourly wage
• Gross earnings
• CPP deductions
• EI deductions
• Income tax deductions (if applicable)
• Room and board deductions (if applicable)
• Vacation pay
• Overtime pay (if applicable)
• Year-to-date earnings and deductions

Understand Room and Board Rules

Where permitted by provincial employment standards, room and board deductions may be deducted from an Au Pair’s wages. Any such deductions should be clearly outlined in the Au Pair/Host Family Agreement and must comply with provincial limits.

If room and board is provided at no cost, it may be considered a taxable benefit under Canada Revenue Agency rules and may need to be reported accordingly.

Obtain a Social Insurance Number (SIN)

Your Au Pair must obtain a valid Social Insurance Number (SIN) before beginning employment in Canada. You will require this information for payroll administration, tax reporting, and year-end reporting requirements.

Register for Payroll and Make CRA Remittances

Host families are generally required to register a payroll account with the Canada Revenue Agency (CRA) and make regular remittances. These remittances may include:

• Canada Pension Plan (CPP) contributions
• Employment Insurance (EI) premiums
• Income tax deductions (where applicable)

Both employer and employee contributions must be accounted for properly.

Keep Accurate Payment Records

Whenever possible, pay your Au Pair through electronic transfer or another traceable payment method. Maintaining accurate payroll records helps protect both the host family and the Au Pair.

Issue Required Employment Documents

At the end of employment, host families may be required to issue a Record of Employment (ROE) and complete any year-end tax reporting obligations, including issuing a T4 slip where required.

Failure to comply with reporting requirements can result in penalties or interest from government agencies.

Put Everything in Writing

A well-written Au Pair agreement should clearly outline:

• Hourly wage
• Schedule and hours of work
• Overtime arrangements
• Vacation pay and time off
• Statutory holidays
• Room and board arrangements
• Bonuses or incentives
• Vehicle use policies
• Other agreed-upon benefits

Clear documentation helps prevent misunderstandings and creates a stronger foundation for a successful Au Pair placement.

Final Thoughts

Hosting an Au Pair in Canada can be a rewarding experience, but it is important to understand that host families have legal employment responsibilities. By following payroll, tax, and employment requirements from the beginning, families can create a fair, compliant, and successful arrangement for everyone involved.

If you have questions about hiring an Au Pair in Canada,  please contact us to better understand the process and prepare for a successful placement.