Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
ryanstuds
New Member

Can you claim payroll service expenses as childcare expense?

We had twins born last year so this is my first year claiming Childcare expenses. 

We have hired a live-out part time Nanny and we pay for a payroll service that manages her pay for us. As such she's been issued a T4, and I have received a copy of her T4 as well as a T4 summary.

I understand that I can claim her gross pay plus all of the employer paid top ups  we've paid to the source deductions (not sure if I'm saying that right). I understand that her T4 and the T4 summary I've received are my backup for this portion of the claim.

I am wondering if I can also claim the fees paid to the payroll service to manage our nanny's payroll? I have a monthly invoice for this service.

I don't think there's any other expenses I haven't thought of that would apply to me.

As we started childcare later in the year we have not hit the claim limit with her gross salary + employer contributions so looking to make sure I can maximize our returns.

Thanks in advance for any assistance

1 Reply

Can you claim payroll service expenses as childcare expense?

You can claim the amount paid as child care, provided you paid your nanny so that you could work and/or go to school.  You are able to claim the amount paid to the nanny plus the employer expenses (employer paid CPP, EI).  You can also claim the amount paid to prepare the payroll. However, there is a limit to how much you claim, based on number and ages of the children, whichever is less. https://turbotax.community.intuit.ca/replies/2647863