Forty percent of the income from caring for children is taxable, when the client CARES FOR children in his or her own HOME. For example, a gross income of $100 results in a net income of $40 for the service provider. Excluded work income applies to this taxable revenue.
However, a person whose exclusive role is to take care of children, a sick person, a disabled person or an elderly person IN THE HOME OF THE EMPLOYER is considered an employee. Since June 1, 2004, they are subject to the Act Respecting Labour Standards. Consequently, they must be paid at least the minimum wage.
However, in certain cases, these employees are excluded from the application of the Act. The exceptions are:
1) The duties are performed occasionally or for a short duration
For example, in the case of a couple that hires a babysitter to have a night out.
2) The duties are performed within the context of assistance to family
Care or custody within the context of assistance to family is based on natural support relations that exist within a family. It is not limited solely to parents or children and may involve, for example, an uncle or an aunt, a cousin, or even the family of a brother-in-law or sister-in-law. When persons have custody or take care of someone within such a family assistance context, they are excluded from the application of the Act Respecting Labour Standards and the minimum wage rate.
3) The duties are performed within the context of community help
When the person who has custody or takes care of others performs such duties within the context of community help, which is intended as a reflection of mutual support that may exist at the level of a community or smaller groups (e.g. community groups or sharing between friends or neighbours).
When a client performs caregiving duties that are subject to the minimum wage and receives compensation that is less than this amount, they must initially contact their employer. If the employer refuses to pay adequate compensation, the client has recourse to the Commission des normes du travail. As of that date, the person will receive conditional assistance. If the client refuses to exercise its recourse, financial assistance is calculated by considering that he or she has received the minimum wage for the hours worked.
When the client cares for children or an adult and is not subject to the minimum wage under the Act Respecting Labour Standards, the minimum amount to be considered as caregiving income is:
- $10 per day, per person cared for;
- $5 per half day, per person cared for.
This income is reportable whether it was earned to take care of a parent or a child.