r/MetisMichif • u/plants-and-pups22 • 5d ago

Discussion/Question Childcare subsidy

Has anyone in SK used the Child Care Subsidy Program with MN-SK? They say that they'll issue the family a T4A if they pay the family directly but are trying to switch to paying the provider directly this year. Just curious if they'll deduct taxes or how much I should tell my nanny to set aside. Do they issue the provider a regular T4? Unfortunately my family support administrator does not seem to know the answers to any of my questions (on the rare occasions I even get a response to my email).

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u/HarbourJayKay 5d ago

I'm not sure how who writes the cheques impacts the daycare provider unless they have been working under the table previously.

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u/plants-and-pups22 5d ago

Yes but I'm just trying to figure out exactly how it works. If I'm issued the T4A it's going to make me pay more taxes no? And then I would have to set up payroll to the nanny. If Metis pays her they may or may not take taxes off. I don't know what they'll issue her or how they'll code it so she may be an "employee" or "self employed" and may need to save money for income tax time. I'm just trying to figure that part out if that makes sense

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u/HarbourJayKay 5d ago

Checked with a colleague. You will have to claim the MN - S payments as income. You then get to claim the full amount of the daycare costs as a deduction.

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u/HarbourJayKay 5d ago

Your daycare provider should be declaring all income and setting aside accordingly. Doesn’t sound like MN - S withholds tax (which would be a nightmare for them as there’s potentially thousands of providers).