When you hire a nanny or caregiver, you’re not just adding support for your family, you’re stepping into the role of an employer. And one of the first payroll decisions you’ll face is how often to pay your employee.
At NannyTax, we know families want to strike the right balance between what works best for their caregiver, what fits smoothly into their household budget, and what’s compliant with Canadian/provincial employment laws. So, let’s break it down together.
What Is Payroll Frequency?
In plain terms, payroll frequency refers to how often you pay your nanny or caregiver. Will they receive a paycheck every week? Every two weeks? Twice a month? Once a month?
Payroll frequency impacts:
- How you calculate wages and deductions
- Your nanny or caregiver’s ability to manage their own household finances
Note that all household employers remit payroll source deductions to the CRA monthly unless the CRA explicitly tells you that you can remit quarterly.
Let’s explore the options and what they mean for Canadian families.
Weekly Payroll: Predictable and Caregiver-Friendly
A weekly payroll schedule means you pay your nanny on the same day each week (often Friday). This results in 52 (sometimes 53) pay periods per year.
Benefits:
- Perfect for hourly nannies, as it aligns easily with tracking weekly hours. Note that if your nanny’s hours are being reported weekly, their pay will typically follow a one-week lag—meaning they’ll be paid at the end of week 2 for the hours worked in week 1.
- It helps your caregiver with budgeting and offers a steady flow of income.
- Builds trust and goodwill. Your nanny knows they’ll get paid like clockwork.
Drawbacks:
- More frequent payroll runs (unless you’re using NannyTax to handle it!)
- At least four months each year will have five pay periods, which can surprise your budget.
Best for: Families with part-time or flexible-hour nannies, or caregivers who need frequent pay.
Bi-Weekly Payroll: A Balanced Approach
Bi-weekly means every two weeks, typically on the same weekday (e.g., every second Friday). This results in 26 (sometimes 27) pay periods per year. This is the most popular payroll frequency.
Benefits:
- Fewer payroll runs: less admin time. Similar to weekly payroll, when hours are tracked and reported for bi-weekly payroll, pay is issued one week after the pay period has ended to allow time for processing.
- Still fairly frequent for your nanny, making it easier for them to manage expenses.
- Overtime calculations stay simple since you’re working within regular workweeks.
Drawbacks:
- At least a couple of months each year will have three pay periods, which can surprise your budget.
- Not a neat fit if you budget by calendar month.
Best for: Families looking for a practical balance between caregiver satisfaction and administrative simplicity.
Semi-Monthly Payroll With Set Calendar Dates
Semi-monthly payroll is when you pay twice a month, typically on the 15th and the last day of the month, leading to 24 pay periods annually.
Benefits:
- Fits neatly with monthly household budgeting and bookkeeping.
- Predictable dates, which some salaried caregivers might prefer.
- No extra pay periods in any years.
Drawbacks:
- Trickier for hourly or variable schedules, as pay periods may split workweeks.
- Overtime calculations can get messy.
- If the pay day falls on a holiday or weekend, it gets moved to the day prior. This does not mean that the pay is adjusted, only that the payday moves forward.
- Semi-monthly is generally only used when you have consistent, predictable hours and usually relies on pro-rating. For example, if your nanny works 8 hours per day, 5 days per week, then they will be paid for 40 hours x 52 weeks in the year = 2080 hours for the year. With semi-monthly pay (24 periods), that gets divided into equal payments of 86.67 hours per pay period (2080/24), regardless of how many actual work days fall in that period. This can be confusing, especially in months where one pay period includes 10 workdays and another has 12, but the pay stays the same. It often feels inconsistent to both employers and employees and can lead to misunderstandings about hours and earnings.
Best for: Families employing full-time, salaried nannies with set schedules.
Monthly Payroll: Minimal Admin, Maximum Stretch
Monthly payroll is exactly what it sounds like. You pay your nanny once per month, usually at month’s end.
Benefits:
- The least frequent, and therefore least time-consuming, payroll setup.
- Aligns perfectly with monthly CRA remittances and household finances.
Drawbacks:
- Less attractive for caregivers, who may struggle to stretch one paycheque across the entire month.
- May not be compliant in all provinces. Check to make sure your province doesn’t require minimum pay frequencies.
- If the pay day falls on a holiday or weekend, it gets moved to the day prior. This does not mean that the pay is adjusted, only that the payday moves forward.
- Like semi-monthly, monthly is generally only used when you have consistent, predictable hours and usually relies on pro-rating.
Best for: Households with salaried, stable arrangements and a nanny who’s happy with this setup.
What Does Canadian Law Say?
In Canada, employment standards vary by province, and minimum pay frequency rules may apply.
This means before you make any payroll decision, you should:
- Review your province’s employment standards.
- Ensure your chosen frequency meets the legal minimum.
- Confirm it aligns with your nanny or caregiver’s needs.
- Ensure that you pay within the designated period for your province.
Pro tip: NannyTax can help guide you through these details, so you don’t have to navigate the fine print alone.
How NannyTax Makes Payroll Frequency Easy
No matter what schedule you choose, NannyTax takes the hassle off your plate:
- We process payroll on your selected frequency.
- We calculate and remit taxes and deductions to the CRA.
- We generate pay stubs and year-end forms like T4s.
- We keep you compliant with all employment standards.
So, whether you prefer weekly, bi-weekly, or semi-monthly payroll, you can trust that we’ll handle the details while you focus on your family.
Final Thoughts
There’s no one-size-fits-all answer when it comes to payroll frequency for your nanny or caregiver. It’s about finding the right balance between what works for you, what supports your caregiver, and what keeps you compliant.
Need help deciding or setting things up? The NannyTax team is here to make sure your payroll runs smoothly, no matter how often you pay.Contact us at taxquestions@nannytax.ca or call us toll-free at 1-877-626-6982 for more information.