Running a Home-Care or Nursing Business in Ontario: The Money Side
Maybe you’re a nurse who’s decided to go out on your own, or you’re building a small team of PSWs. Either way, the care part comes naturally — it’s the bookkeeping, payroll and tax that keep people up at night. Here’s what to get right.
Payroll is the big one
The moment you pay a caregiver, you’re an employer: source deductions, CPP and EI, remittances to the CRA, and T4s at year-end. It’s the most common place small care businesses slip, and the penalties for late remittances are immediate. This is worth handing off from day one.
HST — know where you stand
Many health and personal-care services are HST-exempt, but it depends on the service and who’s paying. Getting it right means you’re not charging (or missing) HST when you shouldn’t be.
Should you incorporate?
As your income steadies, incorporating can offer tax and liability advantages. There’s no universal answer — it comes down to your numbers, which we’re happy to run.
Keep clean monthly books
Steady scheduling and cash flow are easier to manage when your books are current. Monthly bookkeeping gives you a clear picture and makes tax time a non-event. See how we help home-care businesses →
General information, not specific advice.
FAQ
Do I have to run payroll for my caregivers? If you employ them, yes — deductions, remittances and T4s. We handle it so it’s never late.
Are my services HST-exempt? Often, but it depends — we confirm your situation.
Should I incorporate my home-care business? Frequently worth it as income grows; we’ll model it for you.
Do you work with solo nurses and agencies? Both — from a one-person practice to a growing team.
