How to Hire a Private PSW in Ontario Legally

You found a private PSW (personal support worker) you trust, agreed on a wage, and you are ready to bring them into your parent’s home. Here is the part most families miss: the moment you set their hours and tell them what to do, the CRA generally considers you their employer. That means a written contract, a plan for WSIB, a CRA payroll account, and real pay stubs, not just a handshake and an e-transfer.

This guide walks through hiring a private PSW in Ontario for a parent or senior, step by step. For the full picture on caregiver payroll, see senior caregiver payroll and taxes or the caregiver payroll in Canada overview.

Private PSW vs agency care

A private PSW is someone you employ directly. You find them, often through a referral, set their schedule, and pay their wages yourself. That is different from buying hours from a home-care agency that employs the worker on your behalf.

Direct hire usually means a lower hourly cost than an agency quote, more control over who comes into the home, and full responsibility for CRA payroll, employment standards, and workers’ compensation when it applies. If you want an agency to be the legal employer, this guide is not for you. RoostPay is built for household employers, not agencies.

Step 1: confirm you are likely the employer

The CRA looks at three things when someone pays a caregiver, babysitter, or domestic worker directly, in its guidance on employing a caregiver, baby-sitter, or domestic worker. You are the employer when all three apply:

1. You hire the person
2. You set their regular working hours, for example 9 a.m. to 5 p.m.
3. You assign and supervise their tasks

Employee status more broadly comes down to the whole relationship: who controls the work, who provides the tools, and whether the worker could subcontract the job to someone else. See RC4110 for the full test. A private PSW working in your parent’s home on your schedule will often look like an employee under these factors, though the CRA does not publish a hard “always” rule. Either party can request a CPP or EI ruling if you are unsure.

Step 2: write a private PSW contract

A written contract protects both of you. At minimum, cover:

• Who the employer is (often the senior, or an adult child paying on their behalf) and who the worker is
• Duties: personal care, companionship, and any light household tasks tied to care, described specifically
• Location and schedule, including overnight or live-in terms if there are any
• Wage, pay frequency, and your overtime and statutory holiday approach under Ontario employment standards
• Vacation pay or vacation time
• Probation, notice, and termination terms
• Confidentiality and home access, including who holds a key
• Who supplies gloves, lifts, and other equipment

This is not a substitute for legal advice, and employment standards still apply even if something is missing from the contract.

Step 3: plan for insurance and WSIB

“Private PSW insurance” usually means two different things that families mix up:

1. Workers’ compensation (WSIB), which covers workplace injuries
2. Optional liability or home insurance, so ask your home insurer whether a private caregiver in the home affects your coverage

For WSIB in Ontario, the rules split into two roles:

Role	Typical private-hire situation	Registration
Domestic employee	Nanny, housekeeper, or companion, except attendants	Mandatory once the worker averages more than 24 hours a week; register within 10 calendar days of hiring. Optional below 24 hours.
Attendant	Companion providing physical or personal care, such as bathing or grooming, for someone elderly, ill, or with special needs	A private individual who directly employs an attendant is not required to register, though optional coverage is available

Many private PSWs look like attendants under WSIB’s wording. If the same person also does substantial housework, or mixes child care and eldercare, WSIB has not published a clear rule for that dual role, so contact them directly instead of guessing.

Related reading: domestic employer registration in BC, Ontario, and other provinces.

Step 4: register with the CRA and set up payroll

Once you know you’re the employer:

1. Get a CRA Business Number and payroll program account for household or domestic employers.
2. Collect what you need for deductions, including a completed TD1 form.
3. Choose a pay frequency and start keeping records from day one.

For a full walkthrough, see do I need a CRA Business Number to hire a caregiver or nanny?

RoostPay calculates Ontario caregiver payroll deductions and remittance amounts on every pay run. Start your free 30-day trial.

Step 5: pay correctly every pay period

For each pay period, when they apply, calculate:

• Gross wages, plus vacation pay as required
• Employee income tax, CPP, and EI withholdings
• Employer CPP and EI contributions
• Net pay to the worker

For 2026, outside Quebec, federal EI is 1.63% for the employee and 2.28% for the employer, with maximum insurable earnings of $68,900. CPP is 5.95% each for employee and employer, with a YMPE of $74,600, and CPP2 adds 4% each above that up to $85,000. Confirm current figures on the CRA’s rate pages before each tax year.

Pay by e-transfer or cheque so each payment leaves a paper trail, and issue a pay stub. Paying cash with no withholdings and no records is what gets families into trouble. When employment ends, issue a Record of Employment (ROE) if required, so your PSW can apply for EI when the work was insurable.

Step 6: keep records, T4s, and an ROE when needed

Keep timesheets, agreements, remittance records, and pay stubs. File a T4 for the year by the CRA deadline. RoostPay generates pay stubs, T4s, and ROEs from your payroll records. You still remit to the CRA and pay your worker yourself.

What you’ll actually pay

An agency quotes an hourly rate. Your true employer cost as a direct hire adds employer CPP and EI, any workers’ comp you carry, and vacation pay on top of the gross wage.

Use the private caregiver true-cost calculator, which defaults to Ontario, to compare your numbers against an agency hourly rate you enter. We don’t pre-fill an agency rate without a cited source.

Hiring a private PSW for a parent in Ontario? Run compliant household payroll on one flat plan, $24/month or $228/year, with unlimited employees. Start your free 30-day trial or read the full senior caregiver payroll guide.

Frequently asked questions

How do I hire a private PSW in Ontario? Confirm your employer status under CRA rules, put the terms in a written contract, check WSIB attendant vs domestic rules, register a CRA payroll account, and pay with proper deductions and records each period.

What should a private PSW contract include? Duties, schedule, wage, pay frequency, vacation, your overtime and stat holiday approach, notice, and home-access rules, at minimum. Employment standards still apply even with a contract in place.

Do I need private PSW insurance or WSIB? Ask your home insurer about liability. For WSIB, an attendant hired by a private individual for personal or physical care is generally not required to register, while a domestic employee working over 24 hours a week usually is. A worker who does both is not clearly classified, so confirm with WSIB.

Is a private caregiver for elderly parents always an employee? Not always, but if you hire them, set their hours, and supervise their tasks in the home, the CRA considers you the employer under its caregiver page, and RC4110 factors often point to employee status. Get a ruling if you are unsure.

Can I pay a private PSW cash? You can pay a PSW in cash, but if you are the employer you still have to withhold and remit when required, and keep records. Undocumented cash pay is what gets families into trouble, not cash itself. We recommend an e-transfer or a cheque, so you have a paper trail for each payment.

How much does a private PSW cost in Ontario? It depends on the wage you negotiate, hours, employer CPP and EI, vacation, and any optional WSIB coverage. Use the cost calculator for a family-side estimate based on the wage you plan to pay.

Does RoostPay replace a lawyer or the CRA? No. RoostPay is payroll software. It calculates amounts and documents. It does not give legal advice or remit to the CRA for you.

Sources

• CRA, employing a caregiver, baby-sitter, or domestic worker
• RC4110
• WSIB, industry-specific coverage
• WSIB Policy 12-04-14, domestic workers
• CRA CPP and EI 2026 rate pages (see the caregiver payroll in Canada checklist)

Disclaimer

Last updated: 2026-09-25. General information only, not tax, legal, or insurance advice. Confirm with the CRA, WSIB, Ontario employment standards, and your own advisors.