With sky-high daycare costs remaining out of reach for parents in many parts of the country, nannies can offer a more flexible and affordable alternative albeit one that comes with tax and legal implications. Jason Heath, a financial planner and income tax professional at Objective Financial Partners says daycare is "comparable to a mortgage payment." For families with more than one child, he said, it can make more economical sense to hire a nanny. The hourly rate for a nanny typically ranges from $15 to $20, but more experienced employees often charge up to $25 per hour. Hiring a nanny makes you an employer which means you must deduct and remit to the Canada Revenue Agency the nanny's contributions to CPP and EI, as well as paying employer contributions. CPP and EI contributions for a full-time nanny making $15 per hour would cost you about $200 per month on top of premiums to the provincial workers' compensation board. It's important to begin by setting out clear expectations about what the job will entail — vacation time, work hours and daily tasks, for example. Whether you're opting for daycare or a nanny, you can deduct up to $8,000 in childcare costs for every child age six or younger and up to $5,000 for children between seven and 16. In Quebec you can reclaim even more through a refundable tax credit, which gives back a percentage of childcare spending, depending on income.