A genuine self-employed arrangement
Start with the agreed service price. The cleaner’s personal income tax is not a separate surcharge you automatically add to that price. Invoice sales taxes are a different question: confirm whether they are collected and whether they are included in the advertised amount.
A small supplier may not be required to register for GST/HST, while voluntary registration is possible. The registration rules include a $30,000 taxable-supply threshold and specific timing tests. Do not infer status from a low hourly price. See CRA registration guidance.
A company invoice
The company’s tariff already reflects its own staffing and operating costs. Add the invoice taxes only when they are extra, plus any agreed fees. If $45 includes 13% HST, the before-tax equivalent is approximately $39.82 and the customer price remains $45. This conversion must not become a second tax charge.
Tax treatment depends on location and the service. The CRA rate reference provides GST/HST rates; Quebec also has QST calculation rules. Provincial service exemptions must be checked separately.
Direct employment with payroll
Where the cleaner is an employee, the starting point is the agreed gross wage. Additional employer costs can include employer pension and EI contributions, required leave pay, applicable workplace coverage and other provincial charges. Optional payroll administration has its own fee.
Employee deductions come out of gross pay; they should not be added above it a second time. If the agreed rate is take-home pay, a payroll gross-up is needed before comparing the employer’s cost.
Use the CRA payroll calculator for supported jurisdictions and the relevant Quebec payroll guidance where applicable.
Employment status is not a price choice
The real relationship determines whether a domestic worker is self-employed or an employee. A marketplace profile or an agreement to handle one’s own taxes does not settle that classification. The CRA’s domestic-worker guidance explains the starting assessment.
Our calculator keeps these scenarios separate. It does not invent a universal payroll percentage when the required inputs are missing. Confirm the actual arrangement before relying on the final budget.