Canadian Parenting and Child Care Community

General Discussion => Canadian Child care / daycare news => Topic started by: Galja21 on January 18, 2014, 12:48:41 PM

Title: Opening an unlicensed home daycare
Post by: Galja21 on January 18, 2014, 12:48:41 PM
Hello.
I want to open my own not licensed home daycare.
I have so many questions that I don't get answered online.

Well here are my questions. And I appreciate any help I can get :)

1. How do I register my daycare name? Do I have to have a daycare name if I'm not licensed? I would love to have a name. :)

2. I want to be able to give out receipts to the parents because I want to give them the opportunity to tax it at the end of the year. Do I have to have a daycare name if I give out receipts?

3. How do I pay taxes on my "pay checks"? How does this taxes thing work?

Any other informations that you think would be helpful is greatly appreciated.

Thank you already for your help
Title: Re: Opening an unlicensed home daycare
Post by: Rachael on June 24, 2015, 12:32:32 PM
What province are you in?

Quote
1. How do I register my daycare name? Do I have to have a daycare name if I'm not licensed? I would love to have a name. Smiley

You do not have to register your inhome day care. It's one of the few businesses where it's not required. However, without a business number to include on tax receipts, you must instead provide your SIN number.

No, you don't need to register regardless of being licensed or not, you can operate under your own name. But if you want a business name, then you have to register your business in case someone else is using that name all ready. It protects you from getting a bad rep from a business unconnected who has the same name.

Quote
2. I want to be able to give out receipts to the parents because I want to give them the opportunity to tax it at the end of the year. Do I have to have a daycare name if I give out receipts?

You are legally obligated to give out receipts. You don't need to be a registered business (for this job code) to give receipts.

This guide is by the CRA and tells you what you must include on receipts. http://www.cra-arc.gc.ca/E/pub/tg/p134/

Essentially, you must have name of parents, name of child, dates the receipt is from and to, amount paid by parent, your name, your address, your SIN, your signature.

Quote
3. How do I pay taxes on my "pay checks"? How does this taxes thing work?

You are considered to be an independant contractor which just means you are self-employed and not an employee. As such, you have no protection from Labour Standard Laws and so you need to protect yourself. Make sure you have a contract which spells out your service and is signed by both you and the client. Make sure the client gets a signed copy as well.

And the end of the tax year, you do your taxes and pay your tax bill in one hit. Save the fees from at least one FT day care child for your tax bill.

When you do your taxes (I use UFILE but there are other softwares too), you must also pay CPP. You pay the full amount for your province since there isn't an employer contributing on your behalf. So be warned, you pay what an employer + employee would normally pay between them.

Also, the self employed can now opt in to EI. The coverage is NOT the same so think carefully. If you opt in, you cannot make an EI claim for one full year and you cannot make a claim just because you are low in clients. It's solely for if you are on mat leave, have a sick dependant child, or if you are prevented from working and have zero business income. You cannot opt our once you opt in so you must decide if you benefit from having this. You can opt in at any time and do so by calling CRA and that will be the start date. Your EI is also paid year end.




Title: Re: Opening an unlicensed home daycare
Post by: Kaitlyn88 on November 30, 2015, 02:26:27 PM
Thank you for your help