Pregnant!

[torontokids]

So I just got a positive pregnancy test! We have been trying for a little while now so I am pumped. A little freaked out though too! Its still very early days so I do not plan on telling my daycare families for a while. WWYD?

I am not sure if I will stay open and hire someone or enjoy my mat leave (I have been paying into EI for a yr now). If I choose to keep the daycare open and hire someone PT e.g. they work the mornings until nap time, I cover nap and the afternoon. Could I have parents make cheques out to my husband so I can still collect EI? Currently, all cheques are made out to me. OR alternatively, have them pay the new provider and she pay me rent or something?

I have one family that will be starting with me in Sept. His parents are pulling him from a centre to have him come to me for September. The mom is a teacher so she wouldn't need after June and it looks like the baby would be born in April. Would you tell them now so they can look into care elsewhere or just wait and tell them just before they start/after they start and claim I just found out and it was a "surprise?" I don't want to be devious but I also need to earn an income.

[kindertime]

Congratulations! That is wonderful news. As for telling people, I would stick to the 3 month rule. That still gives everybody 6 months to plan and gives you a little time to decide what you want to do. If you tell them now, they will say, what are you going to do? And since you don't know, they are still wondering. And maybe that will be more pressure on you. You don't need that. Enjoy this time instead! :thumbsup:

[CrazyEight]

Legally, you can only make $50 a week on top of your EI payment. Any more than that, and the gov't deducts money from your EI payment, dollar for dollar, making it useless to collect EI and run your daycare at the same time. Having them pay your husband instead is considered fraud, since you are making regular wages and also collecting EI. It would also complicate you claiming your income at the end of the year.

When I started my daycare, I was still collecting EI from my mat leave with my third baby. I opened 2 months early for one family, and had them pay me $50 a week for those 2 months, so that I could still collect EI, because they were going on vacation for 2 weeks during that time and I wouldn't have gotten paid at all for that. I am due with #4 next month, and am not taking a leave, nor have I paid into EI, because for me it wasn't worth it. EI will only pay you 55% of your last years' wages after deductions, and that is just not enough. So I am scaling back (have to anyways because of Bill 10) and having an easier year as a sort-of "half" mat leave. Still working, so more money than being on EI, but not running at full capacity and terming my most difficult clients. You have to work out what is best for you financially.

With regards to the assistant, I suppose your clients could pay her their fees and she could pay you a portion of them, but she'd only be allowed to give you the $50 a week before you had to start claiming the income.

I see lots of people advertising that they don't give receipts because they are on mat leave, and therefore working under the table. It wasn't something I was comfortable doing, and I'm not advising it, just passing on what is legal.

Congratulations, and good luck with whatever you decide!

[torontokids]

I'm not looking to commit fraud...I was just looking at my options so this is good to know. I didn't think these ideas were fraudulent, just creative ideas to make it work.

If I was to continue to have the daycare be open and hire someone then I would definitely want some money to cover rent, groceries, utilities etc.

[Lee-Bee]

So I just got a positive pregnancy test! We have been trying for a little while now so I am pumped. A little freaked out though too! Its still very early days so I do not plan on telling my daycare families for a while. WWYD?

I am not sure if I will stay open and hire someone or enjoy my mat leave (I have been paying into EI for a yr now). If I choose to keep the daycare open and hire someone PT e.g. they work the mornings until nap time, I cover nap and the afternoon. Could I have parents make cheques out to my husband so I can still collect EI? Currently, all cheques are made out to me. OR alternatively, have them pay the new provider and she pay me rent or something?

I have one family that will be starting with me in Sept. His parents are pulling him from a centre to have him come to me for September. The mom is a teacher so she wouldn't need after June and it looks like the baby would be born in April. Would you tell them now so they can look into care elsewhere or just wait and tell them just before they start/after they start and claim I just found out and it was a "surprise?" I don't want to be devious but I also need to earn an income.

Only if your husband quits his job to run the daycare on his own. Otherwise it is fraud and I don't think you want to be attempting fraud with the CRA.

If you hire someone part time you can only make $50 a week, anything more than that and it just gets deducted from your EI mat pay. In other words you would be working for free, for the same amount of money you would get being home on mat leave (plus $50 a week).

I'm not sure how it works to have someone completely run the daycare while you are home on mat leave. Hopefully other ladies on here have direct experience...but I would look into the insurance for that as you won't be there someone else is and your home insurance may not cover that situation.

In all honesty...can you afford to be home on mat leave income alone. If so...enjoy the mat leave and start up again when it runs out. There are enough stresses with being home with a newborn no need to add the stresses of running a daycare if you don't need to! If you need the full income then figure out the best way to do it...just be weary of fraudulent plans...they do come back to bite you later on!

Congrats.

Oh, in regards to informing families. Not before 3 months. Though, there may be an exception with the new family that was leaving a centre just to be with YOU. Would they have remained in the current centre if you weren't available? Are you comfortable in giving them a heads up, can you trust them not to tell others? Such a difficult decision to have to make. If you wait to tell them at the 3 months mark (or later) they will do the math and know that you knew long before they started. How will that sit with them?

[CrazyEight]

Oh torontokids, I wasn't insinuating you wanted to commit fraud!! I didn't know the rules either before I researched it, and it was super-complicated to find the answers. I just wanted to pass on the info I gathered. :)

[Lee-Bee]

Oh torontokids, I wasn't insinuating you wanted to commit fraud!! I didn't know the rules either before I researched it, and it was super-complicated to find the answers. I just wanted to pass on the info I gathered. :)

Totally agree with CrazyEight! No one is trying to accuse you of wanting to commit fraud. but since other people do try out such ideas it can be easy to think it is ok. By being direct you are informed...should you still choose to do it you were forewarned! If you hadn't considered it being a problem you now know so you don't get into trouble!

Your best approach is likely to try and guesstimate what your EI mat leave pay out would be...and see if you can manage on that. If you don't think you can then spend the time to consider all options to make something work. If you do need more income then there should be lots of ladies on here with ideas...just realize the ideas may not all be legit and legal so clarify all details first!

Will this be your first baby?? So exciting! You must be overwhelmed with having just found out! Try not to plan too far ahead right away...enjoy being newly pregnant before you dig too deep into details and plans!!

[bright sparks]

Congratulations!!! So happy for you!! :flower::flower:

[torontokids]

Don't worry, I didn't take any offense. I just know there are tons of legal loop holes so I was trying to see what those would be. So sounds like I can either:
1) take the year off and collect EI
2) stay open but hire someone PT and do not go on EI.

If I close, I am not sure I would reopen but if I did I think I would gear my daycare to teachers only and have summers with my kids.

If i stay open I think I would consider keeping a PT staff person on after the year and keep things lighter so I can be there more for my own kids e.g. school pick ups etc.


This will be baby #3 for me

[Fun&care]

First of all, congrats!

If you can afford to, I would just go on mat leave and collect EI. Maybe I just don't know anything about hiring an assistant but I just can't see how it would work. I feel like as providers we hardly make that much after expenses, if you are then going to hire someone whom you have to pay out of your already scarce income, is it really that far off financially than just going on mat leave?

Plus you have to check out insurance to see if it's even doable.

[5 Little Monkeys]

Congrats!!!!! :)

[torontokids]

Does anyone know if EI is calculated based on Gross or Net income? I thought it was gross income but when I look at Service Canada's site it just states "55% of insurable earnings." Google searches are coming up not too helpful. TIA

I am going to call Service Canada with a million questions tomorrow...if I can get through. Today I was on hold for an hour until the phone disconnected me!

[CrazyEight]

I THINK it's after deductions....but don't quote me on that!! Service Canada is terrible to get a hold of - good luck!

[Suzie_Homemaker]

Does anyone know if EI is calculated based on Gross or Net income? I thought it was gross income but when I look at Service Canada's site it just states "55% of insurable earnings." Google searches are coming up not too helpful. TIA

It's your gross income but your businesses net income. Earnings less expenses claimed = your business profit.

[Lee-Bee]

Also worth noting...the EI you get is taxable but they do not take the taxes off before giving it to you. You'll need to put some money aside for tax season so you don't end up with a tax bill you weren't expecting to pay.

[Van]

Be Careful what you choose Torontokids as I was on EI in 2003 set up my home daycare in 2004 when EI was finished then 2 years later EI came looking for proof that I was not running the daycare while on EI, I had a letter setting up daycare insurance for after the EI period so it was fine
Congrats :)