Questions about receipts and contracts

How often do you give receipts of payment to your families? Does it make a difference how often you give the receipt? Like monthly versus yearly? I just gave my families yearly receipts last year as it states in my contract. Does it matter if you have a contract with the family or not? For example: if you have a contract with the family, you must give a receipt and claim that income. If you don't have a contract, you aren't required to give receipts? I am not sure, i have called my accountant (getting ready to do income taxes) and she's not available.

My Scenario: I have a family who requires care for their DD on a drop in basis, it's usually an hour before or after school, sometimes both. Because they are neighbour friends, i didn't ask them to sign a contract because the need for care was sporadic. Now the mom has asked for monthly receipts. I don't mind doing that but should i ask them to sign a contract or does it even make a difference? I am confused.

It doesn't matter whether or not you have a contract, you need to claim ALL income you make. It also doesn't matter how often you do receipts, as long as you give them one at the end of the year that has their totals for the entire year. Some providers like to give weekly receipts, but then do one at the end of the year with the amount they paid for the entire year.

Hope that helps.

Bookworm is right. Your are only required to give a yearly receipt but can do others if you wish. I also have a casual dck without a contract and I just keep track of what they have paid and will give them a receipt at the end of the year.

Ditto what the others have said. Contract or no contract, you have to claim the income and you have to give receipts. Since it is sporadic, I can understand them wanting monthly receipts or even a receipt for each time, but if they are okay with it and you keep careful track of it, yearly is fine too.

I've always given receipts/invoices every pay week and one end of year receipt for the whole total. For me, I find it easier to keep track as I have carbons of all of them for my own files.

I only give 'temporary receipts' out during the year and those are only for CASH payments and it says right on them 'temporary receipt ~ not for tax purposes' ... if they are paying by EMT or Cheque or what not they have a 'receipt' via their bank statements and canceled cheques!

At the end of the fiscal year and before the February 28th deadline they get one FORMAL receipt for use on their income taxes ... I have the practice that they sign that they received it and agree with the amount listed to avoid conflict. I keep one copy and they get a one for their records .... if they loose it they have to pay for a replacement and the replacement will say DUPLICATE on it so that they cannot try to use 'both' should they find the original!

I give receipts in January and July for the preceding 6 months.