Having someone run the daycare

I want to clarify if I have this correct. My plan is to close during mat leave, however my assistant has asked about running the daycare (in my home) while I take the year off (and therefore not take mat leave but earn an income from the business). My understanding is that my children (the new baby and will be 4 yr old) would count in the daycare numbers correct? Even if they are in a separate space and have no affiliation with the daycare?

If this is correct, this really limits our ability to continue to earn with this business.

the answer isn't straight forward. You would have two options.

Option 1: both your children don't count all year. you only take on 3 kids. Only taking on one child under 2 as your baby counts as the other under 2.

Option 2: Your 4 yr old doesn't count during school months (must be in a government funded school full time) so between sept - june you can have 4 dc kids. BUT you can NOT take on any child under 2 as you will only be allowed one under two and your baby takes that spot. And during july and august you would have to get rid of one dc child as your 4 yr will count for those two months.

By the time your baby is 2, your 4 yr will be six and not counting in your numbers at all. Can make it work with only 3 kids until then?

If I was to remain open it would be to hire someone else to run it (my assistant). I really want the year with my baby. Doesn't sound feasible though to pay her and generate an income...oh well

If your profits are all paid to your assistant, then you're business isn't generating an income for you. Wouldn't that make you eligible for maternity leave pay?

I am eligible (because I have paid into it for a yr) I was just looking at other options because if I was able to have 5 kids in the daycare, I would possibly make more money (then going on mat leave) even with paying the assistant.

If you have assistant, be careful. Set setting hours, location and task of work = She employee. This make you employer and your assistant protected by Labour Standards. This mean you have pay min wage at least = $11 an hour in Ontario and going up to $11.25 in October. I think you might also have to make employee contribute to her CPP and EI. I not know how much that would be.

Because you proprietor of business, you would continue pay for food, insurance and other business expenses and this be tax deducting. But you can't claim back more credits than you earned so what this mean is best case scenario, you end up with nil tax bill from all expenses but if you not earning, tax bill would be zero anyway.

You have to decide if with number children you allowed, you can afford to pay min wage and if your household income cover full cost of running the day home.

I'd check that in case.