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Hello all, I just had a question for everyone I'm looking at revamping my contract. Ive heard that some charge for Stat holidays and others do not. I currently do not charge for them but am thinking about starting to in the new contract but I cant see a reason so to speak. So I guess I'm asking who charges for stats and really what is your reasoning behind it. Thanks to all in advance for your help!
First off DON'T put anything about paid time off in your contract. Put it in your handbook. This goes for all providers across Canada. If you get audited and you have that you get paid for stats, vacation, sick days etc. the government can go after all your clients, past and present to collect the employer portion of cpp and ei. This is because if you charge for these you are no longer self employed, by are employed by your clients.
There is a way to get around this. Have a contract and a handbook, keep them seperate. If you get audited you give them your contract (financial information), not the hand book. Have this in your contract:
Payment is your tuition for the program and does not vary due to parental vacation, or illness of the child. If the daycare is open and your child does not attend for whatever reason, or if the daycare is closed for any reason, payment is still expected in full. In other words you pay the same tuition fee amount every two (2) weeks.
or this
Payment is your tuition for the program and does not vary due to parental vacation, or illness of the child. If the daycare is open and your child does not attend for whatever reason.
Have all other information in your hand book. Example:
Daycare Closures:
A burned out provider or a sick provider is a dangerous provider. A provider needs time off throughout the year and when sick, (for such illnesses such as the flu) to insure she is well rested and well enough to ensure the safety of the children in her care.
Scheduled days off:
You will be given at least three (3) weeks’ notice. It is the parent’s responsibility to find back up care.
Scheduled days off include, but not limited to:
• March Break
• Christmas
The days off due to illness/Emergency days:
These are taken as needed. It is the parent’s responsibility to find back up care. Please note that illness of myself or my children can come on suddenly leaving very little notice; if any. If I or my children have a simple cold the daycare will remain open.
Other Daycare Closures:
New Year’s Day, Family Day, Good Friday, Easter Monday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving Monday, Remembrance Day, Christmas Eve, Christmas Day, Boxing Day, and New Year’s Eve.
If the holiday falls on a Saturday or Sunday I can either take the Friday before or the Monday after off or on another day during the week before or the week after.
We ask to be paid on stats because our clients get paid for them, its that simple. Yes some of your clients might be self employed and don't get paid for them, but that isn't our fault. If you have it in your handbook and have one of the two lines above in your contract and they signed your contract they have to pay you for those days.
For more information on this check out www.homedaycarebusiness.weebly.com
Thanks for this tidbit BlueRose! I had no idea. I do have a separate handbook and contract, but my contract basically says that the parent has read and agrees to all the terms and conditions listed in my handbook. So if I'm ever audited, would they then want to see my handbook to see what the terms and conditions are?Quote:
Originally Posted by BlueRose
As for charging for Stat Holidays, I agree that the majority of people get that day off and are paid for it, so most parents are understanding of their daycare providers doing the same. I've actually never come across anyone who has questioned it.
I charge for all stats. Most get paid for the day so why not me? I list all days I am closed and call them paid days - not stats.
If their child was to attend a centre, they would also be required to pay for stats. It's pretty standard.
Just out of curiosity, has this happened to you you or someone you know? Because I don't believe it is true. Here's why.Quote:
Originally Posted by BlueRose
http://www.cra-arc.gc.ca/E/pub/tg/p134/p134-15e.pdf
This booklet explains what the difference is between self-employed and employee.
It says:
It doesn't say anything about whether or not you can charge for closures.Quote:
The amount of control a parent has over your work decides whether you are a self-employed individual and whether you can deduct daycare expenses from your daycare income.
Generally, you are a self-employed individual if you control:
■ the number of hours you work;
■ the places and materials you use; and
■ the way you carry out your daycare duties.
You can claim daycare expenses on your income tax return if you report self-employment income earned from running a daycare.
Generally, you are an employee if the parent:
■ specifies the work to be done;
■ specifies the working hours; and
■ supervises your work.
As an employee, you cannot deduct daycare expenses.
Now, I know the rules in Que. can often be different from everywhere else, however, I cannot imagine if the CRA allows us in Quebec to do something, that it wouldn't be allowed in the rest of the country too. Because the CRA has to have the same rules that aply to everyone. Am I wrong?
I charge for all daycare closures, planned or not. I am not only allowed to charge for closures, it is expected and a protected right in our collective agreement. We even get paid the subsidy amount from the government when we are closed for the manditory 25 days/year. Even before the collective agreement, we were allowed to charge for closures, it just had to be written in the contract.
To the OP:
Whether or not you charge for stats, I think, has more to do with your area, and what the local parents are willing to pay for. There are places, (I have read on the forum) where that is simply a no-go and other places where it is the norm.
I know of several providers who where audited a few years ago. I spoke with on personally, she was told by the auditor not to put anything to due with paid time off in her contract. That he could go after her clients for the employer portion of her ccp and ei. But that he was going to just give her a warning.
I also called cra and asked them if a self-employed person was allowed to get sick pay, vacation pay, and stat paid there answer was..... A self-employed individual is NOT allowed to be paid for days not work such as sick days, vacation days and stats. ONLY employees are entitled to this type of pay.
I charge for them, but that's standard in my area(southern Ontario)
I've been audited - twice. It wasn't a problem. My contract and handbook list the day I closed for stat and civic and that these are paid days. My contract and handbook both state I get 10 personal days too.Quote:
Just out of curiosity, has this happened to you you or someone you know? Because I don't believe it is true. Here's why.
CRA didn't even flinch or mention it. And my client would told me had they been charged.
My contract and handbook are the same. I charge for stats but $10 less than normal fee. I don't really have a reason other than it's just the norm in my area lol.