I suggest you give them notice that their rate is increasing effective immediately. If she asks you why then say it is because they now require receipts and you had an agreement to not provide them previously at a reduced rate.
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I suggest you give them notice that their rate is increasing effective immediately. If she asks you why then say it is because they now require receipts and you had an agreement to not provide them previously at a reduced rate.
Whether or not she wanted a receipt, you are still obligated to declare the income. If you ask for the difference now, it is tantamount to admitting that you were working under the table. If a parent told me they didn't need a receipt, I would say they are welcome to shred it, if they like, but by law, I am obligated to provide it. It just boggles my mind that a parent would tell you, basically, to cheat the government so they can pay a lower rate. If I knew from the beginning that a parent wanted me to do something unethical, I could never trust that parent. That would have been a huge red flag for me.
I agree you probably aren't going to get any of the money but I would raise her rate effective in two weeks(because that's what my contract says I must give for changes) and make her new rate $3 higher then what everyone else pays. If she stays that's how il you will recoup some of your lost wages.
Yeah I think its totally absurd. Anyway as she is your one of old client I mean two year old so you can actually give them a invoice template and get rid of her.
Legally, she entitled to a receipt. I would remind her that her new rate will be but not try and back charge her. I presume you declared the income anyway.
yes, you have to give her the receipt and give her the new rate that goes with the receipts
I don't think that the issue - that they don't care. Most parent not realized they can claim up to $8,000 of child care cost as tax credit. It's NEVER to their benefit not to have that unless of course they too are working under the counter, and trying to hide expenses because they hid income. Regardless, home day care is the most audited self employed business in Canada so even if you have this situation, declare the income, tell the client you will be issuing a receipt, and then if they pay you cash and opt to use it, that on them. As long as you operate above board, that all you are accountable for.
Just looked at the date of the original post, it was back in 2013
Hey, I have a parent who was asking 4 times for my SIN # in March. I told her that I don't give it out. I've given out many receipts without it and it's always fine. I have a feeling she's a scam artist. I just got another email saying that the receipt isn't valid because there's no SIN. Argh! I am not giving this women my SIN- I don't trust her and she can steal my identity. Can't the CRA just find my SIN if they have my address and name?
She isn't a scan artist. The CRA guidelines for running a day care from your home, tell you that a receipt must have SIN # to be valid. All of the software for parent tax return requires the SIN #. Although many don't like giving it out and miss it off their receipts, once a parent asks for it, you must provide it.
Home day care is one of the few businesses where you do not have to register your business and have a business name provincially. Due to this, you SIN # is how they track your income and it's the only thing that makes your receipt valid if a parent is being audited. You can voluntarily register your business and get a BIN # (business number) instead if you don't wish to give out your SIN but you must give parents one or the other if they request it. The cost of registering your business and getting a BIN is different in each province. Some really expensive and require frequent re-registration, other provinces not so expensive and last longer period of time before re-registration (and payment) needed.
Seriously - the bigger issue is you don't trust your client. If she is trusting you with the care of her child, then you have to trust her with your SIN or BIN - that's a requirement of running a home day care in this country. With all due respect, knowing what we earn, if she was going to steal someone's identity, it's unlikely to be ours.
While I'm sure the CRA can find your SIN can you imagine the fall out if they started doing that. This is clearly outlined as your responsibility to provide.
http://www.cra-arc.gc.ca/E/pub/tg/p134/p134-16e.pdf