Anyone will to share their contract?

I apologize if this is inappropriate to ask. I'm usually on the "sharer" end of things since I teach communications at the university level, but I haven't had a chance to start the online course on running a daycare, and I'm starting to get inquiries from parents already. I only posted my ad on kijii today, and thought I'd have a few days to get things together... Anyway, I have the documents from the daycare lady (awesome) but they are all American. I read somewhere that we have to be careful about charging by enrolment and not listing "paid" holidays. If someone has a contract ready to go and is willing to share it with me, I would be most grateful. If not, I do understand that you have gone to a lot of trouble to create the contract and might not want someone to use it as a template.
Thanks,
Diane

Diane, I would be happy to send you my contract, but can you pm your email, that's the only way I know how to do it. I have perfected my contract over the past 4 years and love it because it pertains to me and is worded simply. I think that people have a better chance of remembering the rules if there aren't too many and if they are worded in plain language. Of course, you would have to change it to your tastes and your situation and to the way you want to run your daycare but it could give you some good ideas.

Once again, you are too kind. I'll pm you my email address, thank you so much!
Diane

My contract is simple 2 pages ~ going to loose its formatting on you but here is a cut and paste

Quote:

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This is a contract for childcare services between (insert my daycare business name) and (insert clients names) the parents /guardian of the following:

1. Child’s Name: ___________________ Child’s Birth Date: ____________________ _
2. Child’s Name: ___________________ Child’s Birth Date: ____________________ _

Family Address: ____________________ ____________________ ____________________ _________________
City ____________________ _ Postal Code: ___________________

Income Tax receipts to be issued to the following: ____________________ ____________________ _________

Hours of Care Committed to:
 Fees are based on care to be provided on the following days
 Child 1.
Mon. ___am- ____pm Tues.___am- ____pm Wed.___am- ____pm
Thurs. ___am- ____pm Fri. ___am- ____pm Other: ____________________ _

 Child 2 .
Mon. ___am- ____pm Tues.___am- ____pm Wed.___am- ____pm
Thurs. ___am- ____pm Fri. ___am- ____pm Other: ____________________

 Fee Plan Option _____ at a total weekly fee of ____________________ _____________.

 Payments to be made weekly bi-weekly monthly in advance of care. (please circle)

Payment Fees
 I have provided a security deposit of $_______, equal to two weeks fees at the time of enrollment to confirm a space within the program. I am aware that this deposit is non-refundable should I change my mind and not enroll in the program. I understand that the security deposit can be applied towards my end of service notice period provided I give proper written notice. If I do not give 10 business days written notice of my intent to withdrawal from the program I acknowledge that the security deposit will be kept in lieu of written notice and any outstanding fees due to changes in fee structure during enrollment or other fees will still be owed and are my responsibility to pay to the provider for services rendered.
 I understand that fees are due in advance of care by noon on Fridays as per my payment schedule. I acknowledge that a late payment fee will be charged if fees are not paid by the close of program on the Friday of my scheduled pay day.
 The suggestion of supplying post dated cheques to ensure timely payments has been explained to me and I understand that a late fee of $10.00 will apply to all late fees. A service charge of $25.00 will apply to any NSF payment. After a NSF cheque I understand I will be required to pay cash/money order before care can continue.
 It has been warned that regular occurrence of NSF payments may result in cash only service for the duration of the service or in termination of this contract and services in their entirety.
 I am aware that I am paying for the space contracted and therefore fees are due for all days committed to, as directed above, regardless of my child’s actual attendance, including all public statutory holidays, inclement weather or illnesses where my child cannot attend the program.
 I understand that for every child not picked up by the scheduled time of this contract there is an additional charge of $5.00 in first 5 minutes $1.00/minute for every minute after. I acknowledge I will be required to sign a late fee form and that payment for these fees will be due with my next scheduled payment.
 I acknowledge that from time to time the provider may need to raise program fees in order to meet the changes in cost of providing service. It has been explained that a minimum of one month’s written notice will be given prior to any such increase and a new contract signed to reflect these changes.

Vacation / Time off Policies
 Families on Option A pay agree to paying a higher weekly rate but no fees are collected during provider vacation closure or personal days taken. I have opted for this plan ___________ (parent initials)
 Families on Option B agree pay a lower weekly rate but commit to provide fee payment for the two weeks of the provider’s vacation plus 10 personal days throughout the year. Clients on payment option B who withdraw from care before vacation or personal days are taken within that year agree to pay out any owned vacation accrual on their last payment. Vacation and personal days is accruable at 8% of the lower fees paid to date at time of withdrawal minus any paid days already taken by the provider. The provider will track all days taken in the clients account ledger for client reference. I have opted for this plan _________________ (parent initials)
 I have been notified that the program is closed for the Christmas period as of my regular pick up time on December 23rd and reopens on the first Monday in the New Year unless otherwise notified in writing. All statutory holidays payments are due during this closure period and any statutory holidays that take place on a weekend will be taken on a weekday in lieu. Provider will provide clients with a reminder of fees due leading up to the Christmas closure – all fees or posted dated cheques for fees are to be provided before the Christmas closure.
 If families choose to take additional vacation, at other times of the year aside from program closures, payment to secure space will be required in advance of vacation leave.
 In addition, there may be an odd occasion throughout the year where the program is required to close early to accommodate provider appointments, a written notice will accompany early closures and I understand I will need to make arrangements to pick up my child beforehand.
 If the provider cannot offer care due to medical or family emergency, and an alternate provider cannot fill in, all families will be given as much possible notice to arrange alternate childcare for themselves. Family support during this times is greatly appreciated 

Parent Handbook Received
• I have read and received an electronic PDF copy of the 'Inspired by Reggio's' Parent Handbook as of this date. I have also been made aware that the handbook is reviewed and revised as required to meet the changing needs of the program and a most recent copy is available for my reflection at (my daycare website url)
• I know my responsibilities as a client and I hereby agree to abide by all areas outlined within the Parent Handbook and any updates that might be made to it.
• I understand that failure to comply with the policies/procedures may result in immediate termination of this contract and forfeiting of my security deposit. If at any time a change to the handbook or service being offered occurs that I do not feel I can work within I understand I will need to provide proper notice of termination of this contract to the provider as per policy or forfeit my security deposit in lieu of notice.


Parent/Guardian Provider’s on this Date
Signature Signature

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My parent handbook than covers what 'service' is offered by me, my philosophies and practices on nutrition, quiet time, diapering / toilet training, behaviour and guidance and so forth as well as what clients are expected to provide or do to support the program in order for me to ensure I have the tools and resources to provide that service (aka enough diapers, wipes, clothes for inside and out each day, follow the code of conduct or care and so forth).

Personally I have never heard that there is any issue with having clients pay for the 'spot' including stats and so forth whatever we put in our contract and are able to get prospective clients to 'agree to' is between us .... the guidelines for self employment verses being 'employed' are basically when the PROVIDER OF SERVICE/WORK has MORE control, MORE INVESTMENT in the service being offered and so forth than the person 'getting the service/work' from them .... so I am clearly self employed as this is MY contract and the client has the choice to accept its terms in their entirity or seek service elsewhere ~ it is not 'negotiable' like some employment contracts or where the 'employer' is the one who is making all the 'offerings' for what they are willing to pay for said service and where my choice would be to accept THEIR terms or seek employment elsewhere so WE have more control in that instance, next this is MY house where the service is being offered and I choose the hours I work, I provide all the daycare materials and I assume ALL liability for said service being offered ~ verses a 'nanny type' position where it is in their home and they are providing all the materials and the employer than holds all liability if the nanny is injured and so forth!

If you want to have your stats and other paid days in your contracts ~ I would not think twice about doing so .... either way clients ARE paying these things it is all in how you budget for it .... either you have a lower consistent fee that 'includes payment for stats / closures' or you charge clients MORE upfront and you put the $$ aside yourself for when you are closed .... it is all in how the provider chooses to set her business plan and budget ;)

Wow, thank you so much for all that helpful information. I think I read in the early learning centre documents that if you put in anything about "paid" holidays, then you are considered to be in an employer/employee relationship and may be responsible for EI and CPP payments. Of course, I've read hundreds of pages of stuff in the last week, so I hope I can find that. There was some exact wording to use for this. Paid holidays imply employment versus contracting or something... I'll see if i can find it.
Thanks again for our generous sharing. I appreciate it so much!
Diane

This link below might help hon - directly from the government website on determining employed or self employed .... I have added the red comments .... so when you weigh ALL of those things even though 'paid vacation / stats' is something usually seen in an 'employment' situation the rest pushes us directly into SELF EMPLOYED - as a self employed person since YOU control the contract it is up to you ~ you factor your potential expenses and set your fees in your contract OF service accordingly and it is up to the customer to choose to accept that service and to pay for it .... kinda like some restaurants factor in the TIP automatically and others do not it and the customer has to choose if they want to accept that or eat elsewhere!

Our industry is 'unique' because we are a repeat service business with a bunch of rules that regulate our income ... unlike a hairdressor who can 'double book' her appointments leading up to a stat closure or vacation or after a sick day to make up for lost income on those days ... we CANNOT our income is limited to the legal amount of clients we can have ... so it is easier to set our fees to either 'include' payment for these or to charge MORE over the course of the year to make up for it so that we can be assured to have an income of X at the end of the year either way ;)

Quote:

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http://www.cra-arc.gc.ca/E/pub/tg/rc4110/rc4110-e.html

We ask the worker and the payer questions that will help us understand the working relationship and allow us to verify whether the intent of the parties is reflected in the facts.

These questions relate to the following elements:

the level of control the payer has over the worker’s activities; (in our case NONE we determine our policies and practices)
whether or not the worker provides the tools and equipment; (yes WE provide the the majority of tools and equipment)
whether the worker can subcontract the work or hire assistants; (yes we can if we so choose)
the degree of financial risk taken by the worker; (the risk is all OURS if the client pulls we have no recourse)
the degree of responsibility for investment and management held by the worker; (again this is all OURS as the service provider )
the worker's opportunity for profit; (again we control the expenses and profit for our businesses) and
any other relevant factors, such as written contracts. (WE write the contract)

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sorry it would not let me post it all in one post but it goes on to 'detail' list the examples of those things ... i removed some of the quote that does not apply to home childcare either way

Quote:

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We look at the answers separately for each element and then together.

Control

Control is the ability, authority, or right of a payer to exercise control over a worker concerning the manner in which the work is done and what work will be done.
Degree of control or autonomy (we have all the control or autonomy here)

Consider the degree of control held by the payer or the degree of autonomy held by the worker.The actual degree of control will vary with the type of work and the skills of the worker.

Payer's right to exercise control

It is the right of the payer to exercise control that is relevant, not whether the payer actually exercises this right. It is the control of a payer over a worker that is relevant, and not the control of a payer over the end result of a product or service purchased.

Indicators that the worker is an employee

The relationship is one of subordination. The payer will often direct, scrutinize, and effectively control many elements of how and when the work is performed.
The payer controls the worker with respect to both the results of the work and the method used to do the work.
The payer determines and controls the method and amount of pay. Salary negotiations may still take place in an employer-employee relationship.
The worker requires permission to work for other payers while working for this payer.
Where the schedule is irregular, priority on the worker's time is an indication of control over the worker.
The payer determines what jobs the worker will do.
The worker receives training or direction from the payer on how to do the work. The overall work environment between the worker and the payer is one of subordination.
The payer chooses to listen to the worker's suggestions but has the final word.

Indicators that the worker is a self-employed individual

A self-employed individual usually works independently within a defined framework. (Yup this is me)
The worker does not have anyone overseeing his or her activities.(Yup this is me)
The worker is usually free to work when and for whom he or she chooses and may provide his or her services to different payers at the same time.(Yup this is me)
The worker can accept or refuse work from the payer.
(Yup this is me)
The working relationship between the payer and the worker does not present a degree of continuity, loyalty, security, subordination, or integration, all of which are generally associated with an employer-employee relationship.
(Yup this is STILL me despite that some clients continue on with me for years ... the fact remains that only guarantee I have from a client is TWO WEEK deposit that I take when they enroll they are free to leave at anytime, they have no investment in my business, no loyalty to my business and no 'integration' into my business)

Financial risk

Consider the degree of financial risk taken by the worker. Determine if there are any fixed ongoing costs incurred by the worker or any expenses that are not reimbursed.

Usually, employees will not have any financial risk as their expenses will be reimbursed, and they will not have fixed ongoing costs.

Self-employed individuals on the other hand can have financial risk and incur losses because they usually pay fixed monthly costs whether or not work is currently being performed. (Yup this is DEFINITELY me)

Employees and self-employed individuals may be reimbursed for business or travel expenses. Consider only the expenses that are not reimbursed by the payer.
Indicators that the worker is an employee

The worker is not usually responsible for any operating expenses.
Generally, the working relationship between the worker and the payer is continuous.
The worker is not financially liable if he or she does not fulfill the obligations of the contract.
The payer determines and controls the method and amount of pay.

Indicators that the worker is a self-employed individual

The worker hires helpers to assist in the work. The worker pays the hired helpers.
(I do not do this but some do)
The worker performs a substantial amount of work from his or her own workspace and incurs expenses relating to the operation of that workspace.(Yup this is me)
The worker is hired for a specific job rather than an ongoing relationship.(This is what makes us 'unique' to other service providers .... I have been seeing my chiropractor weekly for several years does that make him my 'employee' or my hairdresser and other that I have an 'ongoing' relationship with cause their service is 'repeat business' in nature ... so NO they are not my employees and the same goes for us in this case we see clients 'repeatedly' because our service is needed on a repeat basis)
The worker is financially liable if he or she does not fulfill the obligations of the contract.
(Yup this is me ~ I am still on the hook for my expenses and the financially liable if I did not 'offer' services I was paid for under the contract)
The worker does not receive any protection or benefits from the payer.
(Yup this is me .... clients do not cover my extended health care or anything else my only 'protection' is the service contract we entered)
The worker advertises and actively markets his or her services.
(Yup this is me)

Responsibility for investment and management

Consider the degree of responsibility for investment and management held by the worker.

Is the worker required to make any investment in order to provide the services?(Yup this is me)

A significant investment is evidence that a business relationship may exist. You should also consider if the worker is free to make business decisions that affect his or her profit or loss.

Indicators that the worker is an employee

The worker has no capital investment in the business.
The worker does not have a business presence.

Indicators that the worker is a self-employed individual

The worker has capital investment. (Yup this is me)
The worker manages his or her staff. (some providers yes)
The worker hires and pays individuals to help perform the work. Some providers yes
The worker has established a business presence.
(Yup this is me)

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Last section

Quote:

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Opportunity for profit

Consider whether the worker can realize a profit or incur a loss, as this indicates that a worker controls the business aspects of services rendered and that a business relationship likely exists. To have a chance of a profit and a risk of a loss, a worker has to have potential proceeds and expenses, and one could exceed the other. (Yup this is me - took a loss my first year)

Employees normally do not have the chance of a profit and risk of a loss even though their remuneration can vary depending on the terms of their employment contracts. For example, employees working on a commission or piece rate basis, or employees with a productivity bonus clause in their contract can increase their earnings based on their productivity. This increase in income is not normally viewed as a profit, as it is not the excess of proceeds over expenses.

Employees may have expenses directly related to their employment, such as automobile expenses, board and lodging costs. Normally, expenses would not place employees at risk of incurring a loss because it is unlikely that the expenses would be in excess of their remuneration.

Self-employed individuals normally have the chance of profit or risk of loss, because they have the ability to pursue and accept contracts as they see fit. They can negotiate the price (or unilaterally set their prices) for their services and have the right to offer those services to more than one payer. Self-employed individuals will normally incur expenses to carry out the terms and conditions of their contracts, and to manage those expenses to maximize net earnings. Self-employed individuals can increase their proceeds and/or decrease their expenses in an effort to increase profit. (Yup this is me)

This factor has to be considered from the worker's perspective, not the payer's. It is for the most part an assessment of the degree to which the worker can control his or her proceeds and expenses.

Employees generally do not share in profits or suffer losses incurred by the business.

The method of payment may help to determine if the worker has the opportunity to make a profit or incur a loss. In an employer-employee relationship, the worker is normally guaranteed a return for the work done and is usually paid on an hourly, daily, weekly, or similar basis.

Similarly, some self-employed individuals may be paid on an hourly basis. However, when a worker is paid a flat rate for the work performed, it generally indicates a business relationship, especially if the worker incurs expenses in performing the services.

Indicators that the worker is an employee

The worker is not normally in a position to realize a business profit or loss.
The worker is entitled to benefit plans which are normally only offered to employees. These include registered pension plans, and group accident, health, and dental insurance plans.

Indicators that the worker is a self-employed individual

The worker can hire a substitute and the worker pays the substitute.(Yup this is me)
The worker is compensated by a flat fee and incurs expenses in performing the services.
(Yup this is me)


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Holy crap! Reggio went into research overdrive last night! Now Reggio is a magnificent researcher, but treeyholm, you can do this job two ways, the hard way or the simple way. It's completely up to you of course.

I have a contract, medical forms, picture permission form, a receipt book, the children's daily logbook and my receipts. That's pretty much it, no fancy forms at all for injuries, etc. just open communication daily with my dcparents and good relationships with everyone. Now, if I ever run into a family who have some paranoid feelings about daycare or their children I may have to invent a couple of simple forms but I don't see myself ever accepting that kind of family into my daycare really.

I believe that everything should be worded simply because, let's face it, my dcparents are not lawyers, they are hard-working people with a lot to handle and remember. They are juggling their working and home & family lives and I want them to remember all my rules so they had better be simple and straightforward and make sense.

Also, I don't want to drive myself crazy with too much information and I work very long days without complicating my life more with paperwork that isn't necessary. I have field trip days, teaching days with crafts and my theme of the week books and games, etc. and I have imagination days, usually on rainy days. That is how my daycare days run, with great routines and good nutrition and fun and exercise and learning every day no matter what we are doing. So why would I drive myself crazy with excess paper? That's how I run my daycare.

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Originally Posted by Momof4

Holy crap! Reggio went into research overdrive last night! ....

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Nope ~ cute and paste that directly from the government website ;)

Just did not want her or others to feel she could not charge for Stats or negotiate a pay for the space regardless into her contract with her clients for service because some third party has told her it 'blurs' the lines of being employed verses self employed business person ~ IMO based on the above criteria we are CLEARLY self employed according to the government definitions up there ... there are far more indications for self employed and providers adding in additional financial perks into our service contracts should not negate that ;)

I think that sometimes 'suggestions' out there from other agencies are OLD and have not been updated by the people whom work there - the come from a time back when the CRA did not considered 'home childcare' a business but a 'hobby women did for mad money' back when we did not even have to claim our income as taxable income or have any rules around what we could write off, did not pay into CPP and so forth ~ important to find out research and information that is current ;)

Wow, thank you so much. I used to teach entrepreneurship at the university, so I do understand the self-employed versus employed thing, but I wish I could remember where I saw that part about making sure you actually charge by enrolment and don't mention paid holidays.... you are so right, that could have been quite outdated, and I hadn't thought of that.
Don't know what I'd do without you guys... second in person interview scheduled for Monday. This is moving so quickly!
Diane

I found it! It's from the child care providers resource centre in Ottawa. The link is:

http://www.ccprn.com/en/information-...or-caregivers/

"How many holidays can I take?
Caregivers are self-employed and therefore are not entitled to "paid sick time", or "paid vacation". To accommodate for this some caregivers charge more per day and bank the extra money for when they are sick or on holidays. Others use statements similar to the one below:

"Weekly fee for care is _____, totaling an annual amount of ______. Payment is expected for the agreed upon hours/days whether the child is in attendance or not. Payment will not vary due to statutory holidays, child’s illness or appointments or parent vacations. Fee will be negotiated if caregiver takes excess of ____days off annually."

Another term for this is being "paid by enrolment". The language is very important in case of an audit by Revenue Canada. If you are audited and your contract mentions "paid vacation" and "paid sick time", Revenue Canada can request the parents pay CPP and UI Benefits. Remember also, Revenue Canada can go back 6 years."

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Originally Posted by treeholm

I found it! ... "How many holidays can I take?
Caregivers are self-employed and therefore are not entitled to "paid sick time", or "paid vacation"....

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Ugggg .... no offence to CPPRN cause they are an awesome resource to providers but IMO entitled is a horrible word to use and it propagates the belief in clients hearing that come from a professional association :rolleyes:

But yes this is true we are not 'entitled' under the Employment Standards Act for any of the protection of that act because we are self employed and because we ARE self employed IMO we are ENTITLED to negotiate anything we want into individual contracts with clients as long as the market will bare it and the client signs and agrees to the terms of payment for the service being offered under that contract ;)

IMO that is just nit picking of potato and potatoe as for as wording is concerned and likely done more not for CRA concern over employed or self employed but to EDUCATE home childcare clients and to make it seem 'fairer' to those who are stuck in that ' we are not 'entitled' to stats holiday / vacation thinking themselves ;)

This is why I have TWO payment options for clients .... one where they pay a much higher fee and do not pay for my closures but do if their child is sick/on vacation and another where they pay for the 'space' regardless and that included 10 stat closures, 10 vacation days, 10 paid personal days ~ if I go over those closures than I would 'credit' clients accordingly ... but I do define those 'days' so it is clear to clients later!

And it sounds amazing, Momof4!

I appreciate your input, and I agree with you. I do like the wording in that section though about payment not varying for weeks with stat holidays, and that is what I will go with for now. Yes, that does mean stat holidays are paid, but it doesn't call them paid holidays per se... hopefully that satisfies Revenue Canada... I probably seem a bit paranoid, but I'm a business professor in my other life... way too cautious when it comes to the authorities LOL I can't wait to have fun with little people instead of obsessing about the paperwork!

I hear ya ~ the wording from CPPRN about paying for space accomplishes the same goal for you ... your fee payments will be consistent regardless of a stat, sick day or vacation so you do not have to set aside the $$ yourself by charging more upfront and less during 'closed times' as you are getting 'paid' for them plus as you 'renew' contracts down the road you can add in more ' in excess of _____ days' for yourself and desired as a perk so not a specific 'raise' in income but more time off for yourself and family ;)