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Hello, i am starting up an at home daycare in january. i just registered a name but was wondering what kind of information i need to provide on a receipt (weekly)
i am pretty uncomfortable with providing my SIN but is that my only option?
thanks in advance!
You don't need to provide anything more than an annual tax receipt. Weekly book keeping for yourself is obviously a wise choice, but it's a lot of extra work IMO to give a weekly receipt and not necessary unless your families are paying in cash, in which case you don't have a paper trail like you would with payments made via cheque or EFT so then a weekly receipt would make sense.
I agree with Bright. Weekly receipts is a lot of extra work and will get old real fast. Most parents will likely loose them as well.
When providing a receipt, I put the parents name, the amount they paid, the date of receipt, my name and the dates care was provided with the child's name. I just bought a cheap receipt book from dollarama and it does the trick.
This is just a suggestion but this is how I do it....every 2 weeks payment is owed. I keep a sheet for each child/parent. I mark down the date of payment, the amount of payment, the method of payment (cash or cheque) and than both the parent and I initial it. Than at the year end (or when they leave my care) I write up an official receipt for them like I mentioned above. This also helps with them just up and leaving....I require a month's notice of withdrawal and if they want their year end than they would need to give me this. (not that I think you can legally withhold a receipt but hey, whatever works! lol)
I provide receipts monthly no matter the method of payment. I include the same info as 5 Little Monkeys. If you've registered your business name I'm assuming that you've been issued a business number. You can write this on the receipts instead of your SIN
Not sure where you live but when I registered my business name there is no business number given.
I do a year end receipt. I keep a log of what is paid every payday and at the end of the year I make a copy for each parent and then the one receipt. Easier for everyone me included. No adding up receipts for tax time.
I don't include my SIN on any receipt. I do put my name and business name on it. I have in the past had past clients call for my SIN number because they are getting audited. I will give it to them at that point. I have no concerns about that. If I did (questionable family) I would just ask to send it to CRA myself.
Ah, didn't stop to realize that it might not be the same in every province. :) I always use my BIN on my receipts. Giving out my SIN made me nervous!
Do NOT give your SIN # to clients. A Business number is all that is required and not even that. Just a receipt will do. If they get audited, their Accountant will contact you.
I had one client (my problem dcm that was such a pain in the arse on so many levels) demand my SIN#. I refused. She tried to convince me to just call her accountant and give it to him. No, sorry. Don't do it.:no:
In-home day care providers are one of only two job codes who don't have to register their business and can process their business income via their personal taxes. One of the down sides is we are obligated to provide our SIN on receipts because there is no means of tracking our income via our business accounts/business number.Quote:
Originally Posted by asheri
However, where you have opted to registered your business, you could provide your reg number instead but you might need to look into whether or not that would require your to do a business tax return and submit your annual accounts.
My accountant stressed the fact that you do not give out your SIN number. Ever. If a client gets audited, they will contact you. Revenue Canada does not require you to give out your SIN number. If you have a business # use that.
So much mis-information on one thread...
CANADA REVENUE AGENCY ABSOLUTELY DOES REQUIRE YOU TO GIVE OUT YOUR SIN. (The only way around this is to register your business which isn't a requirement for in-home day care, and provide the business number instead). If a provider here can show any official documentation from them to the contrary, I'd love to see a link to that information as I am confident it doesn't exist. This requirement is clearly stated in every single document on their site from both the providers end and the parents end. It's also reflected in every single tax return software producers guidelines.Quote:
Originally Posted by Other Mummy
CRA stress you must give it out as parents need it to make the claim. No SIN, no tax credit for the parents.
If you review any and all of the CRA documentation regarding running a day home or making a day care fees claim (for the parent) every single document states the provider's SIN is a requirement.
It's not about the parents being audited because if the SIN of the provider isn't submitted on their tax claim, they DON'T get the credit. It's about the provider.
Providers who issue receipts without SIN are treated with suspicion as without the SIN they can't track the income of the provider. This is when providers get audited. When CRA think they might be understating their income.
PROVIDER OBLIGATIONS
CRA - Using your home for day care guide (http://www.cra-arc.gc.ca/E/pub/tg/p134/p134-13e.pdf) - refer to issuing your receipts, page 20.
Same information, different CRA source...Quote:
Issuing your receipts
As someone who runs a home daycare, you will be expected to issue receipts to the parents of the children in your care. You should do this as soon as possible to give them time to file their income tax returns.
Receipts you issue have to include all of the following information:
■ the name of the person for whom you are preparing the receipt;
■ the name of the child of the person for whom you are preparing the receipt;
■ the amount received for your services;
■ the period you provided these services (from and to dates);
■ your name;
■ your address;
■ your social insurance number;
■ your signature; and
■ the date you signed the receipt.
CRA - Home > Businesses > Daycare in your home > Issuing receipts (http://www.cra-arc.gc.ca/tx/bsnss/tp...rcpts-eng.html)
FOR PARENTS TO CLAIMQuote:
Issuing receipts
As someone who runs a home daycare, you will be expected to issue receipts to the parents of the children in your care. You should do this as soon as possible to give them time to file their income tax and benefit returns.
Receipts you issue have to include all of the following information:
the name of the person for whom you are preparing the receipt;
the name of the child of the person for whom you are preparing the receipt;
the amount received for your services;
the period you provided these services (from and to dates);
your name;
your address;
your social insurance number;
your signature; and
the date you signed the receipt.
Line 214 - Child care expenses (http://www.cra-arc.gc.ca/tx/ndvdls/t.../menu-eng.html) > WHAT PAYMENTS CAN YOU CLAIM?
Quote:
The individual or organization who received the payments must give you a receipt showing information about the services provided. When the child care services are provided by an individual, you will need the social insurance number of the individual.
Claiming Child Care Expenses (http://turbotax.intuit.ca/tax-resour...e-expenses.jsp)
I tend to prefer "official" sources of information like the government web sites but even the less official/someone's opinion which might not be accurate sites have the EXACT same information.Quote:
Eligible Expenses
You can claim child care costs paid to daycare centres, day nursery schools, caregivers such as nannies, day camps, and overnight boarding schools and camps that provide lodging. To be eligible, day camps and day sports schools must have a primary purpose of providing child care.
If you paid an individual person, such as a nanny or babysitter, you must provide her social insurance number. Note that the CRA requires proof of expenses in the form of receipts, and that you may be audited.
"Parents should take precautions when choosing a daycare or child care provider. One of these is to make sure ahead of time that proper receipts will be issued. Child care providers are required to issue receipts showing either their business number or social insurance number.
Tax Time : Claiming Child Care Expenses (http://www.canadiannanny.ca/blog/pos...care-expenses/)
[There are lots of others, should you care to look. As said above, a day care provider is obligated to provide their SIN number and a parent needs the SIN number in order to claim the expense.Quote:
As long as your child or children are under 16 years of age, the parent with the lower net income can claim the child care expenses paid as a deduction on their taxes. In order to make this claim, you must have a receipt to support this claim, whether you are required to submit it or not. The receipt needs to list the caregiver’s name, SIN, and amount paid for child care through the year. If your caregiver refuses to provide this information, you cannot make the claim; if you do and cannot provide receipts to support the claim, CRA will reject the claim.
If you don't want to give out your SIN, the only other option is to register your business and provide that number instead.
EDIT - As a side issue, as from 01-Jan-2015, the claimable limits are increasing in every category by $1000. So parents will be able to claim a max of $8,000 next financial year.
Also Universal Child Care Benefit is being enhance. Parents of children 6 and younger, currently get $100 which will increase to $160. Parents of children 7-17 inclusive, currently get nothing under this benefit, will get $60 a month. This will REPLACE the line on the Federal Part of the tax return, line 367, allows a base tax free amount per dependant child under the age of 18. The base amount last year was $2,234 but the tax credit is for 15% of this amount which works out as being $335.10. As from January 2015, this tax credit is gone.
I have been in business 8 years and have never nor will I ever provide my sin number to anyone except my accountant and Revenue Canada.
Identity theft is running rampant and I protect my identification at all costs.
One of my clients was audited two years ago and I received a letter from the auditor asking me to verify numbers and dates and that was good enough. I have never had an issue personally or professionally with Revenue Canada so I guess that helps.
Quoting mimi:
I have been in business 8 years and have never nor will I ever provide my sin number to anyone except my accountant and Revenue Canada.
Identity theft is running rampant and I protect my identification at all costs.
completely agreed!!!
It never occurred to me that any one could re-write CRA requirements just because they wanted to. LOL How can it be that you can pick and choose which elements you follow?
Whether or not you do provide your SIN number, doesn't change the clearly documented information that you are obligated to and should be.
I agree that identity theft is a concern but that is covered by providing the option to register the business and use that number instead.
Clients who do their own tax returns using software will have missed out on the tax credit if they don't enter the SIN number. Their receipt will be excluded for calculations as being incomplete.
Sorry guys but Rachel is right.... And this is why I pay the $50 every three years to keep my business registered.... Because I do not want to give my sin out to anyone.
Do not provide a SIN, but register the business name, and use the registration number that they give you. The CRA can track you thru the number. My accountant has never had any issues with this, and neither has the CRA.
So in a nutshell, which is what I wrote earlier in the post. You do NOT have to give your SIN number if you have a Biz #. You pay the $50 a year to renew and consider it Fraud Insurance. I would still NEVER give my SIN # to anyone.
I also vote for registering a business. Because I had a case when I was unfortunate and regretted a lot about giving my data and not expressing what I have, I’ve never thought it could happen to me, that’s why I didn’t do this all. But after all the events, I just worked with write my essay online to write all the needed letters to start the process of getting my identity and my business back. And it cost me a lot. But everything went pretty well, and I could get everything back. So take care!