Pricing with no receipt

Hello all,

I am hoping to get some information regarding pricing without a receipt.

A little background on this is that a good friend of mine is a stay at home mom that lives very close to my house in Orleans. I trust her completely as our kids play together all the time. So she as offered to watch our 3 kids when I return to work. I am looking for before and after school care for my 5 year old and 7 year old, 4 days a week and full days for my 1 year old daughter 4 or 5 days a week. Just wondering what would be a appropriate rate? Thank you

Even as a stay at home Mom, she's earning income by looking after other people's (your) children and so she must follow day care regs for your province, even if it just your children and hers. She be classed as unregistered/private day care so if she has more than one child, again depending on province you live in, she might not be allowed to take all 3 of yours.

She also has to declare income from your children to CRA otherwise it's tax fraud. It not matter if she call herself a babysitter, or doing you favour, by being paid it income.

As parent in Canada, you can claim tax credit on child care expenses. Up to $8,100 for your 1 year old, up to $7,000 or $8,000 for your 5 year old and up to $5,000 for you 7 year old. She must give you receipt otherwise you missing out on tax credit to for child care expenses up to $20,000 per year.

With no receipt, you get no tax credit.

Also, if she declare income to CRA, she be allowed to claim expenses. Part of her power, water, mortage interest or rent, internet, insurance, can all be claimed by her as a tax credit which will lower her tax bill to almost nothing. She can also claim 100% of cost of food she give your children as long as she keep her receipts. Again, this lower her tax bill and save you extra cost of providing food.

Working for cash, mean no tax credit for either you, and a potential fraud charge plus investigation by CRA. There is a tip off line, where anyone can call and report her. Is it worth that risk to put your friend in such position?

The rate for child care, both with receipt or without, varies on location. Here not much difference in prices. If you want rate for your area, you need to say where that is, or use the home page, type in your postal code and see what local rate is.

To claim this, you need a receipt from your day care provider (day care provider means anyone who is paid to look after your children who is not a relative, like your friend).

It may not be as simple a process as you think. She will be considered an independent childcare provider by the Province of Ontario and be subject the rules of the Childcare Modernization Act that will take effect in August of this year. There are age restrictions she may need to consider, etc. She is required by law to give you a receipt so that you can claim the amount paid on your income taxes. Also as a home based provider there are many deductions she can make from the money she earns so it is in everyone's business to do everything above board and not under the table.

I am also in Orleans actually. There are a couple facebook groups where information on the new bill is being shared as well as this is a great support organization for childcare providers and would be able to help your friend get set up to provide legitimate legal childcare. www.ccprn.com

Rates average between $35 and $45 a day for full time with $40 being the most common. For before and after school range is of course less.

Would need to know the ages of your children and the ages of the friend's children to be able to tell you if it meets the new regulations or not.

Agree with the above posters. Even if you both refer to it as "babysitting" and she's only watching your children and hers, if it's on a regular basis and more than 10 hours per week, legally speaking, she is a home daycare provider. She's legally required to give you a receipt, whether she wants to or not, whether you want it or not - and why wouldn't you? You can claim everything you pay for childcare and get a large break on your income taxes for daycare for 3 kids.

By taking payment under the table and not declaring it to the CRA, she is actually committing fraud. Anything earned over $50 a week needs to be declared and have taxes paid on it. She can deduct expenses such as food costs, toys, part of her hydro costs, etc, on her taxes and she won't end up paying too much if she's only making income from you, but she still needs to declare it.

There are so many hard-working, legitimate, above-board providers around Ontario that are being hurt by the new legislation that has come in, and it's been pushed through partly because of people breaking the law. People warehousing kids, working under the table, and breaking the law has affected us all in a very negative way. You're not going to find many legit providers that are ok with hearing about a situation like this.

Plus, even though you trust her, and I don't doubt her motives or capabilities, but doing everything above-board protects you both. You should at the very least sit down and write out a basic contract to prevent a good friendship from going sour very quickly. What is she going to feed your kids? Are they going to be allowed to watch TV? How will she discipline them? What if you pick up late or start asking her for 5 days a week instead of 3 or 4? What if one of you wants to end the arrangement for whatever reason? Doing everything in a professional, legal, legitimate way will prevent a lot of potential headaches later.

I agree with all the above. Don't help your friend commit tax fraud.

Secondly, as noted above. Get a contract. Nothing ruins a friendship like a spoken deal gone wrong. In the very least agree, in writing, on days of care, hours of care, how many sick days she gets, how much vacation she can take, how much notice you get for her vacation and how much notice you both need to give to end the deal.

What will you do when she has doctor appointments, sick days, when she takes vacation. As great as it sounds to leave your kids with trusted friends...home daycare providers have contracts for a reason and it protects both parties. A friend caring for 3 children 3-4 days a week is a home daycare provider they need to plan like one, even if they are only working with one family.

Good luck...please read all the other comments and take the advice seriously.

Also, how many children does she have? It is a very large fine if she will have more than 5 children, including her own, at any point in a day so she does need to pay attention to the new laws being put in place right now as she is impacted by this.

Oh, to answer your question if I were your friend I would be looking to charge $50 a day for your 1yr old and $20 a day for each of your older children for before/after school care. So, you would be paying me $90 a day. Frankly I'd likely charge more because working for only one family means I am making less money but still working full time it just isn't worth my while to be working a full day for a couple bucks an hour.

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Originally Posted by sandylynn

Cracks me up! People are so eager to come crashing down on home daycare providers who don't give receipts....(not that I agree with not giving receipts)....house cleaners, Waiters who don't claim tips....odd job people....and so on...who don't claim income!!!!! I had my lawn aerated ...40.00....did I get a receipt....NO...did he claim it? DON'T THINK SO....

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I don't know...when it comes to full time care of your child it just seems like there is all the more reason for it all to be on the up and up. A one time aeration of the lawn...if they do a crappy job you get screwed but in the end there isn't much harm done so you suck it up. It just seems different for something that is full time, long term and involves the care of your children! We've had those people come to the door...they just turn me off with the slimy sales pitch of the ever lowering prices, no taxes, no receipt quick deal. I would rather pay more for someone I trust is on the up and up.

My friend is an accountant for Revenue Canada. When she moved the movers offer after the job for her to pay cash and skip the taxes. Lol...she just paused, took and breath and noted she preferred a receipt. She didn't bother to inform them she works for the people they are trying to cheat because she had her newborn in hand, was home alone and well it is just kinda awkward. Point being...you really are risking it by trying to do it under the table as you never really know!

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I AM ALL FOR IT...and so would everyone else be....

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No. I pay, I want receipt. I legally entitled to a receipt.

So no, not everyone else is all for it.

So annoying when people work under table and then get inflated child credit because more is paid for understated income. I have no issue reporting people to CRA for tax fraud. Breaking the law, is breaking the law. If you are okay ignoring, that up to you but not everyone else is.

Can report tax fraud here or 1-866-809-6841 (toll free). CRA not give out your name but do warn that person being reported might figure out it you, if you just complained about it to person.

I will report a rapist, a child predator, a shop lifter and any one breaking law. Since I expect law to protect me if I am victim, I not have double standard and expect to pick and choose which law I like and ignore those I not like.

A lot of people working as nannies and daycare providers do not claim their taxes! I know people who claim I know some who don't claim or give anything, I know some who just buy a booklet from the dollar store and scribble a signature that's not recognizable but don't claim anything on their end, I even know a person who has 5 kids and receives welfare and doesn't claim on her end but gives those dollar store receipts and has never keep caught. People do all sorts of things and for such a low pay. Would are paying her for one full-time spot and 2 before and after school. That is a really low income and I wouldn't waste my time claiming their but how knows who these families worked out between them.

SMH ..... Seriously ?????? It's breaking the law !!!! It's like saying well I only stole pack of gum and it's not really that much money and.... well ..... Just not worth paying for .... Illegal is illegal ....

I don't get it! Yes I understand u have to claim and I do with my daycare. But all those 16 yr olds or even college students who babysit evenings and wkends to make extra money do not claim it! I see nothing wrong with this stay at home mom who obviously doesn't need the income but is wanting to help her friend out take these kids at a low rate and not claim. That's just me though :)

First off let's not get too dramatic here as no one went into a store and stole something. In Texas it's illegal to eat a pickle in a bathtub does that mean I'm not going to do it just bc it's illegal? So let's arrest the waitress for not claiming their tips, or the hair dresser for not claiming, or the 16 year old babysitter who by law is of age to work and should claim that money too?

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Originally Posted by babydom

I don't get it! Yes I understand u have to claim and I do with my daycare. But all those 16 yr olds or even college students who babysit evenings and wkends to make extra money do not claim it! I see nothing wrong with this stay at home mom who obviously doesn't need the income but is wanting to help her friend out take these kids at a low rate and not claim. That's just me though :)

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That's exactly how I see it! I have a cop as a client who is well aware of the law and hired a nanny who was in university and paid her under the table ? Technically they both broke the law.

I would report them all.

It is illegal. Period. No justifications on level of illegal. Anyone earning more than $50 a week is legally bound to declare that income. Maybe, if every didn't enable people working illegally, the taxes we pay to cover their unpaid taxes, would not be so expensive.

But there is justifications on the levels of something that is illegal. That of petty crimes such as stealing gum or not claiming when your babysitting vs something more serious like robbing a bank. If we bothered with every little things then our taxes would stay inflated if not increase as we would have to hire more people such as reveune Canada employees, bylaw staff, police etc. Hiring a police officer with a 30 000-50 000 salary to catch gum stealers and late night babysitters.

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Originally Posted by TinyTwigs

But there is justifications on the levels of something that is illegal. That of petty crimes such as stealing gum or not claiming when your babysitting vs something more serious like robbing a bank. If we bothered with every little things then our taxes would stay inflated if not increase as we would have to hire more people such as reveune Canada employees, bylaw staff, police etc. Hiring a police officer with a 30 000-50 000 salary to catch gum stealers and late night babysitters.

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We wouldn't have to pay for more law enforcement if people accepted and respected the laws and didn't down play them and break them because it didn't suit them. It's the mentality that 'it was only a pack of gum' that allows more and more people to down play their crimes. The pack of gum soon becomes a new pair of pants, a new cell phone, someone else's car because so many people just shrug it off like it is no big deal.

Stealing that pack of gum has the same penalty as stealing a new phone as stealing most cars. The law classifies it as theft under $5,000 and theft over $5,000 on paper, later on ll your record shows is you committed the crime of stealing something under $5,000. It doesn't say "meh it was only a pack of gum so don't really worry about this charge!

The whole...well other people do it and 'well if a teenager doesn't have to claim their earnings then why should I' really just sets the tone for the allowance of breaking 'doing small crimes' bigger and bigger. Not a great mentality and no one benefits from it.

Also, pretty sure the stats show that the person that freely steals the pack of gum is often going to escalate because they get away with it and people condone it. We really shouldn't shrug this off and should hold them accountable.

Revenue Canada has it set up so the moms that are staying at home and earning a bit helping a friend by watching their children isn't penalized as much as the head CEO's making the big bucks. Typically the stay at home mom is making less than the amount they set before taxes are taken off. The system does rely on everyone being honest and contributing their fair share no matter how low it is.

I only watch one DCK these days, make peanuts doing it. I still claim what I make.

My husband is a lawyer and he says there is justification as the police department won't even become involved to a certain extent for items/issues under $20 and this would be called "petty theft" and will be charged as misdemeanor (with infractions rather than a diversion program).
So yes, I would say there is justification and difference between a pack of gum vs $300 in BestBuy electronics even though it IS under the same law.

As for you stating that people who choose to steal and get away with it will do it again - I believe that is not true. For some it may be, but you cannot make the same assumption for all otherwise there wouldn't be programs to help these people (rehab for drug addictions, etc.).

It also then doesn't make you any better than other people who claim home daycares are dangerous since that little girl died so it must be the same as all other private ones correct? Stereotype and judgement are the words.

Despite being fraudulent, IMO, not claiming income is just plain stupid! The examples given of people not claiming because "it's not much money" make no sense. If you don't make that much money you are below the taxable threshold anyway. Not paying into CPP is extremely short sighted. If you don't pay in, you don't collect. Personally, I plan to enjoy my retirement and not live on ramen.

Legalities aside, as a parent if you don't get a receipt you can't claim it as a tax deduction because you need to provide proof and identity of the provider. As a provider, not giving a receipt or claiming the income is just daft because you lose out on soooo many deductions as business expenses! And in most cases, with a small income the provider will owe little to nothing but can still pay CPP. As for a discounted rate with no receipt, WHY? You are still caring for 3 children so why lose money.

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Originally Posted by TinyTwigs

My husband is a lawyer and he says there is justification as the police department won't even become involved to a certain extent for items/issues under $20 and this would be called "petty theft" and will be charged as misdemeanor (with infractions rather than a diversion program).
So yes, I would say there is justification and difference between a pack of gum vs $300 in BestBuy electronics even though it IS under the same law.

As for you stating that people who choose to steal and get away with it will do it again - I believe that is not true. For some it may be, but you cannot make the same assumption for all otherwise there wouldn't be programs to help these people (rehab for drug addictions, etc.).

It also then doesn't make you any better than other people who claim home daycares are dangerous since that little girl died so it must be the same as all other private ones correct? Stereotype and judgement are the words.

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I'd just rather be the person trying to reason that it is best to be on the better side of the law than the person, like you, that spends a lot of time pulling out examples and loop holes that seemingly justify being on the wrong side of the law. Wrong is wrong no matter how much you try and make it seem right.

Wrong is wrong just because it is of lower severity doesn't make it right. Just because the police doesn't have the man power to fully become involved and classifies it as petty theft doesn't mean it isn't theft and doesn't make it right.

My moral compass just makes it so I can't agree with you on this.

How would you know what side of the law I am on? Just bc I don't see the big deal in someone taking in ONE child for a friend or babysitting nights without writing receipts doesn't make you any better? There are no loop hole only FACTS. Someone peoples don't have an issue over every little thing.

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Originally Posted by sandylynn

Suzie_Homemaker...! IF YOUR DAUGHTER WAS IN COLLEGE AND SHE MADE 60.00 A WEEK DURING THE SUMMER BABYSITTING AT NIGHT...ARE YOU TELLING ME YOU WOULD MAKE HER CLAIM IT ON INCOME TAX....COME ON

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Actually sandylynn, my daughter made $75 a week driviing one of my daycare children to school last year and I DID make her claim it and file a tax return! And she was 21. Filing taxes allows them to get the GST credit and the Trillium credit.

Glad to hear...but I do still believe your case is far and few between!

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Suzie_Homemaker...! IF YOUR DAUGHTER WAS IN COLLEGE AND SHE MADE 60.00 A WEEK DURING THE SUMMER BABYSITTING AT NIGHT...ARE YOU TELLING ME YOU WOULD MAKE HER CLAIM IT ON INCOME TAX....COME ON

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My son made $65 a week in Pizza Hut and yes, he did claim it.

It good that TinyTwig has husband who lawyer as she might need probono legal help with these morals. Maybe he give you discount to?

How do we know what side of law you on? Because you told us. You on side of tax fraud when you think it okay. This doubly whammy to most people. Not only do tax avoiders skip payments that go towards service they benefit from, but also, they artificially inflate the income based child credit for own children, meaning those who are paying taxes pay twice for the same selfish person.

It good that you can hide behind screen name as I would have no issue in flagging both of you to CRA if had real names. Maybe someone who work for CRA and smarter than me, have enough information from reading both your posts on this public forum to take action.

Since only action I can take is to block you both, that what I will do as not interested in views from people who endorse illegal activities. Their morals and sense of common decency likely screwy anyway.

I personally don't see the big deal. We hired a guy for a few weekends to help my husband, paid in cash. I doubt he claimed it.

When I was a teen and babysat I never claimed it either.

I think there is a big difference in someone opening a daycare and not claiming her income compared to a mom looking after her friends kids and getting a bit of cash as compensation. Yes it may be "against the law" but I can guarantee have all "broke the law" at one point or another in some aspect of our life.

Each to their own. As a parent I would want the tax receipt so would not use someone that wouldn't give one.

For those who say report! Well that is what is wrong with society these days IMO. Too many people putting their noses in other peoples business.

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Originally Posted by mickyc

For those who say report! Well that is what is wrong with society these days IMO. Too many people putting their noses in other peoples business.

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What is wrong, is that too many people think the are above the law and the rest of us, pay double for their views.

Three children being looked after is above the level some province allow. So whether it Mom or daycare provider, it is an income equal to an above board provider.

It reason like this home day care have bad name.

Here, a provider just closed down by Community Service. She have 15 children in her care, We allowed 7. But hey, she was just a mom looking after kids trying to earn a buck.

Another provider on mat leave, refused receipts to her clients because she earned more than $50 a week on top of mat pay. She also closed her door Friday, texted client on Saturday and began new job on Monday. But hey, she was just a mom looking after kids trying to earn a buck.

One more - agency approved this time. Caught out the week before March break when parent come early for child. Door unlocked, parent walk in to find own daughter (age 2) trying to put on shoes to go home. Two 3 year olds wondering around house too. Where was carer? Down road, meeting own kids off school bus. Didn't see parent pull up because of snow bank. But hey, she was just a mom looking after kids trying to earn a buck.

Wouldn't want to report anyone for putting kids at risk, for tax fraud, for being deceptive to parent wanting tax credit. No need to anyone to step up when kids at risk. Would not want to be viewed as nosy after all.

Let's all turn blind eye to rapist, murderer, tax dodger, thief, benefit fraud. After all, not affect us if these people on streets, artificially inflating costs for the honest folk.

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Originally Posted by Suzie_Homemaker

My son made $65 a week in Pizza Hut and yes, he did claim it.

It good that TinyTwig has husband who lawyer as she might need probono legal help with these morals. Maybe he give you discount to?

How do we know what side of law you on? Because you told us. You on side of tax fraud when you think it okay. This doubly whammy to most people. Not only do tax avoiders skip payments that go towards service they benefit from, but also, they artificially inflate the income based child credit for own children, meaning those who are paying taxes pay twice for the same selfish person.

It good that you can hide behind screen name as I would have no issue in flagging both of you to CRA if had real names. Maybe someone who work for CRA and smarter than me, have enough information from reading both your posts on this public forum to take action.

Since only action I can take is to block you both, that what I will do as not interested in views from people who endorse illegal activities. Their morals and sense of common decency likely screwy anyway.

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My husband is a lawyer,too bad he isn't a psychiatrist so I could give you a discount for some therapy sessions because only a crazy person reacts the way you go. Grow up lady and get off your high horse!

As for your son I am more then positive he made at least minimum wage and I am sure as you are well aware of minimum wage since clearly you think you work for the CRA that a mother watching her childs friends makes a lot less then that which is why it isn't a big deal.

Go ahead report whatever you would like to crp and I will make sure to report you to the mental health and wellness service! GROW UP

How dare you bash someone for making their own opinion! Some people are more easy going then others and don't feel to the need to report everything little thing and then some people are like you who have nothing but time or feel the need to get involved in everyone business and try to justify it by "we can't turn a blind eye"!!
Sorry to break it too you but not everyone who doesn't live their life by the books its some kind of criminal. I for one never ever said on this form that I run my daycare illegally all I said is if I was in a situation where I friend needed help I would take in their one child with a claiming! If someone people choose to do that that's their propagative not yours!

Wow, I got a little more information/opinions then I thought! Just needed a little insight regarding pricing and seems like I opened a can of worms!! but thank you for the feed back

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Originally Posted by Atos

Wow, I got a little more information/opinions then I thought! Just needed a little insight regarding pricing and seems like I opened a can of worms!! but thank you for the feed back

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No problem! :)

I hope everything works out and do what it best for you! Good luck :)

I would charge 45$ a day for your one yr old and 20$ each for the school kids. So 85$ a day. And then 45$ per child on pd days and school holidays so 135$. Good luck!

When it comes to someone taking in multiple families then that IMO is more like a daycare and receipts should be provided. But for someone taking a friends kids then it is not the same as what I do. I am sorry Suzie I do not agree with you. Neglect and not claiming income are not even the same thing so not good examples.

So you are telling me you have never ever broke the law??? You don't speed, never parked where you aren't supposed to, never texted while driving, never been over in your numbers even as little as 5 minutes? Do you call the cops on people you know who smoke illegal substances in their down time?

Obviously if there was a clear sign of abuse or neglect I would speak up but for the most part I let people live their lives, make their own mistakes and suffer their own consequences. I am not perfect and don't follow every single law perfectly. So who am I to say which law others need to follow?

I have never broken the law. I have never had a ticket because I do not speed. I not text - period, so no, not done that either. I never parked where I should not because not worth the ticket or clamp cost. I not know anyone who smoke drugs other than one person who have medicinal marijuana and the paper work for it. I never stole, I never been arrested. Never driven car without license and insurance. Do not drink so never drive over limit either.

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So who am I to say which law others need to follow?

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But that what you did say. You said if neglecting child, you would report. You said if smoking illegal substance, you would not report. You said if someone care for one child from 3 families, you would report. You said if someone care for three children from 1 family, you would not report.

You are saying exactly which law you feel you should pretend not being broken but which law you not ignore.

That not job of citizens. It job of courts, investigators, police.

It very double standard to say you would report certain law breaker and not others. You applying own moral compass to your view of crime. There are people employed to make that decision.

When lines blurred like that, there risk then of not report serious offenses if you have personal connection to law breaker. It slippery slope.

I would only report if there was neglect or abuse. Only reason would be because child needs to be protected and cannot report it themselves. I would also make sure I had proof and no go by something I saw at a glance. I never said I would report a parent who took 3 families and didn't claim income. I just said I think it is different from what I do but I would not report.

Wow, well good for you for being such a law abiding citizen. The point I am getting at is if you were to report someone for not claiming income you should be reporting others for the laws they break. You would be constantly reporting people. I have better things to do with my time. The only thing you can control is you. This is where I go back to my original statement where I said too many times others poke their nose in others business.

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Originally Posted by mickyc

I would only report if there was neglect or abuse. Only reason would be because child needs to be protected and cannot report it themselves. I would also make sure I had proof and no go by something I saw at a glance. I never said I would report a parent who took 3 families and didn't claim income. I just said I think it is different from what I do but I would not report.

Wow, well good for you for being such a law abiding citizen. The point I am getting at is if you were to report someone for not claiming income you should be reporting others for the laws they break. You would be constantly reporting people. I have better things to do with my time. The only thing you can control is you. This is where I go back to my original statement where I said too many times others poke their nose in others business.

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Thank you!

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Originally Posted by Suzie_Homemaker

What is wrong, is that too many people think the are above the law and the rest of us, pay double for their views.

Three children being looked after is above the level some province allow. So whether it Mom or daycare provider, it is an income equal to an above board provider.

It reason like this home day care have bad name.

Here, a provider just closed down by Community Service. She have 15 children in her care, We allowed 7. But hey, she was just a mom looking after kids trying to earn a buck.

Another provider on mat leave, refused receipts to her clients because she earned more than $50 a week on top of mat pay. She also closed her door Friday, texted client on Saturday and began new job on Monday. But hey, she was just a mom looking after kids trying to earn a buck.

One more - agency approved this time. Caught out the week before March break when parent come early for child. Door unlocked, parent walk in to find own daughter (age 2) trying to put on shoes to go home. Two 3 year olds wondering around house too. Where was carer? Down road, meeting own kids off school bus. Didn't see parent pull up because of snow bank. But hey, she was just a mom looking after kids trying to earn a buck.

Wouldn't want to report anyone for putting kids at risk, for tax fraud, for being deceptive to parent wanting tax credit. No need to anyone to step up when kids at risk. Would not want to be viewed as nosy after all.

Let's all turn blind eye to rapist, murderer, tax dodger, thief, benefit fraud. all, not affect us if these people on streets, artificially inflating costs for the honest folk.

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Suzie_Homemaker..... you have taken something....turned it around and have blown it ...so out of proportion....it's RIDICULOUS! REALLY????? Get a life! It's no wonder some people get off this site....because of people like you....I'm so done with this nonsense.....

I'm not sure how I feel about this. I can see both sides actually. I think it will come down to what you and your friend decide but how will you claim childcare costs if she isn't claiming it as income herself?

Typically, we think of babysitting as an evening or weekend job, usually done by a teenager. An adult caring for 3 children during the day is usually classified as a daycare provider or nanny. I do think that daycare providers and nannies SHOULD claim their income and SHOULD follow the rules. However, I can also see why this friend would want to be classified as a babysitter as most babysitters don't claim their income. Are you okay with not getting a receipt for childcare costs for income tax purposes?

It's not such a black and white situation IMO.

Atos if you want to ask your friend to look after your children and she agrees to do the favour for you what arrangements you make between you both as to the money that will change hands or the services you will do for her I think are fine. The caution I would give is that often the "illegal" home daycare situations started out just like this - a lady caring for the kids of a neighbour and than another one asked and she felt guilty saying no so took them too and eventually was way over the legal limits. She still didn't consider herself a daycare provider BUT the law does. You still haven't said what the ages are of your children or your friend's children but there are legal laws in the province that they can enforce in terms of fines and penalties. The government isn't as concerned about what one family does with their own children but again if any other child from a second family either a neighbour, friend of one of your neighbour's kids is in the home to play then the neighbour would be subject to the same ratios and fines of a daycare provider. This includes friends over after school, etc. As tempting as it is come tax time you are going to wish you had gotten receipts from the neighbour. And your neighbour is going to wish they had been kept all of their expense lists because it benefits both of you. For you there is nothing you would need to do just pay your friend as agreed to. It is your neighbour that would need to read up on what she can and can not claim against what you are paying her. That means once tax time comes you have a deduction from your taxes and the amount your friend can claim will be about half of what you are paying her and will likely leave her untaxed anyways but also as some mentioned able to contribute to Canada pension as a working person to be claimed when she retires.

So my kids ages would be 1.5years old for full days, a 5 and 7 year old for before and after school care. The friend of ours has a 2 year old that stays home, a 5 year old and 8 year old. So it would be 6 kids total but seeing that her eldest is above 6, I believe we are under the new limits, correct? Going by the typical rate of 40/day and 20/day(before and after), I think I would willing to pay 35/day and 15/day without receipt. Putting aside all the fraud, illegal. blah blah blah....Not sure if at tax time would benefit me more to pay regular rate with receipt or lower rate without receipt.

Age wise then she would be within legal limits provided no other child came to her house while your children are there as she is already at the 5 child maximum. When you look at your tax form the deduction for a child from your taxes would certainly benefit you as it is several thousand dollars per child. You will need your friend to be willing to give you her SIN number along with the receipts as that is what you need to claim by the rules although some have said if the parent just puts down the name and address of the person they have gotten away with it. There is a great booklet that outlines the daycare end of things on the Revenue Canada website called using my home for daycare. If your friend does go that route suggest that she pay the $25 and join the www.ccprn.com to get support, questions answered and to have access to workshops and resources she can use with the children which will benefit her child as well. Local providers would be more than happy to help your friend get started. One of the things that hasn't been mentioned is that she should contact her insurance provider to ask about a ryder on her home and/or auto policy for looking after other people's children. If anything were to happen she would not have insurance to cover the incident without it. Her insurance will consider her a provider if she cares for the children daily in her home.