Flex - I guess it depends on how much you make. Our teacher said that as a provider you can earn up to around 25K a year and probably not pay taxes. If someone is making 50-60K then I am sure that is a whole different story. I have never even earned to 25K with the daycare because I operate under capacity so it is different. So far I haven't had to pay. This year I took on another full timer which will bring my income up quite a bit and I am thinking of adding another so I will probably be crying April 2013.
I guess if someone has 5 full time kids then they can probably expect to pay