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  1. #1
    Shy
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    Putting away for taxes

    Hi, I'm just opening a home daycare and I have no idea on how much to put away for taxes? Can anyone help me with this. Thank you so much :-)

  2. #2
    Expansive... BlueRose's Avatar
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    I put 15% of each pay in the bank.

  3. #3
    Euphoric ! bright sparks's Avatar
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    Really Blue Rose thats an awful lot to put away if you have lots of right offs. I calculated how much my top line would be for a full year at capacity, then found out what 15% of it was. In the 6 years that I have filed my taxes I have had 2 years where I have made within 2000 of my maximum potential income and my tax and cpp combined have been less than what that comes to. I end up paying at most 7.5%. I always air on the side of causion, prepare for the worse case scenario with everything so I think that 7.5-8% should be more than adequate.

  4. #4
    Euphoric !
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    I try my best to budget for one daycare child's fees to be set aside to pay for things like taxes and then anything left over is spent on the outsidethat summer including new toys, bubbles, flowers, etc. or upgrades.

  5. #5
    Shy
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    Ok so I feel dumb for taking 25% off and saving it for tax time. Really 8% is enough? That is a big relief I can have more income lol. Always a good thing.

  6. #6
    Shy
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    I was told to put away 30% lol So I'm very happy I can put away less!

  7. #7
    Euphoric !
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    My accountant called today with the results of my taxes and after all my deductions it worked out to 20%.

    Ok accountant just called back and he hadn't included my property taxes or my mortgage interest and so the new calculation works out to 15% (including CPP)
    Last edited by Crayola kiddies; 04-08-2013 at 04:54 PM.

  8. #8
    Starting to feel at home...
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    Hst

    My accountant said 10% but that if I make over $30,000, I need to think about paying HST- has anyone charged parents HST?

  9. #9
    Expansive...
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    Quote Originally Posted by Fearlessbaby View Post
    My accountant said 10% but that if I make over $30,000, I need to think about paying HST- has anyone charged parents HST?
    Home daycares are exempt from HST. You can google HST exemptions and the Revenue Canada page will list childcare/daycares.

    I made over 30K last year and I had to pay back about 11.5% of my income even despite a lot of write offs

  10. #10
    Euphoric !
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    I don't know about percentage, I'd have to ask my accountant (I'm sooo bad at math haha) but I have paid back about $2500-$3000 each year if I remember correctly. (after deductions and such, I technically only make around $15G though) I like to save throughout the year so I can pay it off in one shot and not have to pay interest. This year I have been awful at saving but hopefully can get back on track as I really don't want to have too make payments!!

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