Tax Receipt

[playfelt]

The parent did get the best deal in the sense that just because you don't issue them a receipt if they have their cancelled cheques or some other proof that they paid you the lower fee they are probably claiming the amount on their taxes anyways.

It is also possible that they are being audited and need an official receipt to prove their expenses.

Not sure you will get anywhere asking for the back pay and may have to just go without that but moving forward from the date you give the receipt the parent will be expected to pay the same rate as the other families. I would give them a new contract to sign with the new rate and chances are that will get the truth out of them. Don't be surprised if they are planning to leave care and just getting all of their things in place first.

[Fearlessbaby]

Hey, I have a parent who was asking 4 times for my SIN # in March. I told her that I don't give it out. I've given out many receipts without it and it's always fine. I have a feeling she's a scam artist. I just got another email saying that the receipt isn't valid because there's no SIN. Argh! I am not giving this women my SIN- I don't trust her and she can steal my identity. Can't the CRA just find my SIN if they have my address and name?

[Suzie_Homemaker]

Hey, I have a parent who was asking 4 times for my SIN # in March. I told her that I don't give it out. I've given out many receipts without it and it's always fine. I have a feeling she's a scam artist. I just got another email saying that the receipt isn't valid because there's no SIN. Argh! I am not giving this women my SIN- I don't trust her and she can steal my identity. Can't the CRA just find my SIN if they have my address and name?

She isn't a scan artist. The CRA guidelines for running a day care from your home, tell you that a receipt must have SIN # to be valid. All of the software for parent tax return requires the SIN #. Although many don't like giving it out and miss it off their receipts, once a parent asks for it, you must provide it.
Home day care is one of the few businesses where you do not have to register your business and have a business name provincially. Due to this, you SIN # is how they track your income and it's the only thing that makes your receipt valid if a parent is being audited. You can voluntarily register your business and get a BIN # (business number) instead if you don't wish to give out your SIN but you must give parents one or the other if they request it. The cost of registering your business and getting a BIN is different in each province. Some really expensive and require frequent re-registration, other provinces not so expensive and last longer period of time before re-registration (and payment) needed.
Seriously - the bigger issue is you don't trust your client. If she is trusting you with the care of her child, then you have to trust her with your SIN or BIN - that's a requirement of running a home day care in this country. With all due respect, knowing what we earn, if she was going to steal someone's identity, it's unlikely to be ours.
While I'm sure the CRA can find your SIN can you imagine the fall out if they started doing that. This is clearly outlined as your responsibility to provide.

http://www.cra-arc.gc.ca/E/pub/tg/p134/p134-16e.pdf

[mickyc]

I suggest you give them notice that their rate is increasing effective immediately. If she asks you why then say it is because they now require receipts and you had an agreement to not provide them previously at a reduced rate.

[treeholm]

Whether or not she wanted a receipt, you are still obligated to declare the income. If you ask for the difference now, it is tantamount to admitting that you were working under the table. If a parent told me they didn't need a receipt, I would say they are welcome to shred it, if they like, but by law, I am obligated to provide it. It just boggles my mind that a parent would tell you, basically, to cheat the government so they can pay a lower rate. If I knew from the beginning that a parent wanted me to do something unethical, I could never trust that parent. That would have been a huge red flag for me.

[Crayola kiddies]

I agree you probably aren't going to get any of the money but I would raise her rate effective in two weeks(because that's what my contract says I must give for changes) and make her new rate $3 higher then what everyone else pays. If she stays that's how il you will recoup some of your lost wages.

[sandylynn]

I agree you probably aren't going to get any of the money but I would raise her rate effective in two weeks(because that's what my contract says I must give for changes) and make her new rate $3 higher then what everyone else pays. If she stays that's how il you will recoup some of your lost wages.

That is exactly what I was thinking. Put her new rate $3.00 a day higher than everyone else...if she questions it, say that you had increased your rate months ago...and that is what everyone pays. I had the exact same thing happen to me when I first started this business many years ago. I had made a the same deal with a parent and then she called me and told me she had claimed the income behind my back and that she was being audited. I ended our telephone conversation very politely and told her I would give her a receipt. I wrote the receipt out and waited for her the next morning. When she showed up...(yes...she had the audacity to actually come to my home )....I told her to "get the hell off my property, she couldn't be trusted and that I don't have people in my home that I can't trust or who are back stabbers....I went back and claimed the money on my taxes....

yes...I made a mistake ..should not have made that sort of deal with anyone and have not and would not do it again. Lesson learned....P.S. SHE CLAIMED MORE THAN SHE PAID ME AT THAT!!!!!!!!

[Paulo Gomes]

Yeah I think its totally absurd. Anyway as she is your one of old client I mean two year old so you can actually give them a invoice template and get rid of her.

[Suzie_Homemaker]

Legally, she entitled to a receipt. I would remind her that her new rate will be but not try and back charge her. I presume you declared the income anyway.

[Van]

yes, you have to give her the receipt and give her the new rate that goes with the receipts