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  1. #1
    Shy
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    Red face Writing receipts and providing SIN to clients...

    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!

  2. #2
    Euphoric ! bright sparks's Avatar
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    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.

  3. #3
    Euphoric !
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    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)

  4. #4
    Starting to feel at home...
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    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

  5. #5
    Euphoric !
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    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.

  6. #6
    Starting to feel at home...
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    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!
    Last edited by Daisy123; 11-27-2014 at 05:55 PM.

  7. #7
    Expansive... Other Mummy's Avatar
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    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.

  8. #8
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    Quote Originally Posted by asheri View Post
    i am pretty uncomfortable with providing my SIN but is that my only option?
    thanks in advance!
    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.

    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.

  9. #9
    Expansive... Other Mummy's Avatar
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    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.

  10. #10
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    So much mis-information on one thread...


    Quote Originally Posted by Other Mummy View Post
    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.
    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.

    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.

    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.
    Same information, different CRA source...

    CRA - Home > Businesses > Daycare in your home > Issuing receipts (http://www.cra-arc.gc.ca/tx/bsnss/tp...rcpts-eng.html)

    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.
    FOR PARENTS TO CLAIM

    Line 214 - Child care expenses (http://www.cra-arc.gc.ca/tx/ndvdls/t.../menu-eng.html) > WHAT PAYMENTS CAN YOU CLAIM?

    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)

    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.
    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.

    Tax Time : Claiming Child Care Expenses (http://www.canadiannanny.ca/blog/pos...care-expenses/)

    [
    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.
    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.

    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.
    Last edited by Rachael; 11-28-2014 at 08:42 AM.

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