Receipt for every cash payment?

[michellesmunchkins]

I give receipts for every cash payment at the time of payment. Then I give each family an official tax receipt in February for the entire amount they have paid in daycare costs. In Ontario, it is illegal for a daycare provider to not provide receipts for tax purposes for the full amount each family has paid. Not sure if this is different in for other provinces though.

[Dayhome Mamma]

I give receipts for every cash payment at the time of payment. Then I give each family an official tax receipt in February for the entire amount they have paid in daycare costs. In Ontario, it is illegal for a daycare provider to not provide receipts for tax purposes for the full amount each family has paid. Not sure if this is different in for other provinces though.

Yup, same in Alberta. I think that stands true for all the provinces. It is technically illegal to not claim/give receipts. But a lot of people do this work under the table as well with pure cash which is never claimed, which is "illegal", but none the less, it is done. I lived in Toronto most my life before coming to Calgary and its even more prominent there.

[Inspired by Reggio]

Yup, same in Alberta. I think that stands true for all the provinces. It is technically illegal to not claim/give receipts. But a lot of people do this work under the table as well with pure cash which is never claimed, which is "illegal", but none the less, it is done. I lived in Toronto most my life before coming to Calgary and its even more prominent there.

I get there is a 'culture' of working under the table in our society however I do not get WHY people do this in THIS industry ... because seriously in this line of work you can easily claim ALL your income honestly and openly and by the time you add your 'expenses' to doing the business you only end up paying basically your CPP portion which is an investment in your retirement anyway...and heck I know people in this industry who operate illegally, claim all their income and after expenses get a REFUND still because they are single parents and get all those 'tax credits'.

If you have no CPP on record with the Canadian government you get no CPP upon retirement ... and do not know about others but I find it hard to save additional RRSP contributions on my income alone - if not for my spouse making a good income and getting a pension from his job we would have no savings and be in trouble come retirement and well I am a planner I need to keep in mind what happens if come retirement I am SINGLE again and have to rely solely on myself!

Plus I do not understand why clients go alone with the only getting HALF their receipt or NO receipt at all - they are entitled to ALL of it for their own income tax purposes - claiming childcare expenses can knock a client into a different lower tax bracket and open up many other tax credits to them and either reduce their own tax paid or get them a higher refund.

I admit I am too paranoid - but I would be afraid a client would 'agree' to an arrangement like this and than change their mind and REPORT me after the fact ... saving a couple bucks a year in tax is so not worth the potential back tax of an audit not to mention FRAUD charges for openly engaging in arrangements with clients to defraud the government of income tax

Also with paying employees under the table ... be careful there as well because not sure about other provinces but in Ontario you cannot be required to 'opt out' of your employment standards act entitlements ... meaning that an employee can agree to one thing with you and for months get paid under the table and than still go to the Labor Relations board and COMPLAIN that you made them contract out of their ESA rights and they were desperate for work so agreed but now they want their EI they are entitled too, they want their CPP payments made, they want XYZ that 'employees' are entitled to from you and if you are found to have been paying them illegally under the table YOU will be owing all that BACK PAYMENT in employer remittances PLUS being fined by the Labor Relations Board... this the RISK is so not WORTH it at least IMO!

[Sandbox Sally]

I only issue receipts once per year, in February. If families wanted me to provide them weekly, I would, but nobody has ever asked.

Yup, same in Alberta. I think that stands true for all the provinces. It is technically illegal to not claim/give receipts. But a lot of people do this work under the table as well with pure cash which is never claimed, which is "illegal", but none the less, it is done. I lived in Toronto most my life before coming to Calgary and its even more prominent there.

Regarding Toronto, this may have well been the case in the past, but I personally know at least a dozen home daycare providers, and ALL of them without exception are on the books.

[Inspired by Reggio]

I give receipts for every cash payment at the time of payment. Then I give each family an official tax receipt in February for the entire amount they have paid in daycare costs. In Ontario, it is illegal for a daycare provider to not provide receipts for tax purposes for the full amount each family has paid. Not sure if this is different in for other provinces though.

Yup this is me as well.