Expanding Daycare

[Oneluckymom]

I know there have been a lot of threads on this, but I am really considering expanding to a large daycare. However, can I get away with hiring as an independent contractor? There is an agency I called and they provide the substitute or assistant and you pay them, but it was like $15.99 an hour !! Yes an hour...that is supposed to cover workers comp, etc.

I cannot afford to pay that much. Is it possible to hire out on your own and make extra income with an employee?

[cheerfuldom]

There are plenty of people that hire their own employee! You did need to start with researching your state laws regarding hiring an employee at your daycare as well as the issues surrounding taxes and such. Once you figure out what your costs there would be and what the pay would be, you can figure out how many kids you would have to add in order to hire help. It definitely can be and is done all the time.

[snbauser]

You can definately hire your own employees, I have 3. But you usually hire them as employees and not as an independent contractor. Look up the difference on the IRS website but typically they are employees.

[Oneluckymom]

You can definately hire your own employees, I have 3. But you usually hire them as employees and not as an independent contractor. Look up the difference on the IRS website but typically they are employees.

Do ypu do all your own tax stuff on your employees? How much should I expect to pay in Workers Comp a year? Also, lets say you have some high school kids come help out a few hours a day and you pay them something every week...do you have to cover them also? I'm so confused about it all .

[daycare]

I'm going through this now.
No you can't hire someone to be an independent contractor to be your assistance. An independent contractor is someone who specializes in a particular area and always provide their own supplies. Example I have a musical instructor come in once a week. He is an independent contractor.
Finding workers comp to underwrite daycare has been a nightmare.

Between the pay roll and workers comp which in CA YOU MUST have even if you only have 1 employee. So far I'm looking at around $150 a month just for work comp. then having to file W2 and tax with holdings, I may be paying out another $112.00 month. So before I even have my employee step in the door, I'm out over$200.00

[Blackcat31]

Here are several great articles about this subject from Tom Copeland's site: One of them does a great job explaining the difference between an independent contractor and an employee.

http://www.tomcopelandblog.com/.services/blog/6a0133f3fc5805970b0133f3fc770b970b/search?filter.q=employees

[Oneluckymom]

I'm going through this now.
No you can't hire someone to be an independent contractor to be your assistance. An independent contractor is someone who specializes in a particular area and always provide their own supplies. Example I have a musical instructor come in once a week. He is an independent contractor.
Finding workers comp to underwrite daycare has been a nightmare.

Between the pay roll and workers comp which in CA YOU MUST have even if you only have 1 employee. So far I'm looking at around $150 a month just for work comp. then having to file W2 and tax with holdings, I may be paying out another $112.00 month. So before I even have my employee step in the door, I'm out over$200.00

THIS ****S !!!! How on earth does anyone afford an employee in daycare then? I am really concerned about not making enough income to make it all worth the extra effort to have an employee.

[snbauser]

THIS ****S !!!! How on earth does anyone afford an employee in daycare then? I am really concerned about not making enough income to make it all worth the extra effort to have an employee.

I will tell you that I don't make much more money with 12 kids and my assistants than I do with 5 kids by myself. I still do it because I enjoy the larger group.

[daycare]

I will tell you that I don't make much more money with 12 kids and my assistants than I do with 5 kids by myself. I still do it because I enjoy the larger group.

ditto--- I will have to have 12 kids at all times to have it worth it for me to expand, i don't do SA kids. Which is not easy from what I am figuring out. I will make me an additional $2000.00, but it's a LOT more work.
snbauser, do you have to have work comp in your state?

[snbauser]

snbauser, do you have to have work comp in your state?

Only if we have 3 or more employees.

[daycare]

Only if we have 3 or more employees.

this is why CA ****s.....people here are sue happy.... we have to have workers comp with the minimum of a one million dollar policy even if we have one employee....

[snbauser]

this is why CA ****s.....people here are sue happy.... we have to have workers comp with the minimum of a one million dollar policy even if we have one employee....

I do remember that from when I looked into expanding when I was in CA. And I know a fellow provider who didn't have it and got in big trouble. She had an employee who claimed to get hurt on the job - the provider eventually won the suit - but she still had to pay a very large fine for not having workers comp.

[daycare]

I do remember that from when I looked into expanding when I was in CA. And I know a fellow provider who didn't have it and got in big trouble. She had an employee who claimed to get hurt on the job - the provider eventually won the suit - but she still had to pay a very large fine for not having workers comp.

yeah this would be my fear and luck. I want to make sure to follow the rules to the T