consequences of not having an EIN number

[allsmiles]

Do most of you have an EIN number? i just started family home child care and it all happened so fast.. i used my ssn for the food program and state assistance program. BUT now im thinking about when parents ask for proof of payment for tax time.. How do you without EIN numbers handle that? Can i just get one now for that purpose and still use my ssn for the other programs?

[MarinaVanessa]

Yes you can still use your SSN for some things and your EIN for others because your EIN is attached/connected to your SSN.

Provider's that get their EIN's usually get theirs because they don't want to give out their SSN to clients, that's why I have one but I still use my SSN for eveything else.

[allsmiles]

Yes you can still use your SSN for some things and your EIN for others because your EIN is attached/connected to your SSN.

Provider's that get their EIN's usually get theirs because they don't want to give out their SSN to clients, that's why I have one but I still use my SSN for eveything else.

thanks for your reply.. and so at the beginning of the year.. is that your normal practice to give the parents a statement with your ein number and their payment amount for the previous year?? im just remembering what i used to get when i had my kids in daycare and after school care..

[MarinaVanessa]

Yes. Although it's not required to give out end of year statements to clients I still do as soon as I have the completed numbers. The only thing we are required to give them is a W-10 and even then only if they provide one to us BUT I always give my clients both without having to wait to be asked.

You can google W-10 if you don't have one and then fill it out for them. I always make two copies of the w-10 and write the total amount on both and have the parent sign both amounts (there isn't a spot on the w-10 for an amount but I always put it in anyway) so that they can't claim more on their taxes than they actually paid. It's just a precaution and just one way of doing it.

[allsmiles]

Yes. Although it's not required to give out end of year statements to clients I still do as soon as I have the completed numbers. The only thing we are required to give them is a W-10 and even then only if they provide one to us BUT I always give my clients both without having to wait to be asked.

You can google W-10 if you don't have one and then fill it out for them. I always make two copies of the w-10 and write the total amount on both and have the parent sign both amounts (there isn't a spot on the w-10 for an amount but I always put it in anyway) so that they can't claim more on their taxes than they actually paid. It's just a precaution and just one way of doing it.

oh wow.. i had no idea..thanks!!!

[MommieNana4]

I use the MMK program (paid subscriber/membership) and it has the IRS W-10 (Dependent Care Provider's Identification and Certification) form that you can print out with the client's total paid for the year. It automatically puts the amount paid...if you are using the accounting portion of the program.

There is a blank one on MMK also. Someone else may have additional information. I hope this helps.

[allsmiles]

I use the MMK program (paid subscriber/membership) and it has the IRS W-10 (Dependent Care Provider's Identification and Certification) form that you can print out with the client's total paid for the year. It automatically puts the amount paid...if you are using the accounting portion of the program.

There is a blank one on MMK also. Someone else may have additional information. I hope this helps.

cool.. i do use MMK, but its the one the food program sent me and i downloaded.. i do use the accounting part.. i need to see if it will do this for me THANKS A BUNCH

[jojosmommy]

Yes. Although it's not required to give out end of year statements to clients I still do as soon as I have the completed numbers. The only thing we are required to give them is a W-10 and even then only if they provide one to us BUT I always give my clients both without having to wait to be asked.

You can google W-10 if you don't have one and then fill it out for them. I always make two copies of the w-10 and write the total amount on both and have the parent sign both amounts (there isn't a spot on the w-10 for an amount but I always put it in anyway) so that they can't claim more on their taxes than they actually paid. It's just a precaution and just one way of doing it.

This!!!!! I got an EIN, thats all I want to share with the families. I give them their w-10s and make them sign a copy so I have proof of the total. This way if I get audited I have their signature stating the total amount they were allowed to claim on my behalf.

Sounds strange but I have had it come back and having the signed paper is essential. If a family gets divorced and both parents claim daycare expenses and use your EIN number you will definately get a call from the IRS questioning your amounts. If only to serve as a record so the ITS can go to them and straighten out the issues they filed on their taxes.