?'s About Group Family Daycare

[DaycareMama]

I have a couple questions about Group Family Daycares and/or having assistants.

How do you base paying an assistant? Hourly or flat wk pay?
Or do you pay a percentage per child?
What if your numbers drop for a while and you cant pay the same set pay?

I am really thinking about going group but I just can't figure out how to pay someone else so thats its fair to both of us. :confused:

Also what if you hire someone with a small child. Do you allow the child to attend you daycare and deduct it from her pay? Or do you just give them a spot?

Finally same question about a sub for the day. How do you determine her pay?

[Blackcat31]

Where I live the going rate for substitutes is $10 per hour cash. I also have had to hire an aide or helper before and depending on their age I pay them anywhere from a flat rate of $20 for a half day $40 for a full day down to just $3 per hour if I only need them to be present and do not expect them to really do anything except be an extra hand.
For example, I had a 13 year old helper this summer so I could have 4 school agers. the SA kids can pretty much occupy themselves and I can handle the other 10 kids because they are here all year so I paid this little girl to basically just be here. She grabbed a diaper or wiped a nose here and there but for the most part she was just here so I was within my licensing capacities. I am group care also. I paid her $50 per week cash. In my case mom absolutely did not want her earning anymore, because she thought $50 a week was a lot for a 13 year old. Plus, I fed her lunch and it helped mom out becausemom didn't want her home alone but she was too old to go to daycare.
If you get a helper that has a young child you have to count them in your licensing counts. I have traded services for help, but this is HARD because the helpers kid never wants to listen and we all know how different kids behave when parents are present.....

[Crystal]

I pay substitutes, because my husband is my FT assistant. I pay subs $15 per hour. If I were to hire an assistant, I'd offer $15 per hour OR $10 per hour with a benefit of free child care.

I would not do a flat fee. When you are under capacity, then you would be able to allow her to leave early, or not come in for the day. If you pay flat rate, you would have to pay for time she is not there. Also, hourly would help when you are low in numbers due to enrollment.....you could put her "on-call" and would still pay the same hourly rate. Although if she did go on-call, I'd probably offer a little higher wage, simply because once you have a quality assistant, you need to provide incentive for her to continue working for you and being available to you when your numbers go back up.

Don't forget, once you hire someone, you are responsible for their taxes, AND you can claim their wages on YOUR taxes...if you pay "under the table" in cash, you won't be able to claim the expense when you file your business taxes.

[DaycareMama]

Thanks ladies. Your info really helps. Hourly does sound best.

[Blackcat31]

Don't forget, once you hire someone, you are responsible for their taxes, AND you can claim their wages on YOUR taxes...if you pay "under the table" in cash, you won't be able to claim the expense when you file your business taxes.

That is not true, I pay cash and I do claim it on my taxes as an expense. I do, however, give them a 1099 form at the end of the year with the total amount paid out to them on it and when they are hired they sign a form that says they are being hired as an 'independant contractor' and responsible for their own taxes. So nothing I pay out is "under the table".

My husband occassionally works for a local contractor in town and any money they pay him, he receives a 1099 form for and he is responsible for paying taxes on that amount.

Maybe Tom will chime in on this one.....

[Crystal]

That is not true, I pay cash and I do claim it on my taxes as an expense. I do, however, give them a 1099 form at the end of the year with the total amount paid out to them on it and when they are hired they sign a form that says they are being hired as an 'independant contractor' and responsible for their own taxes. So nothing I pay out is "under the table".

My husband occassionally works for a local contractor in town and any money they pay him, he receives a 1099 form for and he is responsible for paying taxes on that amount.

Maybe Tom will chime in on this one.....

hmmm.........so, you hire them as independent contractors? I've never heard of being able to do that. I'm going to have to check it out, it would make life so much easier. I get a 1099 myself, because I do alot of outside work, but I never even considered doing that with assistants.

I do hope Tom will give us details.

[momofsix]

Hopefully Tom will pipe in, but I believe I learned that claiming a day care assistant as an independent contractor is pretty hard to legitimize. As an independent, they would be able to work there own hours, they would not be under your "control" , they would bring in their own equipment, they might even have a "business" of their own. So someone coming in to do something like a computer class for the kids, or a gymnastics class would be able to be independent, but I don't THINK an assistant is. I hope I'm wrong, because I would love to pay one that way!

[Crystal]

Hopefully Tom will pipe in, but I believe I learned that claiming a day care assistant as an independent contractor is pretty hard to legitimize. As an independent, they would be able to work there own hours, they would not be under your "control" , they would bring in their own equipment, they might even have a "business" of their own. So someone coming in to do something like a computer class for the kids, or a gymnastics class would be able to be independent, but I don't THINK an assistant is. I hope I'm wrong, because I would love to pay one that way!

That's what I thought....hope I am wrong too!

[kpa0627]

I daycare assistant can NOT be treated as an independent contractor when it comes to taxes. You can probably get away with it but if they chose to audit you..... you'd get into trouble on that one.

[misol]

Hopefully Tom will pipe in, but I believe I learned that claiming a day care assistant as an independent contractor is pretty hard to legitimize. As an independent, they would be able to work there own hours, they would not be under your "control" , they would bring in their own equipment, they might even have a "business" of their own. So someone coming in to do something like a computer class for the kids, or a gymnastics class would be able to be independent, but I don't THINK an assistant is. I hope I'm wrong, because I would love to pay one that way!

I daycare assistant can NOT be treated as an independent contractor when it comes to taxes. You can probably get away with it but if they chose to audit you..... you'd get into trouble on that one.

If I remember correctly, you guys are right.

[Abigail]

We are paid just above minimum wage and hourly. We receive a check every two weeks and taxes are already taken out. If your numbers drop, you can explain at the time of hiring that their position is based on enrollment and changes in enrollment may determine their status of employment with you. That's my opinion. We're also only required to be CPR and First Aid certified and have some previous child care experience.

We also have a child care worker who has a toddler enrolled. Their child fills one of the slots, so they are charged a slightly discounted rate (20% discount or so). This gets paid by the child care worker, but I think they have the option to have it automatically deducted from their paycheck. Do not just give the child care worker's child a spot because they need to be enrolled in your child care just like all the other children.

[Blackcat31]

WOW! There is a lot of conflicting info here...In my case, the gal I had hired as a substitute was just that. A substitute for a lot of daycares in town. She had business cards and placed ads in the paper promoting herself as a service that provides daycare substitution. A lot of daycares in our town use her. I would think maybe because she has her own "business" ? I don't know...the only other time I've had to use an assistant or helper was a family member (my own teen daughter) and occassionally in the summer I have hired a 13 year old girl and she has never been paid more than $250 for the whole summer.
So I wonder if we are suppose to be treating people who are say, 19 years old and babysit for someone as employees? I know a gal who has babysit for this one family enough that she has earned a hefty sum over the last year (More than $600). Would that family have to treat her as an employee? There are so many different rules and gray areas that I am totally confused.... I called a couple tax preparers in town and asked some general questions and wouldn't ya know, they have all answered differently?!?! :confused: So where is Tom?..... LOL! I am thinking of hiring someone on a regular basis and I want to make sure I do this right.