Got A New Client, Wants A New Way To Pay, Need Help With Contract

[daycare]

So I landed a new kid who will take over one of my families while out on maternity leave. The child will be temp, so it all works out perfect.

So the dad's company will pay childcare pretax and the company will mail me the check direct. I will be paid every other week. So here is the thing. I have never delt with this before and I don't know how to apply all of my current policy late fees?

This is what DCM told me.
Need invoice 1 week before payment
payment takes 5 days to go out

I know that the dad cant controll when the check comes, once they leave the office, so how do I make sure that I still get paid on time?

I did tell the DCM that she and DCD would be the one responsible for all of the payments??Have any of you ever delt with this before? What would you write up? How would you handle this?

[MyAngels]

The families in my daycare (most of them) use this program through their work, but they pay me, then get the reimbursement from the company. I simply sign a form (the invoice) telling them what my rate is and the dates it covers, they take care of getting themselves reimbursed.

If they insist on the company reimbursing you directly, I would invoice in advance at least a week, with payment due the following week. Late fees would still apply, which gives the parent the motivation to keep on top of their company payroll office.

[daycare]

The families in my daycare (most of them) use this program through their work, but they pay me, then get the reimbursement from the company. I simply sign a form (the invoice) telling them what my rate is and the dates it covers, they take care of getting themselves reimbursed.

If they insist on the company reimbursing you directly, I would invoice in advance at least a week, with payment due the following week. Late fees would still apply, which gives the parent the motivation to keep on top of their company payroll office.

So so you think that I should change the contract to read that the payments will come from XYZ company, but that the parents will still be help responsible for all late fees?

My concern is that the company will say that I did not invoice them in time and blame me for not getting payment out ontime. I am invoicing the dad and the dad is turning it in to the company.

[morgan24]

I have taken pretax money before and the parents pay me and the company reimburse them. I just give them a receipt for services and fill out a form for them every 3 months. I have never heard of having to invoice the company for payment.

[MyAngels]

So so you think that I should change the contract to read that the payments will come from XYZ company, but that the parents will still be help responsible for all late fees?

My concern is that the company will say that I did not invoice them in time and blame me for not getting payment out ontime. I am invoicing the dad and the dad is turning it in to the company.

Yes, that is how I would do it. Your contract is with the parents, not the company. I doubt that the company would allow late charges to be taken out of the account anyway, so the parents will have incentive to stay on top of the payments to you, to avoid having to pay late fees out-of-pocket.

[daycare]

Yes I find it strange and not sure how to Handel it. I am sure im over reacting and thinking negative about it, but I think it's because I've never had to deal with it before

[mac60]

I have taken pretax money before and the parents pay me and the company reimburse them. I just give them a receipt for services and fill out a form for them every 3 months. I have never heard of having to invoice the company for payment.

This is exactly how I have done it in the past. Nothing changes for the provider, still paid regularly, the parents are the ones that should be paying, never heard of this doing it they way they want.

[daycare]

This is exactly how I have done it in the past. Nothing changes for the provider, still paid regularly, the parents are the ones that should be paying, never heard of this doing it they way they want.

me either again this is why I am asking here if anyone has ever done this before and if so how did they do it. I really don't have a good feeling about it...

[wdmmom]

2 of my parents utilize this service through their employer but both families pay me and collect the reimbursement from work.

I would tell the family that you need to receive payment from them. That way there is no discrepancy and you are guaranteed to be paid on time.

[daycare]

2 of my parents utilize this service through their employer but both families pay me and collect the reimbursement from work.

I would tell the family that you need to receive payment from them. That way there is no discrepancy and you are guaranteed to be paid on time.

I did ask if there was someway that they could do this and they said that their company will only do it this way to allow them to take advantage of the pretax.

ugh I don't know...

[momofboys]

me either again this is why I am asking here if anyone has ever done this before and if so how did they do it. I really don't have a good feeling about it...

It's actually pretty common & the same thing as doing a flexible spending account for medical bills. I have never had a client pay that way but several years ago when I was working outside of the home we employed a PT caregiver & we did an FSA so we could get the tax benefit. Only we stil paid the provider & then the FSA reimbursed us what we paid. My guess is the payroll would be on top of it though. I would make the parent responsible if you are paid late though.

[daycare]

It's actually pretty common & the same thing as doing a flexible spending account for medical bills. I have never had a client pay that way but several years ago when I was working outside of the home we employed a PT caregiver & we did an FSA so we could get the tax benefit. Only we stil paid the provider & then the FSA reimbursed us what we paid. My guess is the payroll would be on top of it though. I would make the parent responsible if you are paid late though.

I started thinking that maybe I should bill them one month in advance this way I dont have to invoice every other week and i wont be so worried about being paid late. Do you think this would work?

[morgan24]

Would dcd let you talk to his companies HR dept? I would want to be sure how it works before I started to make sure that payments were going to be made on time.

[SilverSabre25]

I think I would call the company's HR and talk to them to make sure of how it works, from their perspective, first.

[sharlan]

I've had two clients do this. Both paid me and were reimbursed by their employers when they turned in the paper work.

The only 3rd party payee that I accepted was the state. There, I turned in the paperwork after the client signed it.