Opening a Dayhome
Are you considering opening your own dayhome? How and where do you start?
Here are a few things you need to consider.
How do you get started?
It's a good idea to look at these first. You should personalize each of these forms to suit your dayhome needs. It's important for you to have an Agreement personalized to your dayhome. Make sure you and the parents agree on all the elements and sign and date it. The Sample Program Plan is an excellent resource for this. PS: You may need Office 2007 to open some of these files.
What should you charge?
As a rule of thumb, you should always go with the industry standard. The industry standard in dayhomes is usually what other dayhomes are charging in your neighbourhood. You do not want to be too cheap and you certainly do not want to be too expensive. However, if you have outstanding certifications (such as Early Childhood Education, Psychology/Nursing training, you may want to consider charging more).
We have the results posted on July's question: How much are you willing to pay for childcare? Click here to view. The results may surprise you.
Should you sign up with an Dayhome Agency or do this on your own?
This is a personal preference. Being part of a Dayhome Agency offers a community you could get support from and be part of. Dayhome Agencies help dayhome operators with advertising/marketing. Agencies are a great way for newcomers to get to know the business. However, Agencies have monthly fees/contracts. You will need to speak to a specific Agency about their fees/contracts. If you feel you can do this on your own, you can still do that. There are a lot of people starting dayhomes that have not signed up with an agency.
Should you get a Criminal Record Check done?
Yes. Parents may request to see your criminal record. If you sign with an Agency, they will do this for you. If you open a dayhome on your own, you can visit this link to order one. Or, you can visit your local RCMP or police service office. This service costs about $25-$55.
How many children can you take in your dayhome?
The rule is you can only have 3 children under 3 years of age. You can only have 6 children in total (to each adult). These number include your own children.
What if you want to let a child go from your dayhome?
Make sure you add a clause in your Agreement where you can let the child go within 2 weeks from the start date. You never know if each child (or parent) is a suitable fit in your dayhome. You need a quick way out if the new child is being disruptive. The standard clause in a dayhome agreement is to give the parent (and the parent, in turn) 30 days' written notice of termination once this 2 week trial is done.
Should you give out receipts/invoices?
YES! Always give your parents receipts. Make sure your name and address are on it along with the parent's name and address. And do not forget the child's name and date the receipt/invoice covers. Always make 2 copies; 1 for you and 1 for the parent. You can get receipt books at dollar stores now.
What receipts (expenses) should you keep?
Any receipts related to running your dayhome are what you should keep. If you buy toys, linens, bedding, clothes, art supplies, etc. specifically for the dayhome, save them. If you have a family and use groceries for both your dayhome and your family, keep all the receipts anyway. A tax consultant will figure out the percentages at tax time. Make sure you keep all utility, phone, internet, natural gas and television bills. These things are used during your dayhome operating hours. If you take your dayhome children to a park/attraction that requires admission, save those receipts. If you transport your dayhome children, save your vehicle mileage and gasoline receipts. Some vehicle repairs may be covered at tax time; you may want to save all those too.
What do you need to bring with you at tax time?
It's a good rule to measure the area (in square feet) you will be using for your dayhome activities. Save that measurement. Give that measurement to your tax consultant. Bring all your receipts and above bills. Not all receipts and bills are covered 100%. Talk to your tax consultant about that. And make sure to bring the copies of the receipts you gave the parents (proving your income).
What if your parents want to apply for the provincial subsidy program?
Dayhome operators cannot provide this service directly. Agencies can; if you sign up with a Dayhome Agency, the parents can apply through them. The provincial government will help low-income parents.
How do you plan?
Make sure you have these at your front door. Parents love to see what you're giving their child to eat (it also helps them plan dinner). The timesheet is useful to keep track of each child as they enter and exit your home. This is extremely helpful should you charge for overtime. Post your hours! Parents are responsible to pick up their children on time. If they are late (after your posted hours), charge them. As an aside, most dayhome operators make this Overtime Charge as unreasonable as they can; this ensures the parent picks up their child on time (ie: $10 for each 15 minutes or more). Use the blank calendar to plan out events and outings. Display or give copies to the parents so they know what to pack each day (ie: bathing suits, extra mittens, etc).
Do you need First Aid/CPR?
It is such an important aspect of this industry to have First Aid training. Without it, parents do not take you as a serious caregiver. St. John Ambulance has excellent programs designed specifically for childcare. They have 1 and 2 day courses. Childcare Calgary strongly believes in First Aid training and will give you FREE ADVERTISING for 3 months as a token of our appreciation. Also, in this document, there are some excellent First Aid kits for your dayhome and when you go out. Prices may change as St. John Ambulance prices change.
**** If you take a First Aid in Childcare course (until Dec 2010), Childcare Calgary will post your dayhome advertisement for 3 months for free! (email lisa@childcarecalgary.info with your course ID and date you took the course.)****
Should you get Commercial/Dayhome Insurance?
This is not a necessity. However, for $45-70/month, it can be worth it. What if something happened on your property like a slip and fall? What if the parent wanted to sue you? These types of liabilities will not be covered under your personal insurance. You can only list so much in your original agreement. And you don't know if your relationship with the parent will dissolve. It's always best to be covered. Speak to your insurance provider. They will ask you to fill out and fax your dayhome particulars to them. Some insurance providers now have specific Dayhome Insurance. Combine it with your Auto and Home Insurance and save a bit of money.
What if there is an injury or fall at your dayhome?
It's best to write everything down. Call the parent and let them know. Call 911 if you have to. Proceed as you would normally with an injury. As a dayhome operator, you need to fill out an Incident Report. It's best if you and the parent signs it and each have a copy. Fill out as much detail as you can. If the parent takes this to the point where you need your insurance professional, you need this form to send to them. Dayhome insurance is so important in these cases. It's best to be covered at all times.
Is all this record keeping necessary?
Yes! Keep records on everything and keep these records in a safe, dry, waterproof place. Not only will you need these records for tax time, but you need to keep them all for 7 years. You never know when you will be audited.
Should you register your dayhome business?
This is not necessary until or if you plan your income to exceed $30,000/year. It's certainly possible to earn that much in a dayhome setting. Contact the Canadian Revenue Agency. You can (for free) set your dayhome up as a sole proprietorship.
Should you charge GST?
This is not necessary, yet. If you set up your dayhome business as a sole proprietorship (see above), you will get a business number and GST number. You then can put away the GST you collect and use that at tax time.
Important Phone Numbers
Bullying Help Line 1-888-456-2323
Child Abuse Hotline 1-800-387-KIDS (5437)
Child Disability Resource Link 1-866-346-4661
Family Violence Info Line 310-1818 (toll-free, 24/7)
Kids Help Phone 1-800-668-6868
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