A relative wants me to provide child care to her 9 mth old.
I'm not sure how much to charge and her being related makes this harder to decide.

Can you all give some advice or info.

The hrs will be from 7:30 am till about 3 or 5 pm

Mon -Fri and maybe Sat.

What specifics do i need to tell her up front.

I know already that i'm not working on holidays ,but anything else need to be specified up front besides cost.Also how much to charge her???
We're in VA. She is a single mom and i don't want to pressure her but don't want to do it for next to nothing either.
I am a mom of 4 and currently not working at all.So this will be the only child care child for me.

Please post asap,shes coming tomorrow to set up a schedule etc.
Also her hrs may vary ,how do i decide if to charge by hr or week..PLEASE HELP!

I would charge a flat fee of $40/day for 8 hours.

Rebecca

I would not do it unless you do have children of your own that are close to or the same age??? I'd also want to ask her when/if the child will go to another daycare or if this is a 'forever' kind of thing??? because it really can turn into forever.

That said, I did watch a friend's baby for a year.

As far as what I charged, I called around to daycare centers in the area and went $2 less... I made $20 a day, 4 days a week from 7:30 am to 5:00 pm. We then added $2 a day when the baby started eating food and I provided her food and milk.

As she got older, she needed socializing with someone besides me (and her parents) -- it was quite evident when she was around other children!!! She was an only child and was really needing some friends... so I told the mother and she found another home in which there were 2 more little kids of her age. Her mom thanks me to this day for encouraging this. It was VERY hard for the mom when I 'quit' but it has been really good for all of us and it needed to be done...

Now I keep her once in awhile in the evenings and we have a great time together. She's my little buddy.

Hopefully, that helped a little bit. It is a big decision so I hope that you are able to make one that will work well for you and for your family.

I'm thinking$40 a day might be too much for her.I was thinking along the line of $25 per day.But seeing shes family the $20 sounds reasonable.But there will be 2 days that might be less hrs.I'm thinking do $20 per day with hrs 7-5 whether its less hrs .Because $2 per hr is already cheap.
What did you do when you had appointments etc.I do have 4 kids 13,11,8 and 2 of my own.Did you take the child with you or should i tell her to have a backup plan when you need time off?

Oh good, you have your own baby! That sounds great for both of the babies... Mine were already into 2nd and 5th grade when I did the babysitting.

It varied as far as other appointments and so on went. I always let the baby's mom know if I had something that day and usually, she would take her lunch hour around the same time and watch the baby or if it was an after school activity (like track meets, etc.), she'd get off work early. If she couldn't get time off or work it around her schedule, then I'd just take the baby with me...

She gave us a car seat that I kept in the car all the time (she had another in her own car).

She also provided one of those portable cribs that I could use for the baby during naptime and so on. It stayed set up in the least active room of the house and then they would borrow it if they were going out of town for the weekend or whatever...

Ok so i may stick with $100 per week from 7 am -5 pm daily.
No holidays ,i suppose that means i take off $20 per holiday.
If i do Sat i will do it at $25
I know next year we're planning a mth long trip so i'll let her know my dates way in advance so she can make arrangements.

Is there anything else i need to specify up front?

I think that you are undervaluing yourself, but if it is more of a charity/favor type thing, I can understand.

I am really trying to go easy on her.If it was a stranger i would do $130-$150 per week.

Did you check a few daycare centers around where you live? I'd really base it on your area since this can really vary from place to place. They should be open today too -- at least with a skeleton crew.

I did it to where it was $10 for less than 4 hours and $20 for more than 4 hours... that was based on how our local daycare centers (the ones in the yellow pages) do their rates.

I just think that it is easier to start *high* (near your local rate) and then go down later if you want to. Also, I initially did mine as more of a charity/favor but it really did end up being more work than I could have imagined. So be sure to not underrate yourself. I think that I should have really asked for more than $20.

Thats the thing,i think i need to ask for more,but being family is really holding me back.
I don't have alot of time to research since shes coming tomorrow to set up time and cost etc.
The baby will most likely start Monday.She got the job yesterday and started today.

You might want to go over who provides what - equipment, food, snacks, diapers, wipes, sheets, bibs, etc. - just to be sure you're on the same page. For just $100 a week, I'm guessing that she needs to provide everythign, but just be sure.

Review your expectations as far as sick baby care - like if you'd expect the baby to be picked up if he/she threw up or had diarrhea....if you'd take the child with runny nose and/or low-grade fever. I always wanted to be home with them when they were ill and my job afforded me that flexibility, but hers may not

It's also a good idea to talk upfront about what to do if Mom runs late. You don't want to get in a position of routinely having a late Mom, so it's best to talk about it up front and set a late fee.

It can be a good idea to go over things like discipline techniques, again to make sure that you're on the same page.

My sitter took my son to appts when necessary, but always let me know when/where they'd be going.

cj/

Oh, one more thing...since she's a single mom, check that there aren't any "issues" with the father and/or if he's able to pick up the child.....or if there are any other people who are authorized to pick up the child.

cj/

Look in the yellow pages under Daycare... Call a few. You will quickly see that they all charge the same amount!!! It shouldn't take more than 15 or 20 minutes and would be well worth it.

CJ makes some very good points... There is a lot to think of and the more that is laid out on the table, the better.

Good communication really will really be key in order for things to run smoothly.

And ummm... you'll want to check into how the monies will be handled....cash or check...if you know what I mean. Home arrangements typically run cheaper than a center for one reason or another.

Thanks for those suggested topics to make sure of!!
Also i called a few numbers got through to 2 and one person said $20 a day regardless of less hrs and thats from 7am-6 pm

Another said $130 a week for 7 am to 5 pm.

So i guess i'm not that far off with the $100 per week.

Do you think i should ask her how much she can pay....in hopes of it being closer to $125 (what i really want) and not go lower than $100??
Or state $100 upfront.
About it being at home...i think the $100-$125 might be the going rate.

The centers are usually higher but i'm not getting any answers to my calls there today being Sat.

If things go badly, it could affect more than just what your relative needs to do about childcare. Think this through carefully and decide how important the relationship is.

I thought about if it goes badly.I plan tomorrow on telling her that i will understand if she decides this is not working out for her whether shes just not happy with her here or if she finds anywhere cheaper etc.
I also plan on being upfront with any problems that may arise when we start on Monday.

hopefully keeping things out in the open will make it easier and no bad feelings will develop.

I hope it goes well.

You will be in my thoughts... do keep your options open though and protect YOU -- even if it means that you decide not to do this.

It really is a HUGE commitment and when it involves family, there are a lot of other dynamics that come into play.

one more thing to consider (didn't see it listed), if she is a single mom, odds are she will be taking the daycare you provide her as a childcare credit on her tax return. Her accountant would advise her to do so she gets some money back. This means you have to pay taxes on that money SO I would charge about 20% more than you are thinking of because taxes will eat that up. Plus, make sure you talk with your accountant about what you need to keep track of for taxes.

If it's just "babysitting" and she won't be taking the credit (but I can assure you it's worth her while to do so), you probably don't need to worry about it.

I agree that this is something you REALLY need to think about. If something goes bad with the situation, this could strain and/or end your relationship. What about

Also, what happens when you take vacation time and are gone? What happens if you are sick and can't care for the child? Make sure you figure those things out too

Good luck

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Proud to say I haven't shopped at a Wal-Mart since Sept 2003

LOL her and my tax person is the same .
I called him to ask and waiting for an answer since he wasn't available when i called.
So just 20% more should cover the difference ??

Ok...hes not sure.
He just does our taxes using software so he don't know all the specifics.
hes saying with us seeing we have 4 kids and claim them all it won't make a big difference with us paying taxes on the amount i get from babysitting.
He don't seem to think it would be much difference kinda like we would make it up with the 4 kids we claim.

PLEASE if anyone have experience with this part of it please post asap.

I think I'd ask her upfront if she's going to be looking for childcare credit on her tax return. Explain that if she says 'yes' then you need to be paid more.

This way, she's the one in charge of whether you get paid 20% more, or not.

One sticky thing happened frequently when I was watching a close friend's baby regularly last year. Whenever the friend cancelled (even at the last minute), I was not paid.

I don't think this was fair, and I wish I had discussed it prior to our agreement. In your case, I strongly feel that you should be paid whether she cancels for the day or not. It's going to be a full-time job for you, and I'm sure that when she takes a sick day at work, she still gets paid.

I did see that another poster suggested that you make sure you get clarification on who is purchasing the baby needs (wipes, diapers, formula, etc). Really stick to this! It can really start cutting into your income when you start providing all of those things. They sure add up!

Good luck!

all I know is that you would have to claim the daycare business on your taxes and self employment taxes is about 30% of your wages. Then you get to take deductions off your return for the business. My mom does taxes for a living and does a lot of daycares. You need to have a professional that specializes in daycares in order to get all the proper deductions. Your business return is separate from your personal return. What you get back with having 4 kids *could* balance out what you will owe in taxes but it might not. I know that I keep about 30% of the profit from my online business in an account specifically to pay taxes with. We usually end up getting money back on our personal side and then I owe on the business side. I just don't want to end up not having the $$$ to pay the IRS

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Proud to say I haven't shopped at a Wal-Mart since Sept 2003

I know its hard for some parents to hear ...but i plan on telling her about getting paid by the week not the day.So like you said if she don't bring the baby i still get paid.
I can also see this being thought of as UNFAIR to her and maybe others seeing that we are family and me not helping her out etc.
See this is where it gets sticky.
But i do want to help her out and make a little cash also since we're a one income family here too.
How do i explain to her about not bringing the child and still paying me?

Ok hubby is the only income here and we do joint taxes right now.
If i have this income coming in ,i have do file a separate return?Not on my regular taxes as usual as additional household income?

not necessarily a separate return but a separate portion of the return which is just for the business with business deductions that are separate from your personal ones. You will pay a different amount of taxes for the business versus your husbands income. Like I said, I'm not a professional but you simply can't say you made $7K for the year and not have a Profit and Loss statement (or whatever it's called) for your business. You are also more likely to be audited with a home business.

Now, if she's NOT going to claim you (and you have that in writing), you don't have to worry about it as long as you don't deposit any of the money you make into a bank account (because then you would have to explain it to the IRS if you get audited and then they would say you should have claimed it...big mess). Problem is, even if she says she won't claim you, she might at years end because she will get more money back if she does.

I would suggest talking to a tax professional....honestly

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Proud to say I haven't shopped at a Wal-Mart since Sept 2003

I would guess that you aren't going to end up owing much in taxes.

You will qualify as a home business, and as such, will get to deduct expenses related to your home (utilities,etc.) based on the hours it's used for his care, as well as the number of square feet of your home utilized in his care. You're looking at a bit over $5K/year, and I am guessing your deductions will really come close to canceling out your profit on your tax forms.

I doubt it will make a difference for her whether or not she pays you under the table or legitimately. It's obviously wrong and illegal to do it under the table... but my point is, she is likely low income herself and probably is likely to fall into an income bracket where she doesn't pay taxes, anyway.

Regarding telling her about being paid weekly... is she paid hourly or will she be salaried? Is she paid for vacations? If so, why should you expect any less? Just as she needs to count on her hours and the income that will provide, because she will likely base her purchasing decisions on the money she expects to bring in weekly, you, too, need that same assurance. You will have obligated yourself to staying at home, you'll have turned down other opportunities, etc., and will have made purchasing plans based upon needing to be there during babysitting hours and the fact that you'll be compensated for them. If she ends up not using you every day, it doesn't change the fact that you arranged your life around his 5 day presence, and so it is right that you be compensated on a reliable basis.

I pay my mom $30/day to watch my 21month old son. Three days in my home and two days in her home. I teach so she knows my schedule up front. If I cancel due to sick child or sick me, I still pay her for being "on call". I provide supplies. She has milk at her house that she supplies when he is there. Good luck! We do not claim the child care tax credit.

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Shelley
blue5203@aol.com

~Mom to Andy-11/3/05 and Ryan-7/31/08~

The 'credit' she would get for her childcare on her taxes is only if she has truly taxable income (after filing status is deducted and expemptions) chances are if she is just staring out now.. she will wash even for this year. Plus she only gets about 20% credit for it at the max.. so really she isn't talking about much money.. say she is making $10 an hour working 40 hours a week for the next 20 weeks.. she will only clear 8K.. with deductions of Head of house (7300) she is already going into the 'getting everything she paid in for taxes' part so listing childcare will give her no benefit, tax wise.. she literally would have to make over 13, 900 BEFORE childcare could even be counted.. that is assuming it is only her and the baby.. add another child or spouse and we are talking mucho bucks...

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Feel free to pm me or send me an email

For what it's worth, I paid my daycare provider a salary. I understood that she needed to count on this income 52 weeks a year. She had one week vacation of her choice (that we tried to coordinate) and also got paid for any additional vacation that we took as well as when my son(s) stayed home sick. She was sick a couple of times over the years, but nothing memorable. This is truly a situation where both respect and trust are essential and so "treat others as you'd like to be treated" is very important.


cj/

I agree w/ the poster who said that this could be a "for now" thing and turn into a "forever" thing so you should definately ask that.

It's a slippery slope dealing w/ relatives and child care. I did it for several years for my own sister. My mom used to watch my 3 y/o nephew, and when my sis got pregnant and mom knew that there would be two, and my dad got ill, she decided that she couldn't do it. I, at the time, could not afford pre-K for my DS who was 5 at the time..so I took this opportunity to watch my nephew and make the money this way to send him to pre-K. It went on for 5 years. It was very hard as sis was going through a divorce, and because I was her "sister" felt it was ok, to not pay me on time, the $150.00 weekly fee that we decided on. and I was needing it, and I was basically feeding her kids as well as my own family, she would "occassionally" buy certain juices and of course the baby food and diapers that the kids needed, but in the summer months, and we went to the beach I ended up shelling out "Ice Cream Man" money and stuff that way. Certainly can't tell her kids no, when I'm letting my kids have stuff. It especially hurt me when I saw her kids come in with new clothes and toys, and I knew she was WAY behind in paying me. And she shopped good stores too, Gap, Gymboriee...sometimes it got desperate and I would have to ask and it was demeaning to me. And of course, she got home just as dinner was being made, and going through divorce and not wanting to go home alone...she pretty much always stayed for dinner, not leaving until 6 or 7 at night. It got to be chaos at my house, and DH hated it.

I eventually wised up and prepared dinners during the day or in advance so I could quick heat it up when she left, and then there wouldn't be anything "out" and cooking when she came to collect the kids.

Just be careful to set up the bounderies and rules....I ended up w/ alot of animosity towards my own sister becasue of it, (resolved now, as I have not watched them in years, I moved out of the area)

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Eileen

**Some people are like Slinky's, not really good for anything, but you can't help laugh when you see one tumble down the stairs**

UPDATE:

OK...heres what happened.

When she showed up yesterday ,i started off by telling her how important it is for us both to be honest and upfront with everything.I told her i wanted to help her out but at the same time be fair to myself.I told her i'm sure she felt the same way.She said she did.
She said and another family member also told me ,she's making $10 an hour to start,so she offered me $100 for the week with 40 hrs per week.
She said she knew that it wasn't much but thats all she can afford right now until she can do better.
I agreed to that.Shes really trying to do it all on her own.She lives with her mom and besides household expenses she has all the other bills like credit cards,cell ,baby stuff and her own expenses.So although i really wanted about $125 i agreed to the $100 as a way of helping her out.
We agreed about the weekly payments ,if she keeps the baby home i still get paid my full amount,i told her the 6 holidays she off i won't take any payment for those days,i want to give her a little break too.
I told her 10 hrs a day and thats it,if shes doing OT its gonna be extra.Shes not claiming child care so i don't have to worry about the tax issue.
We talked about my sick days and her backup plan,my vacation time and we agreed on everything so far.
I honestly think i should get paid more ,but at the same time i can't get what she don't have lol.
And she is family!

So there it is ,baby is here now and asleep,shes a really peaceful baby.



I have to say thanks to everyone for suggestions,advice and info!!!
You all thought of things that i really didn't think of bringing up with her,and i feel good its all in the open and agreed on.

Thank again!!!

Sounds like it worked out really well - congrats! Hopefully this will be a win-win situation.

cj/

I hope so,i know it will be alot of work,but i'm glad to have a playmate for my 2 year old too.
I also told her in 1 mth i'll let her know if i would continue doing it or not.I figure in a mth i'll really get an idea how it will be.
Plus that leaves me with a chance of getting out if i find thats its too much for $100.