Vacations and EI

[Littledragon]

Hi there,

I have a question about vacation. Is it resonable to get your clients to pay for your vacation? If your client takes your child out of daycare for their vacation, do you still require them to pay? What about sick days, for you or the client?

Also, I'm looking to contribue to EI so I can get Mat leave in the future...does anyone know how to do this? I'm in Ontario...

Thanks everyone!

[Emily3]

Hi!

My parents pay half fee for when they take their kids out of care for vacation. I am paid for all stat holidays as well as occasional sick/ personal days. If I close the daycare then the parents do not have to pay.

As for EI, the cra website explains how to do it. I have heard from quite a few people that it is quite expensive and possibly not worth it for those of us who don't make that much to start with. I have not properly looked into it though.

[jazmic]

Hi there,

It's really up to you. I know a lot of providers have their clients pay for their (the providers') vacation. For me, I charge them for days when I'm open and they choose not to bring their child for whatever reason, be it vacation or illness. And when I have to close for my vacation or my sick days, I don't charge them. I do however charge them for statutory holidays, though, when I'm closed. Like I said, it's really up to what you feel comfortable with.

[Crayola kiddies]

I charge for all stats, and holidays .... I don't charge for my sick or personal days

[sunnydays]

I charge them for stats, 5 personal days, as well as two weeks of my vacation...plus they pay when they take the child out of care for any reason, vacation, sickness etc. This means I never go without pay unless I decide to take more than 2 weeks of vacation. I consulted with a lot of providers in my neighbourhood and many of them did this, so I did the same. It is up to you...you are your own boss...but also you may need to find out what is the norm in your area and work from there.

[fruitloop]

I charge families for their holidays unless it is an extended absence of more than 3 weeks (teachers over the summer for example), they pay for all Stat/civic holidays and I've added a couple others in there like Easter Monday, Christmas Eve and New Year's Eve as paid days too but closed. They pay for all their children's sick days and I have allotted myself 10 paid sick/personal/bereavement days.

As for EI...I pay into it. Your accountant will be able to figure out what the amount you owe for the year is based on your income.

[Inspired by Reggio]

With vacation policies ... my clients pay for the space committed to regardless of its 'use'. I am paid for all stat holidays and than have two options with my 'fees' option A where you pay basic fee and do not pay me for my vacations or personal days and option B where you pay a lower fee but I get paid for 10 vacation days and 10 personal/emergency days ... if I were to take 'more' than that then they would be unpaid.

With EI ... I would definitely investigate the COST of it and your business plan analysis ... my understanding is that once you opt IN to it as a self employed person if you USE it you are then required to pay into it for the rest of your self employed business life.

So if you are going to return to the out of home situation in a couple years it might be 'worth it' to pay in to get your mat leave covered .... because once you quit and become employeed y ou will continue to pay into it through your wages.

However if you are planning to remain self employed long term cost analysis wise it might be way cheaper to put the 'payments' aside and save up for your own mat leave ... cause with EI premiums your payment while on mat leave will be 50% of the NET you claim as income not your GROSS ... so a pittance compared to the amount you will be paying into it .... it would be much cheaper to SAVE up the 50% of your net for a year ahead of time OR instead of taking a mat leave hiring someone to come in and 'work' in your stead so your clients remain and you can still have all the tax benefits of using your home as business and so forth but you can have 'time' with your babe as needed?

Personally - I am not going to be having any more 'babes' so mat leave is not an issue but the EI for 'sick leave' did appeal to me until I looked into it ... it was cheaper for me to pay into a 'short and long term disability' plan through a private insurance company OR to take the premiums I would have been paying to EI and put them into an RSVP - if I get sick I can withdraw and if I am blessed to remain healthy I am saving for my retirement ... with the EI or insurance if you do not 'use it' you loose it so to speak...I prefer to invest in my own family than lining the pockets of big business in the insurance industry!

[mom-in-alberta]

My contract states; I get all stats and a couple other holidays (Christmas Eve, Boxing Day and Easter Monday, etc- all listed in my handbook), 10 vacation days (which equals 2 weeks with weekends) and 4 personal days. All paid, within the calendar year. If I take any more, I prorate the monthly fees, by the day.
I also think it's probably better to put away the money into a personal savings/investment. If you plan to withdraw it though, I would recommend a Tax Free Savings Account. You can set one up at pretty much any financial institution, in almost any kind of investment. Any withdrawals are tax free (principal and growth) as opposed to an RRSP, in which the institution is required to charge a minimum 10% (up to 30%, depending upon the amount) "withholding charge". You get a non-refundable tax credit at tax time, but you never see that money in your pocket, so it's not usually preferable. You will also get taxed on the entire amount of the withdrawal as income, even the amount withheld.

[Inspired by Reggio]

Oh good point on the Tax Free high interest savings account ... we have one of those as well - do not want all our eggs in one basket so to speak!