Daycare Provider Wants to Charge $20/week for Receipt

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schutzk21
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Daycare Provider Wants to Charge $20/week for Receipt

Post by schutzk21 » Tue Jan 14, 2020 4:44 pm

Hi All,

I am using a daycare provider this year for the first time and I am taking out the full $5K from my paycheck through my employer pre-tax via the dependent care flex plan.

I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week. Has anyone run into this issue with their daycare? I am waiting to hear back from her via email in regards to me filling out a reimbursement form and for her to sign it, so it takes less time instead of her having to write out a receipt. Does anyone have any suggestions on how to get this settled without having to pay so much money?

Can I simply write out a receipt myself and send it in? I don't want to do that since it isn't coming directly from the daycare.

oldfatguy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by oldfatguy » Tue Jan 14, 2020 4:47 pm

How did you make payment?

It is completely absurd that she wants to charge you anything for a receipt. Moving forward, perhaps you can suggest that she send you a bill each month if she wants to get paid.
Last edited by oldfatguy on Tue Jan 14, 2020 4:49 pm, edited 1 time in total.

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RickBoglehead
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by RickBoglehead » Tue Jan 14, 2020 4:49 pm

Sounds like the daycare provider is doing the math on how much documenting her income is going to cost her in taxes...

Is she licensed?
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cheese_breath
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by cheese_breath » Tue Jan 14, 2020 4:49 pm

schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
... Can I simply write out a receipt myself and send it in? ...
You're kidding, right?
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ponyboy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by ponyboy » Tue Jan 14, 2020 4:50 pm

Are you paying it all in one lump sum? If so, I guess you can pay the $20 to get a receipt showing $5k.

I never heard of anyone charging for a receipt. My guess is...a lot of people use the FSA or HSA, whatever you can use, so they know people will need receipts for proof. Thats really shady imo...but I guess they can do whatever they want. Those are some expensive receipts on a piece of paper and ink that cost less than 1 cent.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by ponyboy » Tue Jan 14, 2020 4:51 pm

RickBoglehead wrote:
Tue Jan 14, 2020 4:49 pm
Sounds like the daycare provider is doing the math on how much documenting her income is going to cost her in taxes...

Is she licensed?
Never thought of that...interesting.

123
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by 123 » Tue Jan 14, 2020 4:51 pm

How about paying by check and including a remark like the following in the memo "Childcare for Boy/Girl schutzk21 for January 2020 at Mrs Jones Childcare, 123 Main St, Anytown NY"
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oldfatguy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by oldfatguy » Tue Jan 14, 2020 4:52 pm

Also ... do you have a SSN or EIN for her/her business? You are going to need that for Form 2441.

Housedoc
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Housedoc » Tue Jan 14, 2020 4:54 pm

This would be a red flag to me. Maybe more issues much worse than receipt issue. Never have heard such a thing. Maybe an email receipt so they can save paper!!!!!!

ponyboy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by ponyboy » Tue Jan 14, 2020 4:55 pm

Housedoc wrote:
Tue Jan 14, 2020 4:54 pm
This would be a red flag to me. Maybe more issues much worse than receipt issue. Never have heard such a thing. Maybe an email receipt so they can save paper!!!!!!
This. This cant be a legit daycare. No one would charge $20 per week for a receipt. Something fishy is going on. From that alone, I wouldnt trust them with my child. Not to mention, there isnt much you can do. You do not want to anger this person at all or they may take it out on your child. Sad situation.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by MichCPA » Tue Jan 14, 2020 4:56 pm

123 wrote:
Tue Jan 14, 2020 4:51 pm
How about paying by check and including a remark like the following in the memo "Childcare for Boy/Girl schutzk21 for January 2020 at Mrs Jones Childcare, 123 Main St, Anytown NY"
That is probably not good enough for the FSA administrator.

From a quick Google search
Information necessary to file a dependent care claim includes:
• the dependent care provider’s name and address
• provider signature
• service start and end dates
• dependent name and relationship to employee
• description of service
• amount requested
Please remember that credit card receipts, non-itemized cash register receipts and cancelled checks are not acceptable forms of documentation.

https://www.connectyourcare.com/tools/f ... -fsa-faqs/

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by stoptothink » Tue Jan 14, 2020 5:02 pm

ponyboy wrote:
Tue Jan 14, 2020 4:55 pm
Housedoc wrote:
Tue Jan 14, 2020 4:54 pm
This would be a red flag to me. Maybe more issues much worse than receipt issue. Never have heard such a thing. Maybe an email receipt so they can save paper!!!!!!
This. This cant be a legit daycare. No one would charge $20 per week for a receipt. Something fishy is going on. From that alone, I wouldnt trust them with my child. Not to mention, there isnt much you can do. You do not want to anger this person at all or they may take it out on your child. Sad situation.
We went through a similar situation a few years ago which prompted us to pull our son out. The provider did not try to charge us for a receipt, they refused to provide one. Sure enough, that provider (which was across the street from my wife's office) was gone a few months later.

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greg24
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by greg24 » Tue Jan 14, 2020 5:02 pm

Huge gigantic red flag for someone you are entrusting your child's life with.

aerosurfer
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by aerosurfer » Tue Jan 14, 2020 5:09 pm

Is it a home daycare by someone not claiming the income. You may be hosed on 2020 FSA dependent care costs. Otherwise balance the cost of whatever deal they are giving you over a more expensive regular place.


For us using infrequently as a drop in daycare at our lady, it's worth the daily price over a more expensive place I can claim. Not a matter of child safety.

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8foot7
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by 8foot7 » Tue Jan 14, 2020 5:11 pm

I think I would let the daycare provider know that such an unreasonable fee leads you to believe that there is something amiss with the finances of the practice--after all, receipts in commercial business are an accepted standard--and if they are cutting corners with the money, then what other corners are they cutting with their care? Might the state daycare licensing board or the state revenue department need to look into the practice for the safety and security of my children?

I might also suggest that all of the above seems like a lot of trouble if her only concern about providing receipts is the time it would take to generate the receipt, and that I would be willing to go to the trouble to print receipts for each payment that have all of the information I need and would happily simply present said already prepared receipt for her signature at the time of payment, which should take all of 10 seconds to make.

If this is a home daycare you trust and are getting a cut-rate deal on, I might not rock the boat and accept the inability to get reimbursed. But for a place where you are presumably spending over $10,000/year with, not being able to get a receipt is simply unacceptable.

stats99
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by stats99 » Tue Jan 14, 2020 5:21 pm

At the end of the day you need to provide the SSN or EIN of the provider. If the provider gives you this the FSA administrator can probably accept some form from you, probably an affidavit type firm that they provide. Check with the administrator.

If they do not give you the SSN or EiN, then the IRS will not allow the tax break and the FSA administrator will not accept it either.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Katietsu » Tue Jan 14, 2020 5:23 pm

As others have said, I would calmly discuss the issue. Personally, I am not sure how common it is to get a receipt and submit for the FSA every week. So this might be a bookkeeping effort that she was doing just for you and might be a task she dislikes.

A friend who runs a daycare farms out all the financial stuff. She would probably incur an extra cost as well as the hassle factor to provide a weekly receipt. She does provide an annual receipt for tax purposes to each parent. Everything is completely licensed and legit.

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dm200
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by dm200 » Tue Jan 14, 2020 5:24 pm

schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
Hi All,
I am using a daycare provider this year for the first time and I am taking out the full $5K from my paycheck through my employer pre-tax via the dependent care flex plan.
I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week. Has anyone run into this issue with their daycare? I am waiting to hear back from her via email in regards to me filling out a reimbursement form and for her to sign it, so it takes less time instead of her having to write out a receipt. Does anyone have any suggestions on how to get this settled without having to pay so much money?
Can I simply write out a receipt myself and send it in? I don't want to do that since it isn't coming directly from the daycare.
To me, this makes no sense. That is about $1,000 per year!!

Did you ask her why this charge?

Even the "low tech" way of giving receipts with a receipt book and carbon paper for her to keep a copy is not that much work.

Do some (or many) parents pay cash?

No, do not do one yourself. If you prepare a form for her to sign, I would give a copy to her.

Is this home daycare, or an actual center with a lot of children? is this lady the owner, or an employee? if an employee - perhaps she is stealing - and she gets away with it because nobody balances the books and keeps track of payments.

As others have suggested, perhaps you might do some additional checking out this place.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Jags4186 » Tue Jan 14, 2020 5:34 pm

“Hi daycare provider. My FSA account requires a receipt for me to pay you. $20/wk for a receipt is unreasonable. I’ll need it as a condition of continued attendance of my child. If you can’t provide one I’ll need an accounting of everything I’ve paid you before I pay you your last bill and my child will no longer be attending.”

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schutzk21
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by schutzk21 » Tue Jan 14, 2020 5:43 pm

This provider is an at-home daycare. I have a form from the provider that I can fill out and I just need her signature, but she is still saying she will charge $180 a week instead of $160. Her reasoning is because she gave us a "deal" each week of $40 per day since she only needs to watch our child for 6 hours a day instead of 8-10.

She said the amount is what her accountant charges to keep track of the charges. She said for parents that don't have the tax write-off, she doesn't charge this fee. She does, however, charge it for those that are requesting receipts for tax purposes.

For the person that mentioned her charging this because of her income that she reports, can you elaborate a little bit more on this? This is stressful...

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Jags4186 » Tue Jan 14, 2020 5:47 pm

schutzk21 wrote:
Tue Jan 14, 2020 5:43 pm
This provider is an at-home daycare. I have a form from the provider that I can fill out and I just need her signature, but she is still saying she will charge $180 a week instead of $160. Her reasoning is because she gave us a "deal" each week of $40 per day since she only needs to watch our child for 6 hours a day instead of 8-10.

She said the amount is what her accountant charges to keep track of the charges. She said for parents that don't have the tax write-off, she doesn't charge this fee. She does, however, charge it for those that are requesting receipts for tax purposes.

For the person that mentioned her charging this because of her income that she reports, can you elaborate a little bit more on this? This is stressful...
You pay her. She doesn’t report the income. If she provides a receipt to the FSA provider the government knows she’s receiving income and she needs to report and pay taxes.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by willthrill81 » Tue Jan 14, 2020 5:48 pm

RickBoglehead wrote:
Tue Jan 14, 2020 4:49 pm
Sounds like the daycare provider is doing the math on how much documenting her income is going to cost her in taxes...

Is she licensed?
That sounds like the most likely reason.

I'd be suspect with leaving my child with someone exhibiting such behavior.
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by bob60014 » Tue Jan 14, 2020 6:03 pm

schutzk21 wrote:
Tue Jan 14, 2020 5:43 pm
For the person that mentioned her charging this because of her income that she reports, can you elaborate a little bit more on this? This is stressful...
She's cooking the books. All the nonsense about a "deal" is, well......plain nonsense.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by RickBoglehead » Tue Jan 14, 2020 6:31 pm

Is she even licensed?
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by FI4LIFE » Tue Jan 14, 2020 6:46 pm

All of these replies are unnecessarily alarmist. To be honest, I can't remember ever having to provide receipts to receive my own money from my FSA. I would absolutely handwrite a receipt for her to sign if you are sure that is what is required. Take the 5k in a lump sum so only one signature required. You will need her employer ID number. If she doesn't have an EIN she is not licensed and you cannot use your FSA towards payments to her.

MathWizard
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by MathWizard » Tue Jan 14, 2020 6:51 pm

You have 3 options:

1. Pay the $20/week, get the receipt, and use the FSA, or
2. don't pay the $20, don't get a receipt, and don't use the FSA, or
3. move your child.

It is really that simple.

My guess is that the provider is doing cash under the table to save on taxes: income taxes
and both parts of SS (self-employment tax). This will reduce her (I assume her) SS benefits in the future.
She is passing about half the savings of this illegal activity (tax evasion) on to you when you don't get the receipt.

What do you think you should do?

If you don't think that she is saving over $20/week by not reporting income:
If she charges $180/week, self employment tax alone (15.3%) amounts to $27.54/week , more than the extra $20 she says she will charge,
and this does not count any income tax she may be avoiding. If we assume 12% bracket, that would be another $21.60/week .
Note that she is also feeding your child, unless you are providing snacks and lunch.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by stoptothink » Tue Jan 14, 2020 6:52 pm

FI4LIFE wrote:
Tue Jan 14, 2020 6:46 pm
All of these replies are unnecessarily alarmist. To be honest, I can't remember ever having to provide receipts to receive my own money from my FSA. I would absolutely handwrite a receipt for her to sign if you are sure that is what is required. Take the 5k in a lump sum so only one signature required. You will need her employer ID number. If she doesn't have an EIN she is not licensed and you cannot use your FSA towards payments to her.
Not sure how it is alarmist, the actions of the provider paint a pretty clear picture that your last sentence is likely the case. That is a problem for the OP, not only in that they are likely losing a tax benefit, but might need to find a new provider.

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MillennialFinance19
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by MillennialFinance19 » Tue Jan 14, 2020 7:05 pm

The wife and I have been using our FSA for 2 years now. We learned early on that the FSA reimbursement process was irritating, as the vendor, FSA Feds in this case, needs the receipt to show very specific information from the childcare facility. After 2-3 months, we were pretty savvy and haven't had an issue since. The reason this all worked out was because the childcare facility is VERY accommodating and ensures their customers are satisfied.

So to echo the above sentiments of other posters, I would be very concerned (not to mention irritated) if my daycare was behaving in the manner yours is. They are either A) dodging taxes, or B) charging excessive fees because they simply can. Either way, I'd have no part in it. I'm sure you have other legitimate childcare facilities in your area that won't play the same games.

FI4LIFE
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by FI4LIFE » Tue Jan 14, 2020 7:46 pm

stoptothink wrote:
Tue Jan 14, 2020 6:52 pm
FI4LIFE wrote:
Tue Jan 14, 2020 6:46 pm
All of these replies are unnecessarily alarmist. To be honest, I can't remember ever having to provide receipts to receive my own money from my FSA. I would absolutely handwrite a receipt for her to sign if you are sure that is what is required. Take the 5k in a lump sum so only one signature required. You will need her employer ID number. If she doesn't have an EIN she is not licensed and you cannot use your FSA towards payments to her.
Not sure how it is alarmist, the actions of the provider paint a pretty clear picture that your last sentence is likely the case. That is a problem for the OP, not only in that they are likely losing a tax benefit, but might need to find a new provider.
We have no idea what the case is. We don't know the woman. Some have suggested that they would never trust their child with this person. A little over the top based on a couple sentences.

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StevieG72
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by StevieG72 » Tue Jan 14, 2020 7:47 pm

Private providers typically do not report income.

This alone does not make them a bad choice for watching your child.

I have heard horror stories from both licensed and unlicensed daycares. I am sure more goes wrong at unlicensed daycares.

That being said I had my daughter cared for by a private sitter (unlicensed) that came recommended by my wife's friend. In Va. you can watch up to six children without being licensed. Our sitter had 3 children of her own, and watched a max of 3 additional kids.

Overall it was a positive experience. My daughter was cared for in a safe and nurturing environment.
Fools think their own way is right, but the wise listen to others.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Sandi_k » Tue Jan 14, 2020 7:58 pm

Ask her this: if you only need a monthly receipt, will she lower the charge to $20 per month?

I don't see any need for a weekly receipt, and there is no doubt that bookkeepers charge for their time to produce these documents.

I leave it to you to decide other concerns, such as licensed or unlicensed.

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schutzk21
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by schutzk21 » Tue Jan 14, 2020 8:07 pm

I did look her up and she is licensed through the state. This has all been very helpful information. Thank you all.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by stan1 » Tue Jan 14, 2020 8:22 pm

cheese_breath wrote:
Tue Jan 14, 2020 4:49 pm
schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
... Can I simply write out a receipt myself and send it in? ...
You're kidding, right?
Some questions are best left unasked.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by michaelsieg » Tue Jan 14, 2020 8:23 pm

It sounds like you need about 31 weeks to get to the $5000 spending . After a few months, you ask for one receipt for all your payments - my dependent care administrator is very picky and we have to give all of the above mentioned information, otherwise they don't pay us back. So make sure she has all this information (name of child and dates of service) and her tax id on the receipt before you pay her for the receipt. It makes no sense to get weekly receipts, too much hassle of submitting to your dependent care account weekly. We do it just once or twice a year for larger amounts. She will not be able to charge you with a $600 bill for your receipts after 30 weeks, or let me rephrase this, I could not imagine that anyone would do this.

wilked
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by wilked » Tue Jan 14, 2020 8:31 pm

She charges $160 per week. You won’t accumulate $5000 of charges til July. Mid July ask her for a receipt year to date. If she insists on charging $20 pay it. File and collect the $5k. Done

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by smitcat » Tue Jan 14, 2020 8:34 pm

schutzk21 wrote:
Tue Jan 14, 2020 5:43 pm
This provider is an at-home daycare. I have a form from the provider that I can fill out and I just need her signature, but she is still saying she will charge $180 a week instead of $160. Her reasoning is because she gave us a "deal" each week of $40 per day since she only needs to watch our child for 6 hours a day instead of 8-10.

She said the amount is what her accountant charges to keep track of the charges. She said for parents that don't have the tax write-off, she doesn't charge this fee. She does, however, charge it for those that are requesting receipts for tax purposes.

For the person that mentioned her charging this because of her income that she reports, can you elaborate a little bit more on this? This is stressful...
"This provider is an at-home daycare."
- They should be licensed thru the state.
- You should be able to look up their license online
- You should be able to look up any violations they may have
- They should always be able t provide a receipt for no charge
If it was in our state I could post a link for the state licensing website and where to look on the site.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by BolderBoy » Tue Jan 14, 2020 9:36 pm

schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week.
You could tell her, "Nevermind - I'll simply ask the state and federal tax agents for the receipt." Mentally capture the look on her face.

Then look for a new daycare provider.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by nalor511 » Tue Jan 14, 2020 9:44 pm

BolderBoy wrote:
Tue Jan 14, 2020 9:36 pm
schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week.
You could tell her, "Nevermind - I'll simply ask the state and federal tax agents for the receipt." Mentally capture the look on her face.

Then look for a new daycare provider.
I agree the vendor is being difficult, possibly with reason, possibly breaking the law, but that by itself may (or may not) be a reason to look for a new provider, but this sure seems like a dick move suggestion. What's the gain in being antagonistic? Whether the person is paying their taxes or not has nothing to do with how good a childcare provider they may or may not be. And whether to deal with them is up to the OP. Sheesh.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by wilked » Tue Jan 14, 2020 9:52 pm

BolderBoy wrote:
Tue Jan 14, 2020 9:36 pm
schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week.
You could tell her, "Nevermind - I'll simply ask the state and federal tax agents for the receipt." Mentally capture the look on her face.

Then look for a new daycare provider.
Nothing better than playing passive aggressive games with your daycare provider, absolutely

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ResearchMed
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by ResearchMed » Tue Jan 14, 2020 9:56 pm

BolderBoy wrote:
Tue Jan 14, 2020 9:36 pm
schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
I went to submit my first claim for the year to get reimbursed by Infinisource. The website is asking for a receipt of the services. The lady that runs the daycare says she can do this, but will charge me $20 per week. I am not paying this much for a receipt each week.
You could tell her, "Nevermind - I'll simply ask the state and federal tax agents for the receipt." Mentally capture the look on her face.

Then look for a new daycare provider.
No!

FIRST find and hire that new day care provider.
Never let that old one near your children without your presence IF you are going to take that attitude out loud.

I *would* find someone new ASAP, but that's just "us".
Something seems off.

RM
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123
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by 123 » Tue Jan 14, 2020 10:00 pm

StevieG72 wrote:
Tue Jan 14, 2020 7:47 pm
Private providers typically do not report income.

This alone does not make them a bad choice for watching your child.

I have heard horror stories from both licensed and unlicensed daycares. I am sure more goes wrong at unlicensed daycares.

That being said I had my daughter cared for by a private sitter (unlicensed) that came recommended by my wife's friend. In Va. you can watch up to six children without being licensed. Our sitter had 3 children of her own, and watched a max of 3 additional kids.

Overall it was a positive experience. My daughter was cared for in a safe and nurturing environment.
+1 Ultimately parents have to decide what works best for their child and them. You have to realize that you cannot battle and correct all the things that are wrong in the child care business. Some situations might be so attractive in terms of confidence in safety and child care provided that a parent might forgo FSA for that service if that was not compatible with the providers method of doing business.
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getthatmarshmallow
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by getthatmarshmallow » Tue Jan 14, 2020 10:10 pm

Sandi_k wrote:
Tue Jan 14, 2020 7:58 pm
Ask her this: if you only need a monthly receipt, will she lower the charge to $20 per month?

I don't see any need for a weekly receipt, and there is no doubt that bookkeepers charge for their time to produce these documents.

I leave it to you to decide other concerns, such as licensed or unlicensed.
+1. This is why I do with my kid's licensed, accredited preschool. Once a year when the FSA people nag me, I ask the provider to print a statement for the previous year that has all the relevant tax information. Forward the neat and tidy document to the FSA minions, done. In our case the FSA is set up such that I have access to the funds through direct deposit without having to have a receipt as long as it's settled by enrollment of the next year -- it's worth asking them if that's an option, and worth asking her if a quarterly/yearly statement would work.

FWIW it sounds like she has an explanation for the fee that doesn't scream to me that she's working under the table, especially as you say she's licensed. She needs formal tax documentation to come from the accountant, and the accountant charges her.

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TxAg
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by TxAg » Tue Jan 14, 2020 10:23 pm

i always submit the FSA receipt around July once I've incurred $5k worth of charges. It gets paid out through the end of the year by the FSA provider.

Can you do it that way and just pay a one time fee of $20?

Spirit Rider
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Spirit Rider » Wed Jan 15, 2020 12:20 am

stan1 wrote:
Tue Jan 14, 2020 8:22 pm
cheese_breath wrote:
Tue Jan 14, 2020 4:49 pm
schutzk21 wrote:
Tue Jan 14, 2020 4:44 pm
... Can I simply write out a receipt myself and send it in? ...
You're kidding, right?
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Cubicle
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Cubicle » Wed Jan 15, 2020 1:17 am

She's not reporting the income. Plain & simple. Her choice, your decision.

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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by gunn_show » Wed Jan 15, 2020 1:45 am

Cubicle wrote:
Wed Jan 15, 2020 1:17 am
She's not reporting the income. Plain & simple. Her choice, your decision.
This. Assume our daycare provider is doing the same. Only send 1 day a week and in the beginning I asked the wife why we did not get invoices or receipts, never got a good answer. Just that I need to Venmo her every other week. We like the owner, the results, and how our kid does at the daycare so I didn't push it. If I was spending ~$1000/mo and my FSA provider wasn't easy to work with, I would probably react differently.

My company FSA is through Discovery Benefits and they have a "dependent care PDF form" for reimbursement that I put in some basic info, dates of care, and she signs. No EIN or anything required, she just signs her name. I have only submitted once at the end of this last 2019, and zero issues. Look to see if your benefits provider has this form to make it easy. My provider owner gal never flinched when I had her sign it.
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8foot7
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by 8foot7 » Wed Jan 15, 2020 6:37 am

michaelsieg wrote:
Tue Jan 14, 2020 8:23 pm
It sounds like you need about 31 weeks to get to the $5000 spending . After a few months, you ask for one receipt for all your payments - my dependent care administrator is very picky and we have to give all of the above mentioned information, otherwise they don't pay us back. So make sure she has all this information (name of child and dates of service) and her tax id on the receipt before you pay her for the receipt. It makes no sense to get weekly receipts, too much hassle of submitting to your dependent care account weekly. We do it just once or twice a year for larger amounts. She will not be able to charge you with a $600 bill for your receipts after 30 weeks, or let me rephrase this, I could not imagine that anyone would do this.
Maybe the OP doesn't want to have monies deducted and also float the same monies for half a year simply to avoid a ridiculous, stupid fee.

oldfatguy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by oldfatguy » Wed Jan 15, 2020 8:54 am

StevieG72 wrote:
Tue Jan 14, 2020 7:47 pm
Private providers typically do not report income.

This alone does not make them a bad choice for watching your child.
Disagree. It would be a deal breaker for me.

oldfatguy
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by oldfatguy » Wed Jan 15, 2020 8:57 am

schutzk21 wrote:
Tue Jan 14, 2020 5:43 pm
This provider is an at-home daycare. I have a form from the provider that I can fill out and I just need her signature, but she is still saying she will charge $180 a week instead of $160. Her reasoning is because she gave us a "deal" each week of $40 per day since she only needs to watch our child for 6 hours a day instead of 8-10.

She said the amount is what her accountant charges to keep track of the charges. She said for parents that don't have the tax write-off, she doesn't charge this fee. She does, however, charge it for those that are requesting receipts for tax purposes.

For the person that mentioned her charging this because of her income that she reports, can you elaborate a little bit more on this? This is stressful...
Her explanation doesn't make any sense. Is she suggesting that she doesn't keep track of her charges otherwise?

I would find another provider.

Kagord
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Re: Daycare Provider Wants to Charge $20/week for Receipt

Post by Kagord » Wed Jan 15, 2020 9:49 am

Providing a receipt of services is a "cost of doing business". The fact that they are asking $20/week for this is unusual, or over $1000 annually is absurd.

For documentation on the payment, it should show the date or date range with service provided, and the cost for that service. Also, you should have payment distribution amounts that match to the distribution reported by your dependent care account custodian and to the service detail for the tax year. This detail is probably only needed if you are audited, I doubt anyone is actually looking or auditing what you upload.

I think I used to receive a annual tax prep/detail form back from the child care service we used years ago that showed the annual accounting services and payments for the whole year, not sure if this is a standard practice, it was a university child care program.

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