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unalindura77
28-06-2013, 03:53 PM
Hi there

Have prospective parent who definitely wants to use my services (when reg) and asking if I would like to take out my annual leave weeks of yearly payments, so take it out of 52 weeks and then divide the pay evenly between 12 months so that even when I am on leave I will have income.

Do any of you do this or is it deemed too risky? For example, if the parent goes before the year you lose out on money.

Your thoughts are appreciated and I do hope I have made myself clear :panic:

Thanks....

Goatgirl
28-06-2013, 04:15 PM
Hi :),
I don't do this for the very reason you mention. I did it for one family and exactly that happened :eek:. Very annoying. I ask for payment monthly or 4 weekly in advance as I find that there are usually adjustments to be made anyway.

Some people do do it and find it works for them though....
Hope it works out :thumbsup:

ziggy
28-06-2013, 04:17 PM
I wouldnt do it personally. I dont even ask for payment in advance. I just get paid at end of week or month and this way i know what i'm doing.

Could get messy if parent leaves and disputes payment

Kiddleywinks
28-06-2013, 04:18 PM
Yes that's correct

Weekly fees x 48 weeks (the other 4 being annual leave) then divide by 52 = regular weekly amount or by 12 for a monthly amount

You are also correct that should a contract finish before the year is up, there will probably be an outstanding amount due to you.
I keep a running total of the fees due to date, and the amount paid to date, this shows the balance.
I do this on a spreadsheet, and at the start of the year I print it off as a 'payment schedule' to give to parents so they can see how it fluctuates from owing me, to being in credit, then back to owing me, to being 0.00 at the end of the year (should payments be maintained of course :rolleyes:)

You won't lose out if parent leaves early and refuses to pay the outstanding bill as your insurance company should cover this very situation

unalindura77
28-06-2013, 04:29 PM
Oh I see!

Thanks everyone, I guess from your replies it's about doing what's right for you....

I didn't know about insurance companies doing this for any lost earnings so that's great to know!

:thumbsup:

Kiddleywinks
28-06-2013, 04:32 PM
There's nothing stopping you asking for fees in advance either - helps to minimise the risk a little :thumbsup:

hectors house
28-06-2013, 05:44 PM
Yes that's correct

Weekly fees x 48 weeks (the other 4 being annual leave) then divide by 52 = regular weekly amount or by 12 for a monthly amount

You are also correct that should a contract finish before the year is up, there will probably be an outstanding amount due to you.
I keep a running total of the fees due to date, and the amount paid to date, this shows the balance.
I do this on a spreadsheet, and at the start of the year I print it off as a 'payment schedule' to give to parents so they can see how it fluctuates from owing me, to being in credit, then back to owing me, to being 0.00 at the end of the year (should payments be maintained of course :rolleyes:)

You won't lose out if parent leaves early and refuses to pay the outstanding bill as your insurance company should cover this very situation

I used to do this when I childminded siblings whose mum was a teacher - I only used to charge quarter fee for holidays back then as I liked having some time with my own children, but the downside was instead of having £100 a week (yes for 2 children - it was 20 years ago!) I only had £25 a week, so didn't actually have any money to do anything with my own children in the holidays. So worked out 39 weeks at £100 then £13 weeks at £25 - added together and divided by 12 - kept a running amount as sometimes she was in credit and sometimes debit - had it written in contract that final balance would be settled by either party when contract ended. It worked well as I had already minded for this family for 2 years and felt I could trust them.

Chatterbox Childcare
28-06-2013, 05:56 PM
I do exactly what you are suggesting and anything over 2 weeks holiday I credit back. I would never run in arrears as parents could use my services and then not pay and move away.

rickysmiths
28-06-2013, 06:45 PM
I will only do it for children who are with me for three days or more and as I take 5 weeks holiday at half fee I charge them for 49.5 weeks. I explain their financial year with me begins with the first payment and that at some points in the year if they left they would have a balance to pay me and I might have some to repay to them. I then do an account for the year for them showing how the payments owing balance with what is paid. I will not use this method for school children even if I have them in the holidays because if they were to leave at certain times of the year having not used the holidays the repayment would be too much.

I take a four weeks fees Deposit which I keep until the end of the contract and I am paid in advance to insure I am not left having to make an unnecessary insurance claim when a family leaves.


I also have clearly stated on my Contracts that if they fail to pay on time they pay a late fee and if payment is five days or more late childcare is suspended until payments are up to date. If this happens twice I no longer accept Child Care Vouchers from them or payment into the bank it would become strictly cash. (I have never had to instigate this!)