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Discussion Starter · #1 ·
Hi..<br><br>
Can someone please explain these to me?????????<br><br>
How do they work???<br><br>
Do you need to get the childcare providers SS# or can they just give you a receipt for amt paid???<br><br>
I just had a set of parents interview me to care for their new little one and am just a bit leery of giving out my SS# bc I had an issue with identity theft and another with a bad roomate many years ago using it to get some credit cards..all has been fixed, thank god but I am leery of giving it out and then things not working out and then my SS# being out there.....<br><br>
Taxes aren't the issue.....<br><br>
Just not sure how these things work...<br><br>
Thanks mamas
 

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I have a flexible spending account, but i use mine for health care stuff: co pays on prescriptions, eyeglasses, that sort of thing.<br><br>
But i just happen to have a new packet from the company that manages my FSA, and I see it requires the childcare providers Social Security number or Tax ID (my son goes to after school karate camp twice a week, so I would use the owners tax ID#).<br><br>
When I sent in my receipt for my eyeglasses, it was from the business of course, but it also had the name and ID of the optometrist that examined my eyes. I imagine the daycare issue is similar. When I have an office visit or a dental appointment it has the MD or DDS # and info on it.<br><br>
I used my private sitters SS# on my tax return years ago, because I could claim it otherwise.
 

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Well, I only used a flexible spending account once. It was the year I was pregnant with DS and DH had to have some oral surgery. I know it can also be used for childcare. Basically, it works like this. At the beginning of the year the account holder decides how much money they want put into the account from each paycheck. The money is then automatically deducted from the person's gross salary and they don't have to pay taxes on it. To access the money in the account I had to pay for the service (in my case the medical expense, but could be childcare or any of the other eligible expenses) and provide a receipt to the flexible spending account administrator. Then I was reimbursed for the expense. This is the way flexible spending accounts have worked at two different places that I have worked.<br><br>
If you are uncomfortable giving out your social security number then don't do it. It's not impossible that they need it for some reason- but if it is to pay employment taxes or make some sort of automatic deduction from an account they should be able to show you the form they are entering the information into- and you should take a copy of it for your records.
 

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Do you have a business license with a tax ID? The social security number is to make sure you are a real licensed business taking money and paying taxes on it. To make sure the parents aren't paying someone under the table. I think you can find some more information at <a href="http://www.irs.gov" target="_blank">www.irs.gov</a>
 

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Discussion Starter · #5 ·
No I don't...<br><br>
This is just something I was doing to help me stay at home...I love children and figured why not?? It's something I have done before, gave them fabulous references etc...it's just this one family with 2 little ones and then my little one....15 hours a week...<br><br>
I can see the under the table thing...<br><br>
It's just I don't really want my ss# out there again unless it absolutly positively has to be out there....I've just recently gotten everything fixed and my credit and such is my credit again, not someone else's.....<br><br>
I looked at irs.gov but it's all gobblygook to me....LOL
 

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We have a flex spending account for childcare. They take money out of our paychecks pre-tax and then once we turn in a form signed by our childcare provider, we get reimbursed. It's actually a really big savings for us, 30% or so, so it's definitely worth it.<br><br>
Our child care provider has never given us her SSN. She uses a Tax ID#. I would recommend getting one if you are running a business like this. If the parents decide not to use the flex spending account, then they'll want to get their child care tax credit, and they'll need either a TID# or a SSN# for that. So you'll bump into the issue there if not now.
 

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Discussion Starter · #7 ·
Gotcha...I'll look into it and see how long it takes to get one and such. I am only planning on doing this for this one family....at least for now....thanks <img alt="" class="inlineimg" src="http://www.mothering.com/discussions/images/smilies/smile.gif" style="border:0px solid;" title="smile">
 

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We did the flex account and it was great. We send our son to daycare so we had to have copies of receipts and the daycare tax id # to send in every time.
 
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