More Paperwork
After every session have your therapists make an entry on the monthly time sheet. I have provided an example in my files page. Have one time sheet per therapist per calendar month. At the end of the calendar month tally up the hours, multiply by the hourly rate and that is what the therapists get paid. Have them sign the completed time sheet.
Get a standard receipt book from an office supply store. Make sure there are at least 3 copies of each receipt. One copy will go the therapists for their records, one will go to the BC or the federal government and one will be for your records.
Every time the therapists are paid, get them to sign and date a receipt. Have the total match the time sheet, include their SIN number, state which calendar month it is for and state what services have been rendered (i.e. ABA tutoring). Refer to my Files page for an example.
Remember that's two signatures per pay cheque. Don't give them money until you have received both signatures!! If you fall behind in your paperwork, I guarantee you will eventually lose (more) money.
Do I deduct taxes?
Probably not. Refer to my previous page Employee or Contractor?
To pay a self employed person, you simply multiple their hourly rate by the number of hours worked and pay them that amount. Ensure their SIN is on every receipt. It's up to them to declare their income to the government. That is their concern, not yours.
Can I pay them with cash?
God no! You want to leave a paper trail to protect yourself. Pay them by cheque and put the cheque number on the signed receipt.
What do I do at year end?
At the end of the year have the therapists sign a yearly work statement, which details how much they earned. Keep this for your records. If your therapists are self employed, there is no need for T4 slips.
What do I do when a therapist leaves?
If a therapist is leaving, make sure they are not paid until you have three signatures. No exceptions! If you try to play catch up later, you will never find them. If necessary have them wait a day or two until you have the paperwork ready, but don't pay them until you are ready.
Don't be late
Be prepared to pay all of your team on time every month. Don't ever be late with your payments. Your team members are counting on these payments for their livelihood. If you default on payments, you may find yourself without a team!