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 the senior therapists will give you an invoice for payment (assuming of course that they are not billing the Autism Funds Unit). Junior Therapists will not do this and you can then transfer the hours from the Daily Time Sheet onto an invoice on their behalf. Many parents use the time sheets as invoices and there is nothing wrong with that if all the information is correct and neat. What they are not aware of is that you may need different descriptions of service (i.e. Child Care, Attendant or ABA Tutoring) depending on your tax needs. You could tell them what to write, but trust me, they will screw it up and you will end up chasing your tail trying to correct it.
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. There is an example on my Files page. An alternative is to use the invoice sample on my Files page which is an excel spreadsheet. Page 2 contains a receipt for that calendar month. You can print off a duplicate for the therapists or scan and email it to them. Just ensure that they sign the receipt before you pay them.
Every time the therapists are paid, get them to sign and date a receipt. Have the total match the time sheet or invoice, 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.
Don’t give them money until you have received a signature!! 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 multiply 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?
I used to recommend that you fill out a yearly work statement, however I have changed my mind considering how often therapists move on. Just ensure that each month’s invoice and receipt is properly filled out and signed. There is an example on my Files page if you still want it. 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 their signature. 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!