Self-employed individual or an employee

The amount of control a parent has over your work determines if you are a self-employed individual or an employee. It also determines if you can deduct daycare expenses from your daycare income.

Generally, you are a self-employed individual if you control all of the following:

• the number of hours you work
• the premises and materials you use
• the way you perform your daycare duties

Generally, you are an employee if the parent does all of the following:

• specifies the work to be done
• specifies the working hours
• supervises your work

As a self-employed individual, you can deduct expenses against your daycare income. As an employee, you cannot deduct daycare expenses.

You also cannot deduct daycare expenses from any income you earn for taking care of children on a part-time basis or only on occasion, and it is impossible for you to foresee the length and consistency of this work. When this applies, you report your earnings from this work as “Other employment income” on line 104 of your income tax and benefit return.

If you are not sure if you are a self-employed individual or an employee, see Guide RC4110, Employee or Self-employed?

Forms and publications

• Guide RC4110, Employee or Self-employed?
• Pamphlet P134, Using your Home for Daycare

Date modified:

2017-02-15