Tax Receipts
Payments
Tax receipts are generated based on payments made, and for that reason each payment is attributed to a specific person. When you record a payment, by default the payment will be added to the tax receipt of the Primary Payer for that family.
Even though the primary payer may be set to one person, you can always override it here before recording the payment. If a payment is not tax deductible, uncheck the Tax Deductible checkbox and this will prevent it from being counted on the tax receipt.
After a payment is recorded, the payer for that payment is listed just below the payment amount on the transaction register. To change the payer after the fact, click on the payment as listed and it will cycle through the three options, Mother, Father, Other. Your change is saved automatically.
In the same way, the payment is marked as being Tax Deductible in the TD column. To modify this value, click on the little checkmark and it will be removed from the tax receipt.
Primary Payer
The primary payer refers to the person who primarily pays the childcare fees, and can be set on the Payment Information tab, in the Financials menu of each family.
The primary payer is not only the person selected by default when recording a payment but is also the person who will receive the invoice when invoices are emailed out.
If you select either Mother or Father, the contact information will be pulled in from that parent's profile page. That information can not be modified here, but it has to be modified on their profile page. The Other option can be used if neither of the parents primarily make payment. For example, if grandma typically pays for the childcare fees, you can select Other, enter in grandma's name and email address, and she will receive the invoices when you email them out. She will also then be the default payer when you record a payment on this family. This is also a good option if a social worker is responsible for payment, so you can enter in the social worker's name and email address and they will receive the invoice each month.
Receipt
To generate tax receipts for parents, go to Reports / Money / Annual Tax Receipt. When the report opens you may have to click the Run Report button. By default, the report will generate receipts for all families, both active and inactive, for the previous year.
The total amount calculated for each receipt is based on payments received, not invoices generated, which means if the December invoice was not paid until January, it will not be included on the tax receipt. If you need it to be included on the tax receipt, then change the payment date to a day in December and run your report again.
Breakdown
If a family has multiple children, Timesavr will automatically calculate a breakdown per child. However, because payments are not applied to individual children, in some cases this calculation will have to make some assumptions. This is how the breakdown is calculated:
- Look at all charges for the tax year, and look for each child's name in the comment field for each charge.
- Sum all the charges for each child to determine a percentage of fees collected for each child.
- Sum all the payments for the family, and split the total according to the percentages calculated in the previous step.
In most cases this will be accurate, but if you have any charges without a child's name attached, then that amount is split according to the calculated percentages and that may not be correct. In order to ensure a 100% accurate ratio, make sure that each charge has a child's name in the comment. If a single charge applies to multiple children, then you will have to split that amount into several separate charges, one for each child.
If none of your charges have the child's name in the comment field, then you likely have the option disabled. To enable the option to automatically include the child's name in the comment for each charge, look on the Financial tab of your Settings page for the option "Include the child's name in the comment on each charge".
You can disable this option to automatically calculate a breakdown, on the Financials tab of your Settings page on the desktop app.
Options
Like all TimeSavr reports, your options for the tax receipt are listed on the left hand side. By default, all children in the family are named on the receipt, but if you want it to include only those children who received care during the year, you can change that option. Another common option is to include the transactions list on the receipt. By default this is turned off and the receipt will only show the total, but it may be useful if a family requires this kind of detail for a financial audit, for example.
Signature
You also have the option of uploading a signature image to be displayed on the tax receipt, and to show your name and title below the signature. To upload your signature go to Settings / Financial and scroll down to the section titled Tax Receipt Signature.
Signatures must be uploaded in image format. Click on the signature box to be prompted to upload your signature image. Valid image types are bmp, gif, jpg, png and tiff.
Logo
Your logo can be included on the tax receipt
Emailing Receipts
Receipts can be printed, or emailed. To email the tax receipts, click the Email button in the top left hand corner of the Tax Receipts report (Reports / Money / Annual Tax Receipt).
Clicking the email button will not immediately email the receipts. Instead, a new window will open, giving you the opportunity to type in a message to be included on the email.
Before you send, confirm that TimeSavr is ready to send the same number of receipts that you're expecting to send.
Each tax receipt will be sent individually to each parent, with your email message in the body of the email, and the tax receipt attached in PDF format. As the receipts are being sent out, the Status message will change to indicate the success or failure of each receipt. When all the tax receipts are finished sending, a final status will be displayed. If there are any errors in sending, click the link to the error report to see which families did not receive their receipt, and why. Most likely there is no email address on the payer's profile (Mother, Father or Other).
Emails will be sent by TimeSavr, on behalf of your organization. This means when parents receive the emails, the sending address will appear as "no-monitor@timesavr.net", but if they click Reply on the email, the reply will be sent to the email address defined in your Centre Profile (Admin / Centre Profile).
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