What Hours Should You Count?

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In my article “How Much Do You Make Per Hour?”, I explained how you can calculate your hourly wage using numbers from your tax forms.

Family child care provider Renita from Oklahoma pointed out to me that she worked many other hours on business activities away from her home. These included time spent shopping for business items, going to the library for children’s books, attending training workshops, going to the bank to deposit parent checks, and so on.

I didn’t think to include them in my article because hours spent on business activities away from your home cannot be included in your Time-Space Percentage that is calculated on IRS Form 8829. This form only allows providers to count hours spent on business activities in your home.

But, it’s true that these hours are part of the work you do as a family child care provider!

So, you can include these hours when calculating your hourly wage. If you do this and want to compare your hourly wage with other workers, you should probably not count travel time for these activities. Other workers spend time commuting to work that is not reflected in their wage.

Sharing Rate Information

Another reader disagreed with the idea of sharing your hourly rate with parents. I mentioned sharing your hourly rate if a parent makes a comment about how much money you must be making based on the number of children in your care.

As a general rule I believe your hourly wage is a private matter. You don’t want to complain to parents about how little you might be making. Some parents may make less than you do.

In the end, happiness is not about how much money you make.

Tom Copeland – www.tomcopelandblog.com

Image credit: https://www.flickr.com/photos/speedye/


Categories: Money Management, Money Management & Retirement, Record Keeping & Taxes, Time-Space Percentage

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