At my wits end with an extremely naughty three and a half year old....?

my daughter is almost three and a half and for the past 2 weeks has been beyond just the normal three year old naughty EVERYTHING is a fight, i have to repeat myself 5 times to get her to do anything at all even the simplest tasks, she back chats all the time, she peed all over her bedroom floor before and when i asked her why she said "because Boof can" (our puppy who is 8 weeks old and not quiet yet toilet trained). I am very conscious of ensuring she is a good kid and have disciplined from a young age, using the time out method mostly and explaining to her what and why she was in trouble, she occasionally gets a smack on the butt when she does something dangerous or just plain nasty. She goes to daycare 5 mornings a week and i think this may be what is wrong, i was even told by one of her carers that she spent a huge chunk of the morning on the time out matt because she refused to play nicely with the other children....she is turning into one of "those" children and i just dont know what to do....i am caught between a rock and a hard place i cant afford to give up work and have no other options as to the times i work...do you think this is a phase that will pass or in your opinion do i need to get her out of care asap????
 
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