Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Childcare
Childcare Centers & Preschools: Managed Payroll for Small Businesses (Under 25 Employees) (2026)
Managed payroll at $25-$45 PEPM all-inclusive makes economic sense at nearly every size for childcare centers, but the specific value drivers differ depending on headcount.
Payroll at Different Sizes for Childcare Centers
| Childcare Centers Size | Monthly Cost | vs. In-House Hire |
|---|---|---|
| Single site (15-30 staff) | $375-$1,350/mo | Save $43K-$68K/yr |
| Multi-site (30-80 staff) | $750-$3,600/mo | Save $38K-$60K/yr |
| Childcare chain (80-200 staff) | $2,000-$9,000/mo | Save $18K+/yr |
The comparison is against an in-house hire at $45,000-$70,000 fully loaded to $47K-$73K per year.
Under 25 Employees: The Clearest ROI
For childcare centers under 25 employees, in-house payroll cannot be justified. A payroll coordinator costs $45,000-$70,000 fully loaded -- compared to $625-$1,125/month for managed payroll. The savings pay for a year of managed payroll in the first 2-3 months.
25-75 Employees: Complexity Drives the Case
In the 25-75 employee range, childcare centers are dealing with more licensing-tied payroll records, subsidy payment coordination, part-time variable-hour staff, teacher certification pay. An in-house generalist is less likely to have the depth needed in these areas. Managed payroll provides specialist coverage that reduces exposure.
75-200 Employees: Hybrid Approaches Emerge
At 75+ employees, childcare centers often consider a hybrid approach: an HR generalist handles employee relations and benefits while a managed payroll provider handles the compliance-heavy payroll function. This keeps an internal HR presence while outsourcing the most technically complex piece.
How to Get a Quote for Your Childcare Centers
BEG quotes managed payroll based on your actual headcount and pay frequency. For most childcare centers, the first discovery call includes a custom cost comparison against your current setup.
Managed Payroll, Handled.
BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Do your payroll records meet state childcare licensing requirements?
Yes. Records include employee name, position, hours worked, wages paid, and tax withholding, formatted for state childcare licensing agencies upon request.
How do you handle part-time and variable-hour teachers?
Part-time and variable-hour employees are processed based on actual hours worked each period. ACA full-time equivalent tracking is done for centers with 50+ combined FTEs.
How do you handle certification pay differentials?
Teachers with CDA, associate, or bachelor's degree credentials are set up with corresponding pay grades. Pay changes when credentials are earned effective on the date you specify.
What does BEG charge for childcare center payroll?
Childcare payroll runs at $25-$45 per employee per month. For a center with 25 employees, that is $625-$1,125 per month with licensing-ready recordkeeping included.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Childcare Centers & Preschools. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
From the blog