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Childcare Centers & Preschools: Payroll Software vs. Managed Payroll Service (2026)
Childcare centers evaluating payroll options typically compare managed payroll service against payroll software. Here is the honest comparison.
Managed payroll service (like BEG) means a provider processes payroll for you. You submit hours and changes; they handle the rest including tax deposits, compliance, and year-end forms.
Payroll software (Gusto, ADP Run, Paychex Flex) means you run payroll yourself using a platform. You are responsible for configuring it correctly and keeping up with compliance changes.
Side-by-Side Comparison for Childcare Centers
| Payroll Task | Managed Payroll | DIY Software |
|---|---|---|
| Licensing-tied payroll records setup | Configured for you | You configure |
| Tax deposits | Handled | You are responsible |
| Compliance updates | Applied automatically | Your responsibility |
| Multi-state filing | Included | Varies by plan |
| Year-end W-2s | Included | Included or add-on |
| Payroll errors | Provider corrects at cost | Your cost to fix |
| New hire onboarding | Handled | You set up |
Which Is Right for Childcare Centers?
For most childcare centers under 100 employees, managed payroll wins on total cost and compliance coverage. The tradeoff -- giving up direct software access -- is outweighed by removing the compliance risk that comes with self-managing licensing-tied payroll records, subsidy payment coordination, part-time variable-hour staff, teacher certification pay.
Payroll software makes sense if you have dedicated in-house HR staff with genuine expertise in Childcare Centers payroll compliance, prefer hands-on control, and have a low tolerance for vendor dependency. These are real advantages, but they come with real responsibility.
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
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