Managed Payroll · Childcare & Daycare Centers
High turnover, substitute staff, and state subsidy compliance -- fully managed. Childcare centers face some of the highest staff turnover rates of any industry, with constant new hire onboarding, substitute teacher tracking, FLSA complexity, and state childcare subsidy employment requirements. We manage all of it at $25-$45 per employee per month -- so you focus on the children, not the payroll.
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The Childcare Payroll Reality
What We Manage
Full-time and part-time salaried and hourly staff with PTO accrual, benefits eligibility tracking, and FLSA overtime calculations. ACA compliance reporting for centers with 50+ full-time equivalent employees.
W-2 payroll for on-call and substitute staff who meet the IRS employee classification standard. We flag your substitute arrangements that carry contractor risk before they become an audit issue.
Exempt salary employees with proper FLSA exemption documentation. We ensure your center director and administrative staff are classified correctly under the executive, administrative, or professional exemptions.
New hire paperwork, I-9 verification, state new hire reporting, direct deposit setup, and benefits enrollment -- managed by BEG every time you bring someone on. No backlog, no missed filings.
How It Works
We map your full-time and part-time staff roster, substitute arrangements, state subsidy programs, and reporting requirements. You get a fixed monthly cost before we start.
We review substitute classifications, configure FLSA exemption documentation, set up state subsidy payroll reporting, and handle new hire processing workflows. No migration required -- we work in your existing system.
Every pay cycle, every new hire, every termination, every state filing, and every subsidy reporting requirement -- fully managed by BEG. Your team approves, we execute.
What You Get
Common objection: "We do not have time to switch payroll platforms while managing a center."
We do not require you to change platforms. BEG operates as your managed payroll team inside your current system. If you want to move to isolved for better HR and payroll capabilities, we can manage that transition -- but it is never a requirement to get started.
Common objection: "Payroll services charge extra for high-turnover new hire processing and year-end W-2s."
The $25-$45 PEPM rate covers everything: payroll processing, new hire setup, state filings, year-end W-2s, compliance updates, and BEG support. High-turnover processing is included.
Common objection: "We call our payroll company and get a different person every time who does not know our center."
Your BEG payroll specialist is your ongoing point of contact. When a teacher gives two days notice, when you hire a substitute mid-cycle, or when your state sends a subsidy compliance request -- one message to your BEG contact handles it. No explaining your center from scratch on every call.
Getting Started
15 minutes. We map your full-time and part-time staff, substitute arrangements, and state subsidy requirements -- and give you a fixed monthly price.
Agreement signed, system access granted, staff roster and substitute classification arrangements reviewed.
Substitute classification review, FLSA exemption documentation, and subsidy payroll reporting configured in your existing system.
Your first fully managed childcare pay run -- BEG executes, your team approves. New hire processing hands off to BEG on day one.
The Math on Waiting
A childcare center with 10 substitutes paid as 1099 contractors for three years carries significant reclassification exposure if the IRS or state audits the arrangement. Fully managed payroll at $25-$45 PEPM on a 20-person center costs under $11,000 per year -- including proper classification review that eliminates the risk.
Your Next Transition Window
Payroll transitions take 30-60 days. If your state subsidy renewal is coming up, or if turnover is high enough that payroll is consuming director time every cycle, the scope review costs you nothing and the fixed monthly price gives you certainty going forward.
15 minutes. We scope your staff structure, substitute arrangements, and subsidy requirements -- and give you a fixed monthly cost.
FAQ
Yes. New hire paperwork, I-9 verification, state new hire reporting, direct deposit setup, and termination processing are all included in the flat monthly rate. High-turnover centers are exactly what this model is designed for.
We review your substitute arrangements and classify them correctly under IRS and state criteria. If your substitutes qualify as W-2 employees, we process them as W-2. If you have arrangements that genuinely qualify as independent contractor relationships, we process 1099-NEC and maintain the documentation. We flag classification risk before it becomes an audit problem.
We maintain payroll records in the format most state subsidy programs require for compliance documentation. If your state CCAP or similar program requests payroll records during a compliance review or renewal, we prepare the required documentation as part of the managed service.
No. BEG operates as your managed payroll team inside your existing system. Migration is an option if you want to upgrade, never a requirement to get started.
Everything: payroll processing, new hire and termination processing, state tax filings, year-end W-2s, compliance updates, and BEG support.
Yes. Childcare teachers, aides, and support staff are entitled to FLSA minimum wage and overtime unless they meet a specific exemption. Most classroom staff do not qualify for any FLSA exemption and must be paid overtime at 1.5x their regular rate after 40 hours in a workweek. Directors and administrators may qualify for the executive or administrative exemption if they meet the salary threshold and duties tests.
State CCAP, Head Start, and Child Care Development Fund auditors typically request payroll records showing staff names, job titles, hours worked, hourly rates, and total wages paid during the audit period. We maintain payroll records in the standard format state agencies expect -- so when an auditor makes a documentation request, you can produce accurate records immediately rather than scrambling to reconstruct them.
From signed agreement to live payroll: 3-5 business days. We review your substitute classifications, configure FLSA exemption documentation, and set up your payroll in your existing system. High-turnover centers often see the most immediate relief -- new hire processing and termination handling that used to consume hours each week hands off to BEG on day one.
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