Managed Payroll · Private Schools

Private school payroll has rules the big platforms miss. We built our process around them.

Spreading 10-month teacher salaries over 12 months, managing summer benefit continuations, tracking substitute teacher and part-time aide payroll, administering 403(b) deductions, and handling payroll gaps during summer break create complexity that generic payroll platforms handle poorly. BEG manages all of it at $25-$45 per employee per month - fully managed, no migration required.

See your exact monthly & annual price - no call required

10-month spreadsTeacher salary spread correctly over 12 months

Sub and aide trackingVariable-hour substitute and part-time staff managed

403(b) readyRetirement deductions and employer contributions included

The Cost of Running It Yourself

What does in-house payroll actually cost a private school?

10-month complexity

Spreading 10-month teacher salaries over 12 pay periods requires precise setup that most platforms get wrong

When a teacher earns a 10-month salary paid over 12 months, benefit deductions, retirement contributions, and tax withholding must be managed across the full 12-month period including summer. Platforms that cannot handle this correctly produce payroll errors in July and August that upset teachers who planned their summer budget based on expected deposits.

Sub tracking burden

Substitute teachers and part-time aides have variable hours and irregular pay - and they still need accurate W-2s in January

Private schools often employ 10-30 substitute teachers who work anywhere from zero to five days per week with no regular schedule. Tracking hours, ensuring ACA measurement period compliance, and preparing accurate year-end W-2s for subs requires a process that most school administrators are managing in spreadsheets.

403(b) errors

403(b) deduction errors create IRS correction obligations and teacher complaints

403(b) plans for private schools require correct employee deferral calculations, employer match processing during the school year and summer, and proper 5500 reporting support. Errors in 403(b) deductions create IRS correction requirements under EPCRS that are costly and time-consuming to fix.

How It Works

Three steps to fully managed private school payroll

Scope review

We map your teacher roster, pay structure (10-month salary spread), substitute teacher tracking method, part-time aide classifications, 403(b) plan details, and benefit election setup. You get a fixed monthly cost.

Setup and first cycle

We configure the 10-month salary spread, summer payroll periods, 403(b) deduction and match rules, substitute teacher pay rates, and ACA measurement period tracking. Your first cycles run alongside ours for verification.

Ongoing managed service

Every pay cycle year-round - including summer - plus substitute tracking, 403(b) processing, and year-end W-2 preparation for all staff. Fully managed by BEG.

What BEG Handles

Private school payroll complexity - fully covered

✓10-month teacher salary spread over 12 monthly or bi-weekly pay periods with correct withholding

✓Summer payroll processing for teachers on 12-month pay schedules including benefit continuation

✓Substitute teacher payroll with variable hours, irregular schedules, and daily rate or hourly pay

✓Part-time aide and classroom assistant payroll with correct overtime tracking

✓403(b) employee deferral deductions and employer match processing throughout the school year and summer

✓Benefit deduction management for health, dental, and supplemental benefits across school year and summer

✓ACA measurement period tracking for substitute and part-time staff approaching benefit eligibility thresholds

✓Year-end W-2 preparation for all staff including substitutes and part-time aides

✓New hire setup and mid-year departure processing for teacher and staff turnover

✓State income tax withholding and filing for schools operating in states with income tax requirements

Side by Side

BEG Managed Payroll vs. In-House vs. Generic Software

Factor	BEG Managed	In-House Hire	Generic Software
10-month salary spread over 12 months	Fully managed	Complex manual setup	Often not supported
Summer payroll for benefit continuation	Included	Requires careful setup	You configure it
Substitute teacher variable-hour tracking	Included	Spreadsheet-heavy	You manage it
403(b) deductions and employer match	Included	Included with expertise	You configure it
ACA measurement period for subs	Tracked automatically	Manual tracking	Add-on module
Year-end W-2 for all staff	Included	Included	Extra fee
Monthly cost (45 staff)	$1,125-$2,025	$5,800-$8,300	$500-$1,000 + risk

The Hidden Cost

When a teacher's July deposit is wrong, that is a payroll problem your head of school hears about.

Teachers who chose a 12-month pay spread planned their summer budget around those deposits. When a platform gets the 10-month spread wrong in summer, the conversation escalates to leadership immediately. BEG manages the 10-month spread correctly so those calls never happen.

Your Next Transition Window

The right time to transition payroll is before the school year starts - not in October.

Private school payroll transitions take 30-60 days. Schools that begin the scope review process in May or June arrive at September with a fully managed system handling teacher pay from day one. Schools that wait typically carry suboptimal payroll management through another full academic year.

15 minutes. We scope your school, give you a fixed monthly cost, and show you what managing the 10-month spread correctly looks like. Pricing starts at $25 PEPM.

Explore More

More managed payroll resources

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FAQ

Common questions from private schools

How does BEG handle 10-month teacher salary spreads?

BEG configures teacher salaries to be paid in equal amounts across 12 months regardless of the 10-month academic calendar. Benefit deductions, 403(b) contributions, and tax withholding are correctly calculated based on the full annual salary spread evenly across all pay periods, including July and August. Summer deposits match the school-year deposit amount exactly, which is what teachers who elected the 12-month spread expect.

Can BEG track substitute teacher hours and prepare their W-2s?

Yes. BEG manages substitute teacher payroll with variable hours, irregular schedules, daily or hourly rates, and no guaranteed weekly minimum. We track all hours worked across the school year for ACA measurement purposes and prepare accurate year-end W-2s for every substitute who worked during the year, regardless of how few days they worked.

How does BEG handle 403(b) contributions?

BEG processes employee 403(b) deferrals from each paycheck, applies employer match calculations if the plan includes matching, and tracks year-to-date contributions against IRS annual limits. When a teacher's deferral reaches the annual limit, BEG stops the deduction automatically. Employer match contributions are processed correctly even during summer payroll periods when no work is performed.

What does $25-$45 PEPM include for a private school?

Everything: payroll processing for teachers and all staff, 10-month salary spread management, substitute and part-time aide tracking, 403(b) deduction processing, benefit continuation during summer, year-end W-2 preparation for all staff, and dedicated BEG support. No per-cycle fees.

Do we need to switch payroll platforms?

No. BEG operates as your managed payroll team inside your existing system. If you are currently managing payroll on a platform that does not handle 10-month spreads correctly, we can also help migrate to a better system - but migration is never required to start working with BEG.