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Family Child Care Payroll Service

An affordable service for California child care providers

(and other small business owners)

General daycare assistants cannot be treated as 1099 independent contractors.
A lot of folks seem to do this, but like our mothers always said, that doesn't make it right.
For those who get caught, the unpaid payroll taxes and penalties can be quite significant.
It's much easier and cheaper to do it right and pay your helpers properly.

Ready to sign up?

  • Convenient - Input your employee payroll data through our secure web page
  • Comprehensive - Covers all payroll tax forms, payroll tax deposits and W-2s
  • Cost Effective - Much cheaper than the big payroll companies
  • Superior Personalized Service - Prompt help with special issues

Our Low Price: $50** per month for up to 5 employees for most child care providers

Our Family Child Care Payroll Service takes care of all your payroll tasks, except that you write the actual paychecks. Enter your employee hours through our secure web page every two weeks for paydays that fall on every other Friday, according to our Payroll Service Calendar. We calculate your employees’ tax withholding and net pay and email you the paycheck stubs. You write the paychecks yourself or have them directly deposited into an employee's bank account. (There is an additional charge for direct deposit of $1.25 per deposit.) We determine the amounts and due dates of your tax payments and advise you via email the amount to be withdrawn from your bank account. At the end of each quarter, we prepare and submit your payroll tax returns, providing hard copies for your records.

At the end of the year, we issue a Form W-2 to each of your employees. Don't give your workers a 1099-MISC. Many daycare providers think this is allowed and some tax preparers even encourage it, but that doesn't make it right. Even assistants working minimal hours must be treated as employees. Doing things the correct way from the beginning is much easier and cheaper than risking the higher cost and hassle of unpleasant consequences later.

Alison's Payroll Tax Guide provides an overview of the various Federal and California payroll taxes and forms (all of which our service takes care of for you). Note that you can save money by hiring certain family members. Some payroll taxes don't apply to family employees.

**Pay $150 every three months to get this price or pay $52 monthly. A higher fee of $67 monthly or $195 every three months will apply if you have more than five employees (at one time). The higher fee also applies if you are required by the Internal Revenue Service to deposit payroll taxes monthly rather than quarterly. This is not too common for family child care providers and generally applies only to those paying high wages and having the equivalent of at least two full-time employees.

We started this Payroll Service to offer excellent service at a reasonable cost for family child care providers who hire helpers. This is peace of mind that you can afford.


Ready to sign up?

  • An Initial Setup Fee of $60 applies for all new or returning payroll clients
  • California small businesses only
  • Sole proprietors only (no corporations)
  • Internet access is required