Daycare Tax Tips

FCC Payroll Service: Full Service at a Low Cost

Serving child care providers and other California small business owners

The FCC Payroll Service was launched in January 2010 by Alison T. Jacks E.A.

Child care providers who hire assistants generally use some kind of payroll service. Others take on the payroll tasks themselves. Some providers improperly avoid payroll issues altogether. Possibly they give their worker a 1099-MISC at the end of the year, rather than the required Form W-2.

Alison started the FCC Payroll Service after years of dissatisfaction with the existing options for child care providers with employees. It's risky to neglect payroll paperwork, but expensive to use one of the major payroll services. On the other hand, it's complicated and time consuming for a business owner to do the work themselves.

We handle all payroll tasks, except that business owners write the actual paychecks or use direct deposit. Payroll customers enter employee hours through our secure website every two weeks for paydays that fall on every other Friday.** We calculate employees’ tax withholding and net paychecks and send out the paycheck stubs via email. We schedule payroll tax deposits to be withdrawn from each employer's bank account. Generally payroll tax payments are made every three months, at the end of the quarter, when we also prepare and submit payroll tax returns. At the end of the year, we issue employee W-2 forms.

**Note that per California labor law, child care workers must be paid at least twice per month. Some providers pay their employees only once per month, but this is not allowed.

Last updated 23 July 2013

Posted on 2009-11-22 06:08:12