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Childcare Centers & Preschools: How to Switch Payroll Providers (2026)
Switching payroll providers at a childcare center means moving year-to-date wages and taxes per employee, every pay code for licensing-tied payroll records, subsidy payment coordination and part-time variable-hour staff, the exemption records for lead teachers and assistant teachers, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from a childcare center
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, licensing-tied payroll records, subsidy payment coordination, part-time variable-hour staff and teacher certification pay, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for lead teachers and assistant teachers.
Under the federal Child Care and Development Fund rules, every licensed, regulated or registered child care provider and every provider paid with CCDF assistance must obtain a criminal background check for each child care staff member, including contract employees. The check includes an FBI fingerprint check, the National Sex Offender Registry, and state criminal, sex offender and child abuse registries for each state of residence in the past five years, and states must return results within 45 days.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of childcare center pay codes is done before that first run, not after.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- Under the federal Child Care and Development Fund rules, every licensed, regulated or registered child care provider and every provider paid with CCDF assistance must obtain a criminal background check for each child care staff member, including contract employees. The check includes an FBI fingerprint check, the National Sex Offender Registry, and state criminal, sex offender and child abuse registries for each state of residence in the past five years, and states must return results within 45 days. [45 CFR 98.43]
Read the full guide to how to switch payroll providers, and the rest of the childcare center payroll library.
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Frequently Asked Questions
When is the best time for a childcare center to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What childcare center data is most often lost in a switch?
The pay code configuration for licensing-tied payroll records and subsidy payment coordination and the exemption records for lead teachers and assistant teachers. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
What does managed payroll cost for a childcare center?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Licensing-tied payroll records, subsidy payment coordination and part-time variable-hour staff are configured at setup, not billed as add-ons.
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 $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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