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Run the Payroll Fee Auditor →Blog · Payroll Management · Childcare
Childcare Centers & Preschools: Multi-Location Payroll Guide (2026)
Multi-location payroll for childcare centers means one payroll with per-location cost centers, a state account wherever a location or a remote employee sits, headcount thresholds counted across the whole company, and the childcare center rules cited here applied at every site. BEG runs childcare center payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Rules that change with a second childcare center location
Time spent attending training that the state requires for daycare center licensing is working time that must be paid. Short rest breaks of about 20 minutes or less are paid, and a meal period is unpaid only if the employee is completely relieved of duty; an employee who must watch children while eating is still working.
The teaching professional exemption covers an employee whose primary duty is teaching, tutoring, instructing or lecturing as a teacher in an educational establishment, and the regulation expressly lists teachers of kindergarten or nursery school pupils. The salary level and salary basis requirements of Part 541 do not apply to these teachers.
What is counted company-wide
OSHA recordkeeping, the ADA and Title VII, COBRA, FMLA and the ACA employer mandate all count employees across every location, so a second site can trip a threshold no single site reaches. FMLA eligibility is the exception: the 50-employee test is measured within 75 miles of the employee's own worksite. A location in a new state adds a withholding account (unless the state has no wage tax), an unemployment account, that state's minimum wage and overtime rule for lead teachers and assistant teachers, and its new hire and final pay deadlines.
How the payroll is structured
One EIN, one payroll, one set of pay codes for licensing-tied payroll records, subsidy payment coordination and part-time variable-hour staff, with location as a cost center on every employee record so labor cost, tax registrations and required postings resolve by site. Separate EINs per location are a legal-entity decision, not a payroll one, and each EIN files its own 941s and W-2s.
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.
- Time spent attending training that the state requires for daycare center licensing is working time that must be paid. Short rest breaks of about 20 minutes or less are paid, and a meal period is unpaid only if the employee is completely relieved of duty; an employee who must watch children while eating is still working. [DOL Fact Sheet #46]
- The teaching professional exemption covers an employee whose primary duty is teaching, tutoring, instructing or lecturing as a teacher in an educational establishment, and the regulation expressly lists teachers of kindergarten or nursery school pupils. The salary level and salary basis requirements of Part 541 do not apply to these teachers. [29 CFR 541.303]
Read the full guide to how to manage payroll in multiple states, and the rest of the childcare center payroll library.
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Frequently Asked Questions
Does a second childcare center location need its own payroll?
No. One payroll with location cost centers is the norm under a single EIN. A second EIN, if the entity structure requires one, files its own returns and W-2s.
Which thresholds count employees across all childcare center locations?
OSHA logs, Title VII and the ADA, COBRA, FMLA coverage and the ACA employer mandate. FMLA eligibility for an individual is measured within 75 miles of that employee's worksite.
Childcare center multi-site rule: DOL Fact Sheet #46
Time spent attending training that the state requires for daycare center licensing is working time that must be paid. Short rest breaks of about 20 minutes or less are paid, and a meal period is unpaid only if the employee is completely relieved of duty; an employee who must watch children while eating is still working.
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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