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Childcare Centers & Preschools: Managing Part-Time Worker Payroll (2026)
Part-time payroll in childcare centers carries the same withholding and overtime rules as full-time, and part-time hours count toward the ACA employer mandate at 120 hours a month per full-time equivalent. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Rules that matter for part-time childcare center staff
Since the 1972 FLSA amendments, preschools and daycare centers are covered enterprises regardless of annual dollar volume and whether public, private, for profit or nonprofit. Every nonexempt employee must be paid at least $7.25 per hour for all hours worked and overtime after 40 hours in each workweek, not after 80 hours in two weeks.
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.
An employer that had at least 50 full-time employees, including full-time equivalent employees, on average during the prior year is an applicable large employer for the current calendar year and is subject to the ACA employer shared responsibility and information reporting provisions.
The arithmetic
Overtime is owed after 40 hours in the workweek regardless of part-time status, and a part-time employee who picks up shifts across two roles has their regular rate blended across both. For the ACA, monthly hours of all non-full-time employees are pooled and divided by 120 to produce full-time equivalents; 60 part-time employees at 60 hours a month are 30 FTEs. For FMLA, a part-time employee counts as one employee toward the 50 threshold and is eligible personally only after 1,250 hours in the prior 12 months. At the BLS May 2025 national median for childcare workers, $34,980 a year or about $17 an hour, a 20-hour week is $336 before tax.
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.
- Since the 1972 FLSA amendments, preschools and daycare centers are covered enterprises regardless of annual dollar volume and whether public, private, for profit or nonprofit. Every nonexempt employee must be paid at least $7.25 per hour for all hours worked and overtime after 40 hours in each workweek, not after 80 hours in two weeks. [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. [DOL Fact Sheet #46]
- An employer that had at least 50 full-time employees, including full-time equivalent employees, on average during the prior year is an applicable large employer for the current calendar year and is subject to the ACA employer shared responsibility and information reporting provisions. [IRS Determining if an employer is an applicable large employer]
Read the full guide to ACA reporting and the employer mandate, and the rest of the childcare center payroll library.
Managed Payroll, Handled.
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Frequently Asked Questions
Do part-time lead teachers at a childcare center count toward the ACA 50-employee test?
Yes, as full-time equivalents: their monthly hours are pooled and divided by 120. That is why the count is run from payroll hours every year rather than from headcount.
Is overtime owed to a part-time childcare center employee?
Yes, after 40 hours in a workweek, at time and one half on the regular rate. Part-time status changes benefits eligibility, not the overtime rule. Since the 1972 FLSA amendments, preschools and daycare centers are covered enterprises regardless of annual dollar volume and whether public, private, for profit or nonprofit.
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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