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Run the Payroll Fee Auditor →Blog · Payroll Management · Childcare
Childcare Centers & Preschools: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for childcare centers starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: 45 CFR 98.43 and 29 CFR Part 1904, Subpart B, Appendix A. 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.
Records specific to childcare centers
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.
Child Day Care Services (NAICS 6244) is on OSHA's list of partially exempt industries, so establishments in that code do not have to keep OSHA injury and illness logs unless asked in writing by OSHA, BLS or a state agency. Fatalities, in-patient hospitalizations, amputations and eye losses must still be reported.
The federal baseline every employer keeps
29 CFR 516 requires payroll records for three years and the records they were computed from, time cards, schedules and piece or commission records, for two years. Employment tax records stay four years after the return they support. Forms I-9 stay three years from hire or one year from separation, whichever is later. For childcare centers the practical rule is that the pay codes for licensing-tied payroll records and subsidy payment coordination produce records of their own, and an audit reads those, not the summary.
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]
- Child Day Care Services (NAICS 6244) is on OSHA's list of partially exempt industries, so establishments in that code do not have to keep OSHA injury and illness logs unless asked in writing by OSHA, BLS or a state agency. Fatalities, in-patient hospitalizations, amputations and eye losses must still be reported. [29 CFR Part 1904, Subpart B, Appendix A]
Read the full guide to how to prepare for a payroll audit, and the rest of the childcare center payroll library.
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Frequently Asked Questions
Childcare center records: 45 CFR 98.43
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.
Childcare center records: 29 CFR Part 1904, Subpart B, Appendix A
Child Day Care Services (NAICS 6244) is on OSHA's list of partially exempt industries, so establishments in that code do not have to keep OSHA injury and illness logs unless asked in writing by OSHA, BLS or a state agency. Fatalities, in-patient hospitalizations, amputations and eye losses must still be reported.
How long does a childcare center keep payroll records?
Three years for payroll records and two for supporting time records under the FLSA, four years for employment tax records under the IRS rule, and longer where an industry rule cited above says so.
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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