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Childcare Centers & Preschools: Year-End Payroll Checklist (2026)
Year-end payroll for childcare centers is W-2s and any 1099-NEC to employees and contractors by January 31, the fourth-quarter 941 and annual 940, and the childcare center items that decide which boxes are right: IRS About Form W-10, IRS Exempt organizations. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Childcare center items that shape the W-2 and 1099s
Parents who claim the child and dependent care credit or receive benefits under an employer dependent care plan use Form W-10 to obtain the care provider's correct name, address and taxpayer identification number, so a center must be able to furnish its TIN to families.
A childcare organization exempt from income tax under section 501(c)(3) is also exempt from federal unemployment tax (FUTA), and that exemption cannot be waived. An organization that is not a 501(c)(3) must pay FUTA and report it on Form 940.
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 January calendar
W-2s and W-3 to the SSA and copies to employees by January 31; 1099-NEC for each contractor paid $2,000 or more in the year, the threshold for tax years after 2025, by the same date; Form 940 and the fourth-quarter 941 by January 31 as well, with a 10-day extension where all deposits were on time. Ten or more information returns of any kind, counted together, must be filed electronically. For childcare centers the reconciliation that matters is that the pay codes for licensing-tied payroll records, subsidy payment coordination and part-time variable-hour staff landed in the right W-2 boxes for every employee.
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.
- Parents who claim the child and dependent care credit or receive benefits under an employer dependent care plan use Form W-10 to obtain the care provider's correct name, address and taxpayer identification number, so a center must be able to furnish its TIN to families. [IRS About Form W-10]
- A childcare organization exempt from income tax under section 501(c)(3) is also exempt from federal unemployment tax (FUTA), and that exemption cannot be waived. An organization that is not a 501(c)(3) must pay FUTA and report it on Form 940. [IRS Exempt organizations: What are employment taxes?]
- 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 how to handle year-end payroll and W-2s, and the rest of the childcare center payroll library.
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Frequently Asked Questions
Year-end for childcare centers: IRS About Form W-10
Parents who claim the child and dependent care credit or receive benefits under an employer dependent care plan use Form W-10 to obtain the care provider's correct name, address and taxpayer identification number, so a center must be able to furnish its TIN to families.
Year-end for childcare centers: IRS Exempt organizations: What are employment taxes?
A childcare organization exempt from income tax under section 501(c)(3) is also exempt from federal unemployment tax (FUTA), and that exemption cannot be waived. An organization that is not a 501(c)(3) must pay FUTA and report it on Form 940.
When are W-2s and 1099s due for a childcare center?
January 31 for both, to the recipient and to the SSA or IRS. The 1099-NEC threshold is $2,000 for tax years after 2025, and 10 or more information returns of any type must be e-filed.
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: IRS: Understanding Employment Taxes
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