It’s quite likely that at least some staff members at your child care, daycare or preschool have young children of their own. In fact children of employees may already be enrolled at your center. Perhaps you even offer them a discount on their child care tuition because they are on staff. But how do you track it? Can you deduct it directly from their payroll checks? Is it necessary to record daycare fees separately for the child?
Well, that’s what we’re going to answer with today’s blog post. The short answers are “Yes” the amount for child care may be deducted from paychecks and “Yes” you may also record the fees separately for the child.
Withhold Child Care Fees from Payroll
Using the Daycare Payroll module from Procare Software® it’s easy to set up a withholding for employee child care. You’ll go to the Functions menu, choose Program Configuration and create a new General Withholding. You’ll assign the withholding to a revenue account like GL # 4000.00 Tuition Charges. See a Show Me Video (no sound) >>
Track Fees for the Child
In most cases you’ll also want to track fees for the child in the Family Accounting module. Let’s say you offered half off the normal rates for employees. You’d set up 3 lines in the Family Billing Box: one to charge the full rate, a second to show the discount, and a third to show the payroll deduction. See a Show Me Video (no sound) >>
More Info on Employee Child Care
A full description of these procedures is available. See Frequently Asked Questions >>
Here’s wishing you continued success with you child care business and until next time, cheers!
-Phil
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If you have questions or comments about this article (or suggestions for another article) I’d be pleased to hear from you. Drop me at note at phil@procaresoftware.com.
