Daycare.com Forum Daycare Forum

Go Back   Daycare.com Forum > Main Category > Daycare Center and Family Home Forum

Daycare Center and Family Home Forum Daycare Center and Family Home owners, Directors, Operators and Assistants should post and ask questions here.

Reply
 
Thread Tools Display Modes
  #1  
Old 11-29-2015, 04:25 PM
dleythebest's Avatar
dleythebest dleythebest is offline
Daycare.com Member
 
Join Date: Nov 2015
Location: Michigan
Posts: 4
Smile Home Daycare

I am looking into starting a Group child daycare home (12 children) or Family child daycare home (6 children) in my basement. I know all of the requirements regarding licensing. Although taxes, employee taxes, payroll taxes, unemployment etc. are a little cloudy for me.

If I have 1 employee for a family child care daycare child care home and or 2 employee for a group daycare home all part time, I would no offer benefits of any sort...what do I need to pay into the IRS? Do I need to pay unemployment, workmen's comp etc.? What % should I expect to take out of my income to cover all additional expenses? I am worried I am not looking at all areas to remain legal.

I also need insurance advice!

Thanks in advance!
Reply With Quote
  #2  
Old 11-29-2015, 05:12 PM
midaycare's Avatar
midaycare midaycare is offline
Daycare.com Member
 
Join Date: Jan 2014
Location: Midwest
Posts: 5,659
Default

Quote:
Originally Posted by dleythebest View Post
I am looking into starting a Group child daycare home (12 children) or Family child daycare home (6 children) in my basement. I know all of the requirements regarding licensing. Although taxes, employee taxes, payroll taxes, unemployment etc. are a little cloudy for me.

If I have 1 employee for a family child care daycare child care home and or 2 employee for a group daycare home all part time, I would no offer benefits of any sort...what do I need to pay into the IRS? Do I need to pay unemployment, workmen's comp etc.? What % should I expect to take out of my income to cover all additional expenses? I am worried I am not looking at all areas to remain legal.

I also need insurance advice!

Thanks in advance!
Please, please see an accountant. I messed up so bad my first year with taxes I had to pay $2500 for an accountant to fix it. And I know taxes really well!
Reply With Quote
  #3  
Old 11-29-2015, 05:33 PM
spedmommy4's Avatar
spedmommy4 spedmommy4 is offline
Daycare.com Member
 
Join Date: Mar 2015
Location: Northern Oregon
Posts: 933
Default

Yes you need to pay taxes and workman's comp for your employees. You will also have to get a tax ID number with the state and federal government.

The previous poster is right though, if you aren't sure what you are doing, hire an accountant. It is so complicated. Personally, I use a payroll service through my bank for my employees and an accountant for my personal taxes. It keeps me legal with the IRS and state tax board.

As for insurance, I use DCI. My state doesn't require me to carry insurance but, in my opinion, it is risky not to. Your childcare insurance options are going to vary based on where you are located.
Reply With Quote
  #4  
Old 11-29-2015, 05:45 PM
Controlled Chaos's Avatar
Controlled Chaos Controlled Chaos is offline
Daycare.com Member
 
Join Date: Jun 2014
Posts: 2,131
Default

I have an assistant 1 day a week. I hired an accountant for $1000 a year including income tax, pays quarterly taxes, set up my LLC, and files my personal and professional taxes. Sooooo worth it! Hire someone!
Reply With Quote
  #5  
Old 11-29-2015, 06:24 PM
dleythebest's Avatar
dleythebest dleythebest is offline
Daycare.com Member
 
Join Date: Nov 2015
Location: Michigan
Posts: 4
Default Home daycare

Do I need an LLC for a home daycare for 12 children? And a tax ID?

I am assuming I wouldn't need to pay in workmen's comp if I am the only employee (for 6 kids).
Reply With Quote
  #6  
Old 11-29-2015, 06:37 PM
Controlled Chaos's Avatar
Controlled Chaos Controlled Chaos is offline
Daycare.com Member
 
Join Date: Jun 2014
Posts: 2,131
Default

Quote:
Originally Posted by dleythebest View Post
Do I need an LLC for a home daycare for 12 children? And a tax ID?

I am assuming I wouldn't need to pay in workmen's comp if I am the only employee (for 6 kids).
You don't need an LLC, my accountant and I decided that was best for my particular situation. You can also be a sole proprietor business.
Reply With Quote
  #7  
Old 11-30-2015, 02:26 AM
spedmommy4's Avatar
spedmommy4 spedmommy4 is offline
Daycare.com Member
 
Join Date: Mar 2015
Location: Northern Oregon
Posts: 933
Default

Quote:
Originally Posted by dleythebest View Post
Do I need an LLC for a home daycare for 12 children? And a tax ID?

I am assuming I wouldn't need to pay in workmen's comp if I am the only employee (for 6 kids).
No, you do not need to pay workmans comp on yourself. It's only if you hire someone.
Reply With Quote
  #8  
Old 11-30-2015, 04:16 AM
DaveA's Avatar
DaveA DaveA is offline
Daycare.com Member and Bladesmith
 
Join Date: Jul 2014
Location: Illinois
Posts: 4,204
Default

+1 on checking with a local accountant. Tax screw ups can get expensive fast. Also if you live in an area with an HOA, check with it beforehand. That can be a mess if you've already opened up and they come knocking.
Reply With Quote
  #9  
Old 11-30-2015, 07:14 AM
284878's Avatar
284878 284878 is online now
Day Care Owner
 
Join Date: Oct 2013
Location: Next door
Posts: 2,171
Default

Quote:
Originally Posted by dleythebest View Post
I am looking into starting a Group child daycare home (12 children) or Family child daycare home (6 children) in my basement. I know all of the requirements regarding licensing. Although taxes, employee taxes, payroll taxes, unemployment etc. are a little cloudy for me.

If I have 1 employee for a family child care daycare child care home and or 2 employee for a group daycare home all part time, I would no offer benefits of any sort...what do I need to pay into the IRS? Do I need to pay unemployment, workmen's comp etc.? What % should I expect to take out of my income to cover all additional expenses? I am worried I am not looking at all areas to remain legal.

I also need insurance advice!

Thanks in advance!
What state are you in?

I use farm bureau for insurance.
LLC is not needed. A dba is only $10 and has some advantages.
Personally, I would start small and increase # number of kids as you grow.
Reply With Quote
  #10  
Old 12-01-2015, 04:14 PM
dleythebest's Avatar
dleythebest dleythebest is offline
Daycare.com Member
 
Join Date: Nov 2015
Location: Michigan
Posts: 4
Default

I live in MI.

What should I expect to take out of my income for taxes, workmen's comp, unemployment, employee wage? I was thinking 30%.
Reply With Quote
Reply

Tags
family daycare, group child home day care, payroll taxes, unemployment insurance

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
List Of Paperwork In A Home Daycare Filing Cabinet Clara Daycare Center and Family Home Forum 17 04-18-2017 09:25 AM
Newb to home daycare needs advice on wording. C'est la vie. Daycare Center and Family Home Forum 2 08-20-2014 08:34 AM
What Is The Standard For Home Daycare Closing? Unregistered Parents and Guardians Forum 24 05-16-2014 08:03 PM
Home Daycare New Jersey Unregistered Daycare Center and Family Home Forum 0 04-18-2014 07:48 PM
Home Daycare Software Katie Daycare Center and Family Home Forum 1 02-17-2009 01:25 PM


All times are GMT -7. The time now is 04:03 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming