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Daycare and Taxes>Rate Changes
Reimel61 03:40 PM 07-10-2018
Need some advice. Been in daycare for going on 16 years. Over the years I have gradually increased my rates. When I first started doing daycare my rates were pretty low for the area. Last year I started with a family and charged still what I would consider low for an infant slot (about $20 below the average) but still the highest I ever charged for an infant. Now Iím having a hard time filling my current openings and am considering lowering my rates. Is it legal to be charging one family one rate and another family a different rate? I know on occasion Iíve given sibling discount and that could explain the different rates charge to different families. Would I have to reduce every oneís rate? Thanks
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hwichlaz 04:54 PM 07-10-2018
Originally Posted by Reimel61:
Need some advice. Been in daycare for going on 16 years. Over the years I have gradually increased my rates. When I first started doing daycare my rates were pretty low for the area. Last year I started with a family and charged still what I would consider low for an infant slot (about $20 below the average) but still the highest I ever charged for an infant. Now Iím having a hard time filling my current openings and am considering lowering my rates. Is it legal to be charging one family one rate and another family a different rate? I know on occasion Iíve given sibling discount and that could explain the different rates charge to different families. Would I have to reduce every oneís rate? Thanks
Contracts are private. The only way you could get in trouble is if you accept subsidy and there is a clause in your subsidy contract requiring you charge everyone the same.
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Blackcat31 05:02 PM 07-10-2018
My contract/policies state “Rates are different for each family as each contract and agreement for services is tailored to fit each individual family’s needs.”

My budget has different needs at different times so if I have a space to fill, I do it in whatever way meets that needs.
We all do.
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TomCopeland 09:10 AM 07-12-2018
Originally Posted by Reimel61:
Need some advice. Been in daycare for going on 16 years. Over the years I have gradually increased my rates. When I first started doing daycare my rates were pretty low for the area. Last year I started with a family and charged still what I would consider low for an infant slot (about $20 below the average) but still the highest I ever charged for an infant. Now Iím having a hard time filling my current openings and am considering lowering my rates. Is it legal to be charging one family one rate and another family a different rate? I know on occasion Iíve given sibling discount and that could explain the different rates charge to different families. Would I have to reduce every oneís rate? Thanks
You can charge different rates to different parents as long as it's not based on race, sex, religion, ethnic background, national origin or disability. I would not lower your rates. Instead, you can offer short term discounts (1-3 months).
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Tags:discounts, rate changes, tom copeland
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