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"R.E.L. Kids Learning thru Real Play!" ©

“You can discover more about a person in an hour of play than in a year of conversation.”- Plato

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Where Your Money Goes when paying for preschool

Posted on August 29, 2012 at 2:20 PM

Your fee pays for:

  1. Our income
  2. 17 % Federal tax
  3. 10.1 % State
  4. City and Polk County Public School taxes
  5. 7.65% Social Security tax
  6. Liability child care insurance
  7. Certification fees
  8. Annual occupational license
  9. Annual incorporation fees
  10. Repairs
  11. Bills
  12. Background checks
  13. Training
  14. Food
  15. Toys
  16. Equipment
  17. Printing supplies
  18. Advertisement
  19. Cleaning supplies
  20. And much more.

Like other self-employed workers, Family Home Preschool providers do not receive the benefits many employees take for granted. These include:

 

  • Health and dental insurance
  • Life insurance
  • Retirement and pension plans
  • Workers compensation
  • Regular paid vacations
  • Flexible time off
  • And unemployment insurance.

These benefits often amount to as much as 35% of an employee's wages. Unlike other forms of self-employment Family Child Care is very restrictive. There is no room for growth. The state dictates the size of my business (max 6 children). Most people have a 40 hour work week. My week is 12/16 hours a day, 60-80 hours and up and that does not include our training, bookkeeping, paperwork, etc. A national survey found that regulated family childcare providers reported gross earnings of approx $15,000 per year ($4.81/hr).

 

I hope this gives you a better picture of the true cost of child care.

~ Rainbow Early Learning, Inc. - a Bilingual Family Home Preschool and Aftercare

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