Loads And Loads Of Payment Questions - TELL ME ALL ABOUT HOW YOU HANDLE THESE THINGS

[blandino]

We really don't have a problem with late payments, occasionally a parent forgets until pickup (payments due monday morning). But the past two weeks, late payments are rampant. I have even had to charge my first late fees ever.

Not just due to this, but just to simplify things - I want to revamp payment procedures.

Right now, if payment isn't received by Monday morning we send out a reminder e-mail, that says payment needs to be received by Monday at 5:30.
This usually does the trick, and keep everything together.

How does everyone else handle forgotten payments ? Payment due dates ? reminders ? I want to hear it all !!!

Thinking of implementing a Friday pay day, with a no pay - no stay policy on Monday morning.

Also, I was thinking about standardizing pay days. Right now we have 13 families, who all pay us weekly/biweekly/ or monthly - their own choice. Depending on when they started, the weeks aren't the same for everyone. Part of me wants to switch everyone to biweekly payments, and have every family pay on the same day every other week. For us, that would simplify bank trips, and simplify and standardize our income. (Right now income is predictable, but very uneven from week to week), and will also make it easier for us to keep track of payments - very simply EVERYONE will owe us a check on said paydays. Or we were thinking of having everyone pay weekly, that way there are no forgotten checks, because you can never be "off" on whether or not you paid last week - every week you will need to bring a check. Does anyone do this?

Do you think this is too overbearing ? We are very lucky to have great paying families, who give us very little trouble. But it would be nice to fix some of these kinks...

[Unregistered]

I just changed from having parents pay weekly or bi monthly to having everyone pay me 1x a month with payments due on the first of the month for that months care. It has actually worked out really well for all parties involved. Before I was always having to remind families every week for that weeks payments and because I have several kids who only come 2-3x a week sometimes I wouldn't revieve payments until the end of the week. I do let parents who I know can not make 1 monthly payment stil pay weekly. But it's soo nice to just have that one time a month payment.

[cheerfuldom]

I think your system is way out of hand. Forget about what the parents are currently doing or even what they want.....what works for YOU? With 13 families. you need to get everyone on the same system immediately.

I would recommend paying by the week, every Monday they bring that weeks payment with a no pay, no stay rule. They hand you the payment as they arrive and you let the kids in. Dont just take the bags and have to dig for it or find out after parents have gone, that they forgot. The no pay, no play rule makes late fees unnecessary. The HAVE to pay each Monday or do not receive care.

If you have a holiday that falls on a Monday, you have to decide if you will then require payment on the preceding Friday or if Tuesday morning is sufficient

You really shouldnt be having to do any reminders or chasing after your payment. I think streamlining your system will solve all the issues.

[LK5kids]

I think your system is way out of hand. Forget about what the parents are currently doing or even what they want.....what works for YOU? With 13 families. you need to get everyone on the same system immediately.

I would recommend paying by the week, every Monday they bring that weeks payment with a no pay, no stay rule. They hand you the payment as they arrive and you let the kids in. Dont just take the bags and have to dig for it or find out after parents have gone, that they forgot. The no pay, no play rule makes late fees unnecessary. The HAVE to pay each Monday or do not receive care.

If you have a holiday that falls on a Monday, you have to decide if you will then require payment on the preceding Friday or if Tuesday morning is sufficient

You really shouldnt be having to do any reminders or chasing after your payment. I think streamlining your system will solve all the issues.

Agree, agree, agree!

[Meyou]

I charge by the week due on Friday(or the last day attended) for the next week of care. If they are away when payment is due they have to pay before they leave. If they don't pay, they don't stay on Monday.

I also added 3 years ago that I do not receive payments outside of business hours. This stops the "I'll just grab Johnny and run to the bank machine and be right back with your money." That's usually a 20-30 minute trip that I'm not waiting for on Friday
nights.

If they want to pay biweekly, they can...in advance every 2nd Friday.

[shelby]

Forget about what the parents are currently doing or even what they want.....what works for YOU? With 13 families. you need to get everyone on the same system immediately.

Putting them on one payment system, will save you tons of headaches!

[Crazy8]

I let my parents choose weekly or bi-weekly, but I only have 5 to deal with - would never work for me for 13 families!! I don't like to get too far ahead like monthly payments in the event I have to credit them for anything (like the hurricane, etc.).

I require payment by 5pm on Friday - this way if its not in Friday morning I can send a reminder for Friday at pick up and its still not late. If they walk in Friday afternoon without payment the late fees start accruing! They can drop in my mailbox over the weekend (w/late fee) but if they dare show up Monday morning without it they are turned away at the door. Never had it get that far - always get the Saturday morning in the mailbox at the latest!

[JenNJ]

Payday is Friday for the upcoming week. If checks are not received Friday, they incur a $10 late fee per day. If not paid by Monday, they are not allowed in care and they have 24 hours to make payment or I terminate the contract.

Pretty simple. Pay or no daycare. I make one bank trip a week.

[MarinaVanessa]

I charge a flat weekly rate based on the hours that a family needs childcare. In essence the more hours per week you need, the less per hour you pay.
50 hours per week pays $160/wk ($3.20/hr) Full-time
30 hours per week pays $108/wk ($3.70/hr) Part-time
one day pays $40 ($4.00/hr) Daily drop-in rate
hourly pays $5.00/hr

All clients are "no pay-no stay". Payments for full and part-time clients are on Fridays by 6pm. After that is late and late fee is added. If full payment not received by the childs next drop-off the child cannot stay and this includes late fees. If a check bounces I have a $35 fee AND the payment is late and no more checks accepted from this family. One bounced check deposited on Friday means that by Monday they have to pay $55 on top of their weekly rate. I don't send out reminders, they all know when my payday is. My rate is based on enrollment not attendance and each family has a contract with their scheduled hours so if they miss days for any reason including vacations there is no discount given. Late arrivals don't allow for late pickups so if they are late 2 hours that doesn't mean that they can pick up 2 hours later, they still have to pick up at the same time.

[littlemissmuffet]

We really don't have a problem with late payments, occasionally a parent forgets until pickup (payments due monday morning). But the past two weeks, late payments are rampant. I have even had to charge my first late fees ever.

Not just due to this, but just to simplify things - I want to revamp payment procedures.

Right now, if payment isn't received by Monday morning we send out a reminder e-mail, that says payment needs to be received by Monday at 5:30.
This usually does the trick, and keep everything together.

How does everyone else handle forgotten payments ? Payment due dates ? reminders ? I want to hear it all !!!

Thinking of implementing a Friday pay day, with a no pay - no stay policy on Monday morning.

Also, I was thinking about standardizing pay days. Right now we have 13 families, who all pay us weekly/biweekly/ or monthly - their own choice. Depending on when they started, the weeks aren't the same for everyone. Part of me wants to switch everyone to biweekly payments, and have every family pay on the same day every other week. For us, that would simplify bank trips, and simplify and standardize our income. (Right now income is predictable, but very uneven from week to week), and will also make it easier for us to keep track of payments - very simply EVERYONE will owe us a check on said paydays. Or we were thinking of having everyone pay weekly, that way there are no forgotten checks, because you can never be "off" on whether or not you paid last week - every week you will need to bring a check. Does anyone do this?

Do you think this is too overbearing ? We are very lucky to have great paying families, who give us very little trouble. But it would be nice to fix some of these kinks...

It is the norm in my area to charge per month. So all fees are due on the 1st of each month (pay in advance only). Payments are due by 5pm - if not recieved by 5pm there is a $25 late fee. If it's not brought by the next morning there is no care, plus another $25 late fee. Third day will result in termination (and will be taken to court for the monthly fee plus $75 late fees, plus attorny fees and a fee to cover any time missed from work). I don't mess around with payment.

If the 1st of the month falls on a weekend, holiday or during my vacation payment is due the last open business day prior to the weekend/holiday/vacation. If a child is absent for any reason, payment is still due on the 1st of the month.

I only accept cash as form of payment.

I charge a flat monthly payment regardless of age, attendance, etc. I accept PT, but I charge the same FT montly rate everyone else is charged.

I do not provide families with free or discounted vacation time or sick time.

I recieve 10 paid holiday days, 10 paid vacation days and 5 personal/sick days each year.

I make the exact same income 12 months a year.