Substitute Provider Fees???

[Zeke]

I am wondering how others pay their subs? I have my oldest daughter sub for me and this past month I had to have 3 weeks off due to another of my daughters having to be out of town to have a baby I went with her, thinking I would be gone 2 weeks but it ended up exactly 3.

I have been breaking it down to the amount parents paid for the full month... I break it down to how much it comes to per day, per child- then pay her the amount for all the days she had them. I also was taking 20% because I am footing the entire bill for food, utilities.. EVERYTHING. She comes to my home.

What % is the correct amount to keep for business costs? Should I only be doing 10%???

Thank you for any thoughts or advice!

[Play Care]

I pay my sub an hourly wage, anywhere from $10-$12 per hour, regardless of the kids here, etc. But I also can't use them that much per regs.
I'm not related to my subs and I've found if I want great help I need to pay well.

When I was nickel and diming it I was getting SAHM's who thought they could sit and read magazines while the kids bounced off the walls
Probably not your issue as it's your own child::

[LysesKids]

My understanding is a sub has to be paid at least minimum wage for every hour worked. (and including OT). If she worked your business for you while you were gone she was technically an employee that falls under federal law

[DaveA]

I pay my sub $10/ hour when she comes in.

If my wife subs for me the payment runs a touch more expensive: usually involves flowers, bringing dinner home, wine, and a massage.::::

[midaycare]

If I'm gone for a vacation or extended amount of time, I give my sub all the profits. It's a very hard job and I want her to continue helping out. But since I work 11 hours a day and charge $32 per day currently, although some pay less, due to when they signed contracts, it ends up coming close to $15-$16 an hour. So not that far off from $10-$12.

[Play Care]

My understanding is a sub has to be paid at least minimum wage for every hour worked. (and including OT). If she worked your business for you while you were gone she was technically an employee that falls under federal law

My sub comes in a few hours a day each week - maybe. She also contracts with other day cares in the area. I *ask* her to work and she lets me know if she can...

But if you have someone covering FT for 3 weeks, that probably falls under employer/employee relationship and at least min. wage is expected.

[Controlled Chaos]

I live in a cheap state. I pay $9 an hour. I would happily pay someone $10, but current assistant was worth only $9 Partly because I paid her to get CPR, First Aid, food handlers etc. and that cost me quite a bit.

[Unregistered]

Thanks so much! (more)

I don't charge the parents per hour... $42/$28 for a FT/PT infant, $41/$28 Toddler and $35/$25 Pre-school (if on daily attendance rate) otherwise a flat FT monthly fee is used.... the total made in this time was about $2,160 so if I ended up keeping 10% for overhead (utilities, wear tear, FOOD- milk is over $7 per gallon here etc.).

I think having FAMILY sometimes, is much harder! I am VERY conscious of her getting ENOUGH... but also KNOW I have to cover food etc. This REALLY stunk as I thought we would be gone 2 weeks and would still get a LITTLE out of my monthly income (left the 14th) but shoot... ended up being 3 full weeks so I have very little income for July... then one family (with 2 in care) took off 10 days for a gma visit... which is going to STOP as of Sept 1. It's going to be a pay to hold the spot- or move on This family is OFF 3 full months in winter as well as at least 3 to 4 2 week vacas in the 9 mos they are here with me. I have a wait list and can surely USE that income

Thanks so much for your help here!!!

[LysesKids]

I don't charge the parents per hour... $42/$28 for a FT/PT infant, $41/$28 Toddler and $35/$25 Pre-school (if on daily attendance rate) otherwise a flat FT monthly fee is used.... the total made in this time was about $2,160 so if I ended up keeping 10% for overhead (utilities, wear tear, FOOD- milk is over $7 per gallon here etc.).

I think having FAMILY sometimes, is much harder! I am VERY conscious of her getting ENOUGH... but also KNOW I have to cover food etc. This REALLY stunk as I thought we would be gone 2 weeks and would still get a LITTLE out of my monthly income (left the 14th) but shoot... ended up being 3 full weeks so I have very little income for July... then one family (with 2 in care) took off 10 days for a gma visit... which is going to STOP as of Sept 1. It's going to be a pay to hold the spot- or move on This family is OFF 3 full months in winter as well as at least 3 to 4 2 week vacas in the 9 mos they are here with me. I have a wait list and can surely USE that income

Thanks so much for your help here!!!

You may not charge by hour, but legally you have to pay any help by the hour -you will probably have to take out required taxes also... I mean family or not, it was an employer/employee situation if you look at the labor laws. I actually paid my DD more than I made one week (before she moved out), but it can be claimed on your taxes because you paid wages - I assume she is claiming the $$ as income too on her taxes

[Zeke]

LOL I have been in the business over 30 years so yes, I absolutely do everything by the law. I DEFINITELY pay over our states minimum wage, as well and I provide the appropriate forms at tax time.. she pays taxes on the income she gets from subbing. She was accepted by my state as a legal substitute provider, and everything has been done appropriate to the laws..... I was just wondering if I am paying her ENOUGH. I thought someone might know if there is a % formula that is used for subs or how they do it, as I have NEVER HAD a sub until I hired her a year ago- this was her longest stint at it... I don't want to pay her to little, but am also aware that I have to pay for all the food etc

You may not charge by hour, but legally you have to pay any help by the hour -you will probably have to take out required taxes also... I mean family or not, it was an employer/employee situation if you look at the labor laws. I actually paid my DD more than I made one week (before she moved out), but it can be claimed on your taxes because you paid wages - I assume she is claiming the $$ as income too on her taxes

[LysesKids]

LOL I have been in the business over 30 years so yes, I absolutely do everything by the law. I DEFINITELY pay over our states minimum wage, as well and I provide the appropriate forms at tax time.. she pays taxes on the income she gets from subbing. She was accepted by my state as a legal substitute provider, and everything has been done appropriate to the laws..... I was just wondering if I am paying her ENOUGH. I thought someone might know if there is a % formula that is used for subs or how they do it, as I have NEVER HAD a sub until I hired her a year ago- this was her longest stint at it... I don't want to pay her to little, but am also aware that I have to pay for all the food etc

The food part should have nothing to do with this equation or pay; you can't do a % for this situation just because you have to buy stuff... you may end up in the negative for one month, it happens. Last February I lost all my fridge/freezer food & a weeks pay due to those bad ice storms plus I had to pay for a hotel because my house only registered 18 degrees when it was -20 out (no power). Insurance didn't cover it & I am a single with no other income - life isn't always fair, but you deal with it & go on

[kitykids3]

I've never heard of a % way of figuring it out. I just pay my substitutes an hourly wage, about $10 an hour.

[Gemma]

I pay my sub $10/ hour when she comes in.

If my wife subs for me the payment runs a touch more expensive: usually involves flowers, bringing dinner home, wine, and a massage.::::

::::::

[Blackcat31]

LOL I have been in the business over 30 years so yes, I absolutely do everything by the law. I DEFINITELY pay over our states minimum wage, as well and I provide the appropriate forms at tax time.. she pays taxes on the income she gets from subbing. She was accepted by my state as a legal substitute provider, and everything has been done appropriate to the laws..... I was just wondering if I am paying her ENOUGH. I thought someone might know if there is a % formula that is used for subs or how they do it, as I have NEVER HAD a sub until I hired her a year ago- this was her longest stint at it... I don't want to pay her to little, but am also aware that I have to pay for all the food etc

Are you giving a 1099 or are you with holding taxes/social security from her paychecks?

if you have child care centers nearby, I'd see if I could find out what they are paying their staff and use that as a base starting point.

[MyAngels]

I think what I would do in your situation is first figure out what my actual net income is on average for a week, being sure to include all operating costs, not just food, but utilities and the like as well. Don't forget your employer's portion of employment taxes. Once I had that figure I would divide that by the hours worked to see what was available to pay out as an hourly wage. No sense going into the hole if you don't have to. If the net amount available amounts to less than $10-12 per hour you'll have to consider supplementing to that amount and taking a loss. If not, then you can determine how much your DD's time is worth.

If it was me paying my DD for three full weeks at a time I would probably just pay her the full amount of profit for the time in question, assuming it was enough to make it worth her while. If not, I'd supplement out of my own pocket and take the loss.