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Daycare Center and Family Home Forum>Question For Those Who Do 52 Week Payments
Sprouts 07:16 PM 08-21-2012
So for those here who get paid 52 weeks the same rate...How do you handle if a parent doesnt stay for the full year? For example,

if my regular weekly rate right now is $200 but decided to change to having parents pay 52 weeks, I will have 3 weeks vacation, so I multiply

$200 x 49= $9,800 and then divide by 52= $188.46

so it seems this way would work for families who are planning to stay for a whole year, or used under a one year contract, but what if the family signs up and then decides to leave before a vacation even happens? Wouldnt the provider be loosing money since the rate is lowered becuase its divided over the 52 weeks? Do you have something in your contract about this?

Or what if you, the provider, decides to cancel the contract and a a vacation time has passed? Would parents ask for money back?

any contract wording for this?
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Nickel 07:26 PM 08-21-2012
I thought of doing it that way. for me it was 50 weeks so I did the same thing, but I realized that although the parents aren't really paying for that time, they would rather pay the full rate throughout the year and then not pay those 2 weeks (or in your case 3). So I get the same amount all year, but I don't get anything those vacation weeks and the parents can now afford to pay for another sitter. And if I don't take the vacation, I don't have to worry about essentially working for free.

Now for parents that want to pay monthly, I take the amount and multiply it by 52 and then divide by 12 payments. If they don't stay the whole year, I just look at is as monthly payment and don't get caught up in them not paying for every single day. It just works better for me.

I'm not sure if that helped or not
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Lucy 08:26 PM 08-21-2012
I get paid for my vacations, so my multiplication would be X52. My suggestion is to consider doing it that way. Just tell people you charge $200 per week with no deductions for days not attended, whether it was their choice not to attend, or your day off. You are worth paid vacations!!!

The other way you can do it without charging them for your vacations (if you prefer to do this), is to charge $200 per week, but when you are on vacation, they don't owe you for that week. This way is kinda hard because you have zero income for a week.

So anyway, for your current situation, you are discounting by $11.54 per week, so you would "lose" 11.54 X the number of weeks they actually attended. Let's say they attend from January through April, and you did not take a vacation during that whole time. That's 17 weeks, and you would "lose" $196. How long do you normally go without a vacation though?

Basically, you are taking a risk by discounting the weekly rate like that. I really encourage you to charge full price and get paid vacations.
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Crazy8 04:23 AM 08-22-2012
this is why I don't do it that way - when families leave me it most often happens when school gets out in June or before it starts in Sept. I often take vacations in July or sometimes November/December so I'd really be screwed if I had a kid at a "discounted" rate from Jan-Sept. and then they went to school before I took my vacation. I do get 1 week paid vacation - they pay for that week just like the others, it is not discounted all year to make up for that week. Any additional time I take is unpaid and I'm ok with that. I would lose a lot of potential clients if I took 3 weeks but if its the norm for your area that is great!
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Annalee 04:45 AM 08-22-2012
My parents just pay every week the same rate whether it is an off week or not. If I am closed a wk, they post-date a check for the closed week and leave it with me the week before I close. For example, at Christmas it usually is around ten days so sometimes they have to post-date two checks because my fees are due on Monday morning for the upcoming week. When my father died a few yrs ago, I was closed a wk and my parents came by to leave their checks. This way I get a check every week. So far, this works.
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DaisyMamma 04:52 AM 08-22-2012
Originally Posted by Lucy:
I get paid for my vacations, so my multiplication would be X52. My suggestion is to consider doing it that way. Just tell people you charge $200 per week with no deductions for days not attended, whether it was their choice not to attend, or your day off. You are worth paid vacations!!!

The other way you can do it without charging them for your vacations (if you prefer to do this), is to charge $200 per week, but when you are on vacation, they don't owe you for that week. This way is kinda hard because you have zero income for a week.

So anyway, for your current situation, you are discounting by $11.54 per week, so you would "lose" 11.54 X the number of weeks they actually attended. Let's say they attend from January through April, and you did not take a vacation during that whole time. That's 17 weeks, and you would "lose" $196. How long do you normally go without a vacation though?

Basically, you are taking a risk by discounting the weekly rate like that. I really encourage you to charge full price and get paid vacations.
I agree with this. I take one week vacation right now and it is paid. 3 weeks might be a lot to ask for as paid time, but if other providers in your area do it, then you should do the same.
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Unregistered 10:30 AM 08-22-2012
I do not deduct my pay for vacation. I get 10 paid days plus holidays and that is on the contract. So they pay the same rate all year. Kids come and go and I am going to get paid based on the number of kids I have at the time of vacation or holiday time.

So I start my vacation clock November 1st-October 31st. So I keep track of the days I have left etc. So I take them when I want and they pay a normal rate. No deductions it's like it really doesn't change anything.

Hope that makes sense. For new kids I will tell them when they start that I have so many left for the vacation year. That way they know I will be taking off so many days between now and then so they can budget backup care.
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Sprouts 08:44 PM 08-22-2012
i guess i have to see what other providers do around here....

any tips on getting information over the phone with out seeming suspicous??
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Tags:52 weeks payment schedules, payment options
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