HEAD START PAYROLL · EARLY CHILDHOOD PROGRAMS

Payroll is most of your grant. WageTime splits it to the cap and the match.

A Head Start grantee runs payroll under a 15 percent admin cap, a 20 percent non-federal match, and funding braided at the classroom. WageTime codes each salary to those rules as it is paid, and keeps the CDA clock on the record.

Built on infrastructure processing $35B+ in payroll & taxes · 2.8M+ employees paid

WageTime is an independent payroll provider, not affiliated with or endorsed by the Office of Head Start, the Administration for Children and Families, or HHS. Program names are used only to describe the funding a grantee administers.

SOUND FAMILIAR?

A grant director watching payroll against a cap, a match, and a credential list.

The Office of Head Start funds roughly 1,700 grant recipients to serve about 715,873 children, and those programs employ near 250,000 staff (Office of Head Start, FY2024). Behind each grantee is a small fiscal office running some of the most rule-bound payroll in the sector: labor held under a 15 percent administrative cap, a 20 percent match to document, streams that braid at the classroom, and a roster of teachers whose credentials gate the job.

THE 15 PERCENT LINE

Administrative labor has a ceiling

Head Start caps development and administrative cost at 15 percent of total program cost, and payroll is most of it. When a director's, a fiscal manager's, or a coordinator's salary is not split between program work and administration as it is paid, the year-end true-up becomes a scramble, and a disallowance can land for the amount over the line.

FUNDING IN LAYERS

One teacher, four streams

A lead teacher's day is Head Start in the morning, an Early Head Start room after lunch, a few state pre-K slots, and a CCDF-subsidized child in the same class. Every period someone rebuilds that split in a spreadsheet, multiplies it out, and keys it into payroll and again into the general ledger, then does it again when enrollment shifts.

THE MATCH IS DUE

Twenty percent you have to show

Federal money covers at most 80 percent of approved cost, so a grantee owes a 20 percent non-federal match every budget period and has to document it. Much of the match is people. Right now the labor cost behind it is pulled together by hand from a payroll system that was never coded to produce it by program.

THE CDA CLOCK

A credential gates the classroom

An assistant teacher on a two-year window to finish a CDA, an infant-toddler teacher whose credential renews on a three-year cycle, a family child care provider due to earn one in 18 months, background checks and physicals that recur. Miss a date and a person cannot stay in ratio. In a lean office that is a wall calendar and a hope.

THE ROSTER BREATHES

Enrollment moves the bill

Head Start rosters swell for the program year and thin for the summer, and a per-seat contract that bills the whole roster in a slow month is hard to defend to a policy council reading the budget. Staff turnover near 15 percent means constant onboarding and offboarding on top of it.

Each of these gets a real product screen below, shown with sample early-childhood data.
01 · UNDER THE CAP

How do you keep administrative labor under the 15 percent limit?

WageTime codes every salary as program or development-and-administrative labor as it is paid, so you watch payroll against the 15 percent cap all year instead of reconstructing it at closeout.

  • Code each salary as program or administrative labor per pay run.
  • Split one role across program and administration by percentage.
  • Segments up to 40 alphanumeric characters, matched to your cost categories.
  • Coded labor carries to the GL export, no closeout rebuild.
  • When a role shifts, change the split once; reports follow.
app.wagetime.com/payroll/cost-category

Cost-Category Coding · A. Reyes · Program Director

Program vs adminTies to GL
Cost categoryPercentCoded pay
ProgramPROG-100 · direct services70%$3,150.00
Development & administrationADMIN-1525%$1,125.00
Non-federal matchMATCH-NF · in-kind coord5%$225.00
Gross pay · 100% coded$4,500.00wages, taxes, and benefits split on these percentages

Replaces the closeout cost reclassification, and the administrative overage nobody saw coming.

02 · BRAIDED TO THE CLASSROOM

How do you split one teacher across Head Start, Early Head Start, and child care funding?

A braided classroom funds where the hours happen: WageTime allocates a teacher’s salary across Head Start, Early Head Start, CCDF child care, and state pre-K at the pay line, not in a spreadsheet.

  • Allocate one salary across HS, EHS, CCDF, and state pre-K.
  • Wages, taxes, and benefits split on the same percentages.
  • Time recorded to each room or stream; approved hours flow into the run.
  • Allocation carries to the GL export by stream, no re-keying.
  • WageTime codes the food program’s labor, not the meal count.
app.wagetime.com/payroll/allocation

Salary Allocation · M. Okonkwo · Lead Teacher

Splits to 3 streamsTies to GL
Funding streamPercentAllocated pay
Head StartHS-011055%$2,585.00
Early Head StartEHS-021025%$1,175.00
State pre-KSPK-440020%$940.00
Gross pay · 100% allocated$4,700.00wages, taxes, and benefits split on these percentages

Replaces the braided-funding spreadsheet, and the re-keying into the general ledger.

03 · RECORDS FOR THE MATCH

What payroll records stand behind the 20 percent non-federal match?

The payroll side of the match is the coded labor cost and paid hours WageTime keeps by program and stream, exported to your general ledger, so the match narrative starts from real figures instead of a hand-built estimate.

  • Coded labor cost and paid hours by program and stream.
  • Employee attestation, change logs, and post-approval locking.
  • After-the-fact time records tied to each grant charge.
  • Exported to the GL for the match narrative and review.
app.wagetime.com/reports/labor-by-stream

Coded Labor by Funding Stream · Budget Period

For the match narrativeTies to GL
Funding streamPaid hoursCoded labor
Head StartHS-0110512.0$16,400.00
Early Head StartEHS-0210384.0$12,150.00
State pre-KSPK-4400160.0$5,120.00
CACFP nutrition staffCACFP-7084.0$2,540.00
1,140.0 hours · coded labor$36,210.00exported by stream for the match narrative

Replaces the match documented from memory, and the estimate a federal reviewer won’t accept.

04 · THE CREDENTIAL AND THE ROSTER

How do you keep CDA deadlines current and pay a roster that changes with enrollment?

An assistant teacher whose CDA lapses cannot count toward ratio, so WageTime keeps every qualification on a dated clock with recurring alerts, and the roster that thins for summer is paid, and priced, as it actually is.

  • CDA, degree, background-check, and health dates with 30/60/90-day alerts.
  • Documents stored on the record, re-credentialing as a recurring task.
  • ACA look-back for variable-hour and program-year staff, 1094-C/1095-C at year-end.
  • Weighted-average overtime when someone works two rooms at two rates.
  • $10 per person paid that month, so a thinner roster costs less.
app.wagetime.com/hr/qualifications

Staff Qualifications & Deadlines · Classroom

All sites2 due soon
T. Nguyen60-day alertSep 12
CDA renewal (3-yr)
D. EllisOn trackNov 30
CDA to earn (18-mo hire)
M. Okonkwo30-day alertAug 20
Background recheck
J. ParkCurrentDec 03
Physical / TB clearance
4 tracked · 2 alerts sentdocuments on file, re-credentialing dated

Replaces the wall-calendar credential tracker, and the payroll bill that ignores your roster.

PRICING

Simple payroll pricing. No surprises.

Full-service payroll is $10 a month per person paid that month, plus $50 a month per company, with unlimited runs. No long-term contracts, no per-run charges.

  • Full-service payroll, unlimited runs
  • Federal, state & local tax filing
  • Year-end W-2s & 1099s
  • Direct deposit, checks & pay cards
  • Contractor payments & filings
  • Off-cycle runs & bonuses, no extra fee
  • Employee paystubs & W-2 access
  • QuickBooks integration
$10/mo per person paid
+ $50/mo per company

Off-cycle runs and bonuses cost nothing extra. No long-term contracts; cancel anytime.

Example: 50 people paid × $10 + $50 company = $550 for the month

HR & hiring, onboarding, PTO, time tracking, benefits, and workers’ comp are optional add-ons, priced separately when you’re ready.

See a demo
THE INFRASTRUCTURE BEHIND WAGETIME
$35B+
in payroll & taxes paid
2.8M+
employees paid
4.3M+
W-2s & 1099s filed
100%
of tax filings automated

Head Start payroll FAQ

How does payroll help keep development and administrative costs under the 15 percent cap?

WageTime codes each salary as program or development-and-administrative labor, and splits a role that does both on set percentages, so the coded labor cost is ready by program and by administration in the general-ledger export. Your fiscal team monitors payroll against the 15 percent line through the year instead of reclassifying at closeout. WageTime supplies the coded labor; it does not compute the ratio or the waiver.

Can you split one teacher's salary across Head Start, Early Head Start, and child care funding?

Yes. Set the allocation once as percentages across Head Start, Early Head Start, CCDF child care, and state pre-K, and WageTime divides that salary, its taxes, and its benefits on those percentages every run, then carries the split to the general ledger by stream. Job-cost segments run up to 40 characters and match your grant numbering. Change a percentage when a slot converts and you edit it in one place.

What payroll records support our 20 percent non-federal match?

WageTime produces coded labor cost and paid hours by program and stream, exported to your general ledger, so the match narrative starts from real payroll figures. Attested, change-logged, and locked timesheets stand behind each match charge as the after-the-fact record a monitoring review expects. WageTime supplies the payroll numbers and hours; it does not value third-party in-kind donations or file the match, and does not guarantee a review outcome.

How do you track CDA credentials and staff qualification deadlines?

Each CDA credential, degree-enrollment deadline, background check, and health requirement sits on the employee record with recurring 30, 60, and 90-day alerts and stored documents, and re-credentialing is tracked as a recurring compliance task. An assistant teacher's two-year CDA window, an infant-toddler teacher's renewal, and a family child care provider's 18-month deadline each get a dated alert. WageTime tracks and alerts on the dates; it does not award the credential.

Do Head Start grantees pay FUTA, and can you handle reimbursable unemployment?

Most Head Start grantees are 501(c)(3) organizations, which are exempt from federal FUTA tax, and many states still cover them for unemployment while allowing a reimbursable election instead of paying SUTA contributions. WageTime files your state taxes automatically based on how your account is set up. Bring your state and your reimbursable-or-contributory election to the demo and we’ll confirm the exact setup for your organization.

We’re building a staff wage scale. Can payroll hold it?

Yes. WageTime holds each position's pay rate with effective dating, so a wage scale by role and step lives in payroll and every rate change is captured in the audit log, and scheduled reports show pay by role for your board and policy council. Federal wage-scale and pay-parity expectations for early-childhood staff are evolving, so WageTime treats your scale as configuration and does not promise a compliance outcome.

Bring one braided classroom.

One lead teacher whose salary crosses two or more funding streams, your program and administrative cost categories, and the credentials your roster carries. Twenty minutes with a payroll specialist on a live demo program: you’ll watch a salary allocate across streams, see labor code to program and administration for the 15 percent cap, and see a CDA deadline tracked on the record.

Book a 20-minute demo