For family child care homes , the model includes a salary for the provider / owner . Many of these providers do not pay themselves a salary , as small business owners their income is usually whatever is left over after all expenses have been paid . However , to estimate the true cost of care , and to better compare the cost of center-based and home-based care , the cost model includes a salary line for the provider / owner , while acknowledging that individual providers will make their own decisions about how they use these funds . The CTW salary scale includes a position for the FCC provider / owner . When the “ current salary ” option is selected , the FCC salary is equal to the provider ’ s reported average annual income in the cost of care survey . For kindergarten salary option , the FCC provider / owner salary is based on the lead teacher salary in the center model , adjusted to account for the longer hours worked . In the MIT Living Wage Calculator scenario , the FCC salary is calculated based on the living wage calculation for a typical family composition of an FCC provider , adjusted to account for the longer hours worked and the additional responsibilities provider / owners have .
Mandatory and Discretionary Benefits Mandatory benefits are included for all salaried staff , including FICA-Social Security at 6.2 %, Medicare at 1.45 %, unemployment insurance at 1 % and workers ’ compensation at 2 %.
By default , 10 days paid sick leave and 10 days paid leave is included for all staff . This is captured as an expense by including the cost to pay a substitute teacher to provide classroom coverage .
Discretionary benefits can be included at either $ 6,000 or $ 9,000 per employee per year . This might be used as a contribution to health insurance or for a suite of discretionary benefits . Data from the
Kaiser Family Foundation find that the average annual single premium employer contribution to health insurance in Washington is $ 6,305 .
A contribution to retirement can also be modified by the user , based on a percentage of an employee ’ s salary . By default , the model includes a 6 % contribution .
Non-personnel Expenses Non-personnel costs are aggregated into the following categories :
Education Program for Children and Staff , which includes :
• Education / Program — Child : Food / food related , classroom / child supplies , medical supplies , postage , advertising , field trips , transportation , child assessment materials .
• Education / Program — Staff : Professional consultants , training , professional development , conferences , staff travel .
Occupancy : Rent / lease or mortgage , real estate taxes , maintenance , janitorial , repairs , and other occupancy-related costs .
Program Management and Administration : Office supplies , telephone , internet , insurance , legal and professional fees , permits , fundraising , memberships , administration fees .
Values for each of these non-personnel categories is based on data collected from Washington child care providers for this study . The table below provides the values used in the default scenario ( Center : four classrooms , serving children birth through school age ; FCC : eight children ).
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