eForms Logo

Daycare (Child Care) Contract Template

Create a high-quality document now!

Daycare (Child Care) Contract Template

Updated December 22, 2023

The daycare contract allows a parent to hire the services of a daycare business or in-home childcare person (babysitter) to take care of their child. A daycare is commonly a place of business where the parent will drop-off their child and pick up again at a later time. Daycares are predominantly for working parents during the workweek, Monday to Friday, providing childcare after school. Depending on the age and length the child stays at the daycare, responsibilities may include meals, helping with homework, and any other similar responsibilities.

Table of Contents

What is a Daycare?

A daycare is a place of business that parents may utilize to provide care for their children when they are at work or other obligations. openings, hours per week, transportation, trips,

Daycare Types

  • 24-Hour – If a parent is seeking to have their child stay overnight.
  • Center-Based – Child is dropped off at a commercial daycare location.
  • Gym – For parents looking to get a workout and have their child be entertained.
  • Home-Based – Child is dropped off at a residential daycare location.
  • Infant/Toddler – Full-service and usually more money requiring the necessary care and nurturing of the child.

Home-Based vs. Center-Based

The two (2) types of daycare are home-based and center-based. They are both generally utilized on a scheduled basis matching the parents’ work schedules.

Home-Based is commonly

  • More Affordable
  • Fewer Children
  • Flexible Hours

Center-Based is commonly

  • More Expensive
  • More Children
  • Stricter Hours

Daycare Requirements

Daycares are regulated by each State’s childcare administration office establishing laws related to building and safety codes in addition to how many adults must be available per children. Every daycare must hold a license and be in good standing in order to be located in each State’s daycare registry.

In addition to State laws, there may be local laws and required building codes attributed to daycare centers.

Daycare License Lookup

Click on the State below to perform a license search for a daycare facility:

How Much is Daycare?

National Average (monthly basis):

  • Center-Based Daycare: *$1,324[1]
  • Home-Based Daycare: *$1,141[2]

(*Based on 25 hours per week.)

Child Care Aware provides an interactive map that allows you to examine and compare the average price of child care across different states.[3]

Is Daycare Cheaper than a Nanny?

Yes, in most cases. The national average for a nanny is $19.14/hour.[4]

Calculation – If we use the data above (25 hours/week) and account four (4) weeks in a month we have 100 hours/month. Now we take the average center-based is $1,230/month which equals $12.30/hour and the average center-based childcare is $800/month which equals $8/hour.

Daycare Costs vs Nanny Costs

  • Nanny: $19.14/hour
  • Center-Based Daycare: $12.30/hour
  • Home-Based Daycare: $8/hour

Is Daycare Tax Deductible?

Yes, up to $1,050 for a single parent and $2,100 for both parents. Only children that are below the age of 13 qualify unless the parent has a child with physical or mental disabilities.

  • IRS Form 2441 – Use this to file for the tax deduction (credit) at the end of the fiscal year.


The tax credit is calculated as a percentage, a maximum of 35%, of $3,000 per parent. The amount of the tax deduction depends on the income of the parents. (see table below)

  • $0 to $15,000: 35%
  • $15,000 to $17,000: 34%
  • $17,000 to $19,000: 33%
  • $19,000 to $21,000: 32%
  • $21,000 to $23,000: 31%
  • $23,000 to $25,000: 30%
  • $25,000 to $27,000: 29%
  • $27,000 to $29,000: 28%
  • $29,000 to $31,000: 27%
  • $31,000 to $33,000: 26%
  • $33,000 to $35,000: 25%
  • $35,000 to $37,000: 24%
  • $37,000 to $39,000: 23%
  • $39,000 to $41,000: 22%
  • $41,000 to $43,000: 21%
  • $43,000+: 20%

Calculation Example

If a single mother makes $30,000 per year, her tax deduction would be 27% (.27) multipied by $3,000 equaling $810.

Sample Daycare Contract


I. The Parties. This Daycare/Childcare Services Agreement, (“Agreement”) made [DATE] (“Effective Date”) made by and between:

Parent(s): [PARENT’S NAME], with a mailing address of [ADDRESS], City of [CITY], State of [STATE], (“Parent(s)”)


Child Care Provider: [PROVIDER’S NAME], with a mailing address of [ADDRESS], City of [CITY], State of [STATE], (“Child Care Provider”).

Child Care Provider and Client are each referred to herein as a “Party” and, collectively, as the “Parties.”

NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual promises and agreements contained herein, the hires the Child Care Provider to work under the terms and conditions hereby agreed upon by the Parties:

II. The Children. This Agreement shall only be for the following child(ren) named below:

Child’s Name [FIRST CHILD’S NAME] Date of Birth [BIRTHDATE]

Child’s Name [SECOND CHILD’S NAME] Date of Birth [BIRTHDATE]

Child’s Name [THIRD CHILD’S NAME] Date of Birth [BIRTHDATE]

Hereinafter known as the “Child(ren)”.

III. Term. The term of this Agreement shall commence on [DATE] (“Commencement Date”) and terminate: (check one)

– At-Will with written notification of at least [#] days’ notice.

– On the date of [DATE].

IV. Child Care Services. The Child Care Provider agrees to supply the necessary daily care to the Child(ren). Such daily care shall include, but not be limited to, constant supervision, viewing social engagements, promoting good behavior, and any of the following extra services: (check all that apply)

– Changing Diapers

– Providing Snacks/Food/Meals

– Other. [SPECIFY].

Hereinafter known as the “Child Care Services”.

V. Schedule. The Child Care Provider shall provide their Services to the Child(ren) in accordance with the following weekly schedule: (check all that apply)

Days                           Start Time                          End Time

– Monday.       [#] ☐ AM ☐ PM            [#] ☐ AM ☐ PM
– Tuesday.       [#] ☐ AM ☐ PM            [#] ☐ AM ☐ PM
– Wednesday  [#] ☐ AM ☐ PM           [#] ☐ AM ☐ PM
– Thursday      [#] ☐ AM ☐ PM           [#] ☐ AM ☐ PM
– Friday           [#] ☐ AM ☐ PM            [#] ☐ AM ☐ PM
– Saturday      [#] ☐ AM ☐ PM            [#] ☐ AM ☐ PM
– Sunday         [#] ☐ AM ☐ PM.           [#] ☐ AM ☐ PM

a.) Late Pickup. If the Parent(s) is going to be late picking up their child(ren), every effort must be made to contact the Child Care Provider. A late pickup fee of $[AMOUNT] shall be administered if the Parent(s) are more than [#] minutes late after the child’s pickup date (“Late Pickup Fee”). The Late Pickup Fee shall be administered to each child that has not been picked up.

b.) Overtime Care (with approval). If the Parent(s) has received approval from the Child Care Provider for overtime care of the Child(ren), the Child Care Provider shall provide such care at a rate of $[AMOUNT] per hour.

c.) Overtime Care (without approval). If the Parent(s) has not received approval from the Child Care Provider for overtime care of the Child(ren), the Child Care Provider shall provide such care at a rate of $[AMOUNT] per hour.

VI. Holidays. The Parties acknowledge and agree that the Child Care Provider will not be available on the following national holidays: (check all that apply)

– New Year’s Day

– Martin Luther King Jr Day

– President’s Day

– Memorial Day

– Independence Day

– Labor Day

– Columbus Day

– Veterans’ Day

– Thanksgiving

– Christmas Day

VII. Payment Amount. Under this Agreement, the Child Care Provider shall provide Services of $[AMOUNT] for each child per

Hour Day Week Month (“Payment Amount”).

VIII. Payment Method. The Payment Amount shall be paid: (check one)

– Daily

– Weekly

– Bi-Weekly

– Monthly

– Other: [DESCRIBE].

Hereinafter known as the “Payment Method”. The Payment Amount and Payment Method shall be referred to as “Compensation”.

IX. Deposit. The Parent(s) is/are: (check one)

– Required to pay a deposit in the amount of $[AMOUNT] to the Child Care Provider as security and may be applied for any damage made on the premises by the Child(ren) or for any unpaid balances by the Parent(s) any Services provided (“Deposit”). If the Deposit is used by the Child Care Provider, for any reason, the Child Care Provider shall demand the Deposit is repaid to the aforementioned amount or this Agreement shall terminate within five (5) business days.

– Not required to pay a deposit before the Child Care Provider is able to provide their Services.

X. Absent. If any Child(ren) are to be absent, the Child Care Provider requires that at least [#] day(s) notice be provided. If any Child(ren) are absent with proper notice, the Parent(s) shall be charged [AMOUNT] for the absent day(s).

If any Child(ren) are absent without proper notice, the Parent(s) shall be charged the full amount as if their Child(ren) were provided Child Care Services for the absent period.

XI. Vacation Times. The following vacation times shall be administered to each Party: (check all that apply):

– Parent(s) Vacation. The Parent(s) must provide at least [#] day(s) notice before their Child(ren) is on vacation. During the Parent(s) vacation, the Parent(s) are required not required to pay for Child Care Services during such vacation.

– Child Care Provider(s) Vacation. The Child Care Provider(s) must provide at least [#] day(s) notice before going on vacation.

XII. Damages. If any of the Child(ren), while under the Child Care Provider’s supervision, causes any damage to the premises other than normal wear and tear on toys, furniture, or damage, the Parent(s) shall be responsible for repairing any said damage caused by the Child(ren).

XIII. Governing Law. This Agreement shall be governed by and shall be construed in accordance with the laws in the State of [STATE].

XIV. Severability. If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

XV. Additional Terms & Conditions. [LIST]

XVI. Entire Agreement. This Agreement constitutes the entire agreement between the Parties to its subject matter and supersedes all prior contemporaneous agreements, representations and understandings of the Parties. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all Parties.

Parent(s) Signature _______________________ Date ____________

Print Name _______________________

Child Care Provider’s Signature _______________________ Date ____________

Print Name _______________________

Related Agreements

Babysitting Contract – For the hiring of a babysitter to supervise children for a temporary period.

Nanny Contract – For the hiring of a nanny to supervise children for a long-term period.


    1. AmericanProgress.org
    2. AmericanProgress.org
    3. ChildcareAware.org
    4. NannyLane.com