Why AFC Facilities Should Use QuickBooks for Payroll and Compliance

A Powerful Tool for Streamlining Operations, Staying Legal, and Reducing Risk

Running an Adult Foster Care (AFC) home in Michigan means juggling care delivery, staff management, documentation, and strict regulatory compliance — all while trying to stay financially stable. One area where many AFC providers struggle? Payroll and recordkeeping.

Whether you're operating solo or managing multiple homes, using a system like QuickBooks for payroll can save time, reduce stress, and help you avoid costly licensing or Medicaid-related issues.

Here’s why QuickBooks isn’t just a bookkeeping tool — it’s a compliance and operational lifesaver for AFC providers.

✅ 1. Payroll Accuracy — Without the Paperwork Headaches

Manual payroll methods (or using outdated spreadsheets) are error-prone and time-consuming. QuickBooks:

• Automatically calculates regular and overtime pay

• Tracks hourly staff, salaried employees, and shift differentials

• Allows for easy PTO, sick time, and holiday pay tracking

For AFCs with Direct Care Worker (DCW) Premium Pay, QuickBooks makes it easy to:

• Add a separate pay line for premium wages (e.g., $3.40/hour)

• Show premium pay on the employee’s pay stub, as required by Region VII AAA and MDHHS

• Provide accurate documentation during audits

💡 Compliance Tip: MDHHS requires premium pay to be clearly documented and paid within 30 days of the month worked. QuickBooks helps ensure this happens automatically.

📂 2. Built-In Record Keeping for LARA & Medicaid Audits

Whether it’s LARA, Region 7 AAA, or MDHHS, you’re required to keep:

• Pay stubs with wage breakdowns

• Hours worked per employee

• DCW Premium Pay documentation

• Payroll reports showing totals, dates, and deductions

QuickBooks allows you to generate all of this with one click, keeping you audit-ready at all times.

🧾 3. Easy Tax & Withholding Compliance

As a licensed AFC provider, you're required to:

• File quarterly payroll taxes

• Track federal/state withholdings

• Submit accurate year-end W-2s or 1099s

QuickBooks automates this entire process and ensures you meet deadlines. This reduces your risk of:

• IRS penalties

• Unpaid payroll taxes

• Incorrect W-2s or missing employer filings

📉 4. Avoid Costly Administrative Errors

Small AFC homes often assign payroll to a caregiver, administrator, or owner. This leads to:

• Misclassified workers (W-2 vs. 1099)

• Missed overtime

• Poor documentation of shift hours

With QuickBooks, your payroll runs itself — and every detail is tracked and backed up. This means:

• No more missed payments

• Less risk during audits

• More time spent on care, not calculations

📊 5. Simplify Business Reporting and Budgeting

QuickBooks helps you:

• Track labor costs by facility or program

• Run profit and loss reports

• Monitor Medicaid revenue vs. payroll expenses

• Prepare for license renewals or Medicaid rate negotiations with confidence

This is essential for growth-minded AFC operators who want financial clarity and control.

🛡️ Roseberri Can Set It Up for You — Or Run It For You

At Roseberri, LLC, we specialize in helping Michigan AFC homes:

• Set up and customize QuickBooks for care facility needs

• Integrate Medicaid documentation with payroll

• Track premium pay and regular wages

• Maintain records that meet both LARA and MDHHS requirements

• Avoid the top payroll mistakes that lead to licensing violations or Medicaid audit flags

🖥️ Whether you want it set up once or handled every week — we’re here to help.💬 Email us at roseberrimanagement@gmail.com to get started.