The ARP child care stabilization funds would be considered self-employment income for the child care providers since they are not universally exempted from SNAP eligibility determinations by law. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. For example, if an application was submitted such that the first month of the grant is September, they would need to recertify at the beginning of October. Effective July 2022, the CCSG Workforce Amount is awarded to recipients of the CCSG who certify they will use the amount for personnel costs including payroll/wage supplements, bonuses, and employee benefits. Programs will be prompted (via email and in LEAD) to recertify the application on the first day of the month they are recertifying. No. Virginia's Child Care Stabilization Grant Program is designed to: Stabilize child care programs now; Support providers to make strategic investments in their programs; Target higher rates of support to providers located in or serving communities hit hardest by the pandemic; and Encourage participation in the Child Care Subsidy Program. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. Archived Meeting Resources Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. Child care providers may not involuntarily furlough employees from the date of application submission through the duration of the grant. In addition, if the Tribes service area overlaps with other Tribes service areas, Tribes should consult to ensure the children in the adjoining areas are not being served by other Tribes. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021.These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. If you need assistance, please contact the Department of Early Education and Care. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. See the funding breakdown by state, tribe and territory, and more information about the grant on the White House American Rescue Plan Funding Fact Sheet. A child in a family that is receiving, or needs to receive, protective intervention is eligible for child care subsidies even if certain eligibility criteria are not met. Alternatively, states could provide quality grants to child care providers for supply retention and/or quality improvement activities to benefit the full range of families, which would make the eligibility determination process for individual families immaterial. Reprograming funds for other allowable activities does not constitute a cut in funding for child care for eligible individuals and is not considered supplantation. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. Amend CCDF Program Requirements, through a Plan Amendment if Necessary: If the Lead Agency needs to revise some program policies, but would still be in compliance with federal requirements, they can do so without a waiver (e.g., expanding definition of protective services to accommodate impacted families; waiving copays for a portion of the caseload, etc.). Please limit your input to 500 characters. Are child care providers required to provide complete relief from copayments and tuition for families in their care while they are receiving an ARP Act stabilization subgrant? In order to qualify for a child care stabilization subgrant, a child care provider must be open to provide child care services or temporarily closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services. Can I reallocate some of this money so I dont have to pay income taxes? Such a record could say, February 23, 2022 - $4,000 pay myself with the Stabilization grant.. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. Share sensitive information only on official, secure websites. Now you are on the Dashboard page, scroll down to the Recertification Section. Payments from child care stabilization funding should generally be reported as income. You would report $5,000 as income and $2,000 as an expense, and end up paying taxes on the difference, or $3,000. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. Q: If I have staff can I still pay myself the whole amount? Therefore, the grants could be excluded for SNAP purposes because they may end up being excluded from income as a reimbursementVisit disclaimer page,non-recurring lump sum paymentVisit disclaimer page, or cost of producing self-employment income (once spentVisit disclaimer page). Therefore, lead agencies are strongly encouraged to use that discretion to disqualify child care providers who have had their license or ability to participate in the subsidy program revoked or who are under investigation. Law 117-2), signed on March 11, 2021, includes $23.97 billion for child care stabilization grants to be allocated to states, territories, and Tribes based on the current Child Care and Development Block Grant (CCDBG) formula. For example, a Head Start program licensed by the state as of March 11, 2021, would meet the definition of eligible provider at section 2202(a)(2)(B)Visit disclaimer page. Lead agencies have the flexibility to disregard bonuses and increases in pay to child care workers as income when determining a child care workers eligibility for CCDF. Also, tribal lead agencies may be accountable for reporting to OCC on data elements that would have been included in the application. This is not a loan. Consult your state for the answer. Upon approval of a waiver request, Lead Agencies have 60 days to submit a CCDF Plan amendment to correspond with the provision(s) in the waiver request. Can I give him a $500 bonus? How should a program manage/account for having multiple streams of funding from EEC and other state agencies? The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. The CCSG application is now closed. The provider should keep two copies of all receipts from purchases made so that one can be kept for her IRS records and the other can be used if required for grant reporting. for administration, supply building, and technical assistance. We encourage family child care providers to contact their local WIC officeVisit disclaimer pagefor more information. In addition, expenses for this purpose are reported on the ACF-696 of ACF-696T CCDF Financial Reports under the non-direct services for systems expenditures, which are not subject to the five percent cap on administrative expenditures (45 CFR 98.54(b)(1)). Yes, Lead Agencies can use or modify their absence policy to pay providers if programs are closed or children are absent due to COVID-19. Note: the Office of Child Care is issuing this FAQ to lead agencies due to the time sensitive nature and urgency with ensuring that Americans can access the COVID-19 vaccine. Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSAVisit disclaimer page, and ARP Act supplemental funds) to help providers open or reopen. associated with the licensed capacity of 50. Including additional categories of vulnerable children in the definition of protective services is only relevant for the purposes of CCDF eligibility and does not mean that those children should necessarily be considered to be in official protective service situations for other programs or purposes. Topics include How to prepare for the grant application. Use quality dollars to provide immediate assistance to impacted providers, even if they. The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. If a lead agency allows certain limitations to physical access to a child care facility, child care providers who choose to limit physical access should ensure that parents have a way of contacting the child care provider and the ability to see or take their child out of care during regular hours (e.g., some providers bring children to the entrance of the facility to meet parents). This funding has been expended and programs that received a Child Care Restoration Grant in 2020 are required to input monthly reporting into the Director Portal. Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). ARP Stabilization Grants Congress awarded approximately $24 billion to the CCDF program with the goal of providing financial relief to child care providers to help defray unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so that they may continue to provide care. Contact your state for the answer. Stabilization Grants Therefore, there must be a connection to non-parental child care in order to use CCDF funds. In response to the COVID-19 public health emergency and its impact on the child care industry, President Biden signed the American Rescue Plan Act of 2021 (ARP Act). The goal of the child care stabilization grants is to provide financial relief to child care providers to help defray unexpected business costs associated with the pandemic, and to help stabilize their operations so that they may continue to provide care. And while many child care providers have opened back up, its been anything but easy. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Mental health supports for children and employees. To ease service delivery to these children, Lead Agencies may choose to classify them as in need of protective services for purposes of child care subsidy eligibility. As an employee stipend software company that specializes in tax compliance, Compt can serve as your trusted guide to help administer the grant money in the form of an employee stipend, while staying fully compliant with federal tax law. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) and Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. Afterwards it costs $99.00 a year. While tribes have some flexibility in defining "Indian child," the definition must be limited to children from federally recognized Indian tribes, consistent with the CCDBG Act's definition of Indian tribe (45 CFR 98.2Visit disclaimer page). This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. Will the Child Care Stabilization Grant funding be considered income when I file my 2021 taxes? Q: If I use the grant money to pay myself and then use the money to repair my home or fix my basement, can I deduct this as a business expense? [1]This amount will depend on the state in which the provider lives. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. If a program is awarded funding, they are not eligible to apply for another grant for a period of three years. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? Q: I did not include the grant I got in 2020 on my 2020 tax return. However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. Second, if the Lead Agency is unable to re-purpose the funds or does not have policies to allow for this, the Lead Agency can request a waiver of the FY2018 liquidation period due to the COVID-19 for a specified period of time in accordance with 45 CFR 98.19, requests for temporary relief from requirements. The definition of what counts as income for WIC is determined at the federal level, and payments from child care stabilization funding would generally count as income. The IRS has published information indicating that receipt of a government grant by a business is generally not excluded from the businesss gross income under the Federal Tax Code and therefore is taxable. You must claim grant funds in your business gross income. Providers must have been licensed or certified by March 11, 2021: Providers licensed after March 11, 2021 must contract with DES in order to qualify for grant funding.In addition, all providers must also: Providers are strongly encouraged to update their operational status with their Licensing authority. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . About On April 9, 2021, the Delaware Department of Health and Social Services and the Delaware Department of Education announced that the Delaware Early Education and Child Care Stabilization Fund will provide $66,752,816 in direct grants to support eligible early child care professionals across Delaware. Providers may also require additional screening processes, such as temperature checks and wearing masks, when feasible, during interactions. Q: How do I find out where to apply for this grant? After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. Section 103(d) of the American Taxpayer Relief Act amended the relevant statutory provision, 26 U.S.C. Based on currently available funding, EEC anticipates funding will be available to provide grants from July 2022 through December 2022. The recertification process can be done at any time after the first of the month. Retention of Child Care Staff. The statutory requirement at section 658E(c)(2)(S)(ii) of the Child Care and Development Block Grant (CCDBG) Act requires Lead Agencies to support the fixed costs of providing child care services by delinking provider payment rates from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. See how Compt can help you and your employees utilize these federal funds: Schedule a Demo: Our customers have figured out how: lifestyle spending accounts! Q: Is it better to pay myself with this grant or spend it on items for my business? These incentives are considered quality expenditures. This could include physically separating checks or depositing the funds in different bank accounts. The responsibilities for document retention are the same regardless of whether you are selected for review. CCDF requirements include completion of CCDF health and safety training requirements, completion of comprehensive background checks, and other lead agency-specific requirements, such as participating in a quality rating and improvement system. OCC encourages tribal lead agencies to request targeted technical assistance to complete a final application by the required deadline. The Office of Child Care (OCC) notes that in cases where the stabilization subgrants are being awarded to qualified child care providers through intermediaries, those intermediaries are sub-recipients administering a subaward, and, as such, would be subject to rules that apply to sub-recipients, including those related to obtainind a DUNS number or UEI. Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. If the lead agency does not require school-age child care providers to complete safe sleep practices training to be eligible to serve children receiving CCDF subsidies, then school-age providers are not required to complete a safe sleep practices training in order to be eligible for ARP Act stabilization assistance. A: Pay yourself first. In this case, she can deduct the business portion of these expenses by estimating the percent of time they will be used for business versus personal purposes (usually her time-space percentage). The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. Allowable changes could include children who are Tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. A: You cant use grant money to pay someone who is not treated as your employee. Commonwealth Cares for Children (C3)/ Child Care Stabilization Grants, contact the Department of Early Education and Care, Personnel costs, benefits, premium pay, and, Rent or mortgage payments, utilities, facilities maintenance and improvements, or insurance, Personal protective equipment, testing supplies, cleaning and sanitation supplies and services, or, Structural changes to the foundation, roof, floor exterior, or load-bearing walls of a facility, Extension of a facility to increase its floor area. Tribes are limited to serving CCDF children within their service area. Please remove any contact information or personal data from your feedback. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. It would be OCCs expectation that Lead Agencies would employ this flexibility only on a temporary basis for the period of the public health emergency related to COVID-19. If a tribal lead agency was unable to submit all the information prior to the deadline, a partial application was accepted. All programs will receive a 1099 for grant funds received. In addition, the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (Public Law 116-136) and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. If the payment is a physical check, retain a copy of the bank receipts of the deposit/cashing of the check. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days.
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