child care stabilization grant taxable

Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. In contrast, the child care sector provides non-parental care and early education for children. A: No. If a provider is unable to provide relief from copayments and tuition payments for all families enrolled in the program, they should prioritize doing so for families most in need of relief and target families earning below 85 percent of the State Median Income. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. Further, expenses incurred by the intermediaries that are not part of the subgrant (i.e., passed through to an eligible child care provider) will count against the set-aside of either up to 10 percent for states and territories or up to 20 percent for tribal lead agencies. Retention of Child Care Staff. Lead Agencies have the option to waive the income eligibility requirements for children who receive (or need to receive) protective services, if determined to be necessary, on a case-by-case basis. It would be reasonable, for instance, for Lead Agencies to prioritize services for, or even restrict eligibility to, families with children who are unable to attend school in person because of closures or health reasons over families with children who are able to attend school in person, but opt not to. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? 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. 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. Programs in inactive status are not able to apply or recertify their stabilization grant while they are in inactive status, as only programs that are open to serve children are eligible for stabilization grants. We will use this information to improve this page. In each monthly submission, you will complete two sections: NOTICE: All CCSG providers must now use the NEW monthly reportlaunched beginning with the grant award for September 2022. CCDF funds provide financial assistance to low-income families to access child care so they can work or attend a job training or educational program, and provide resources for quality improvement of child care. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. Providers must submit a monthly report on how all grant funds have been spent. Payments to child care workers that are sourced from ARP Act stabilization funding are other types of income that can also be excluded from the eligibility calculation. Lead agencies may also use other COVID relief funds (CARES Act, CRRSA ActVisit disclaimer page, and ARP Act supplemental) and regular CCDF funds to also help providers become CCDF-eligible. Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM If a Lead Agency adopts this interpretation, it would be allowable (but not required) for a Lead Agency to use CCDF for child care services when children are completing remote, virtual, or online schoolwork or instruction while in child care. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. 2023 BUILD Initiative. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. These stabilization funds are time-limited resources that are intended to stabilize the child care sector and workforce. Before the pandemic, there were approximately 675,000 childcare providers around the country, mostly small businesses, who were already operating on thin margins. Stabilization Grants But childcare providers have been really struggling to stay afloat, and many have resorted to taking on personal debt to get by or temporarily closing altogether. Like regular tribal CCDF funds, tribal ARP Act stabilization funds are set-aside to serve tribal children. Lead Agencies should consider whether there are more appropriate sources of fundingsuch as public education dollarsto pay for this equipment. Apply for a waiver to use CCDF funds to provide direct services to families who do not meet CCDF eligibility requirements (e.g., with income above 85% of State Median Income; see note above regarding additional flexibility regarding use of the CARES Act and CRRSA Act CCDF program funds) and/or providers who do not meet CCDF health and safety requirements. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? 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. Yes, the ARP Act requires the lead agency to make available on the lead agencys website an application for qualified providers that includes certifications the child provider, for the duration of the subgrant, will implement certain health and safety requirements and guidance, pay full compensation to staff, and, to the extent possible, provide relief from copayments and tuition for families in their care (section 2202(d)(2)(D)(i)Visit disclaimer page). The facility to be constructed must be used principally to provide direct child care services to children. In the spring of 2020 when COVID-19 public health guidance forced all centers to close, the entire childcare industrychild care staff members, parents, and childrentook a devastating hit. If approved, these waivers may temporarily exempt Lead Agencies from meeting health and background checks requirements. A: The Child Care Stabilization Grant consists of: program amount + workforce amount + add-ons. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! Furthermore, in many states, participation in TANF also makes families automatically eligible for SNAP and/or WIC. Federal Pandemic Unemployment Compensation, which provides an additional $300 per week to individuals who are collecting regular state or Federal UC, through weeks of unemployment ending on or before March 14, 2021. What can EEC-licensed programs use the C3 grant funds for? ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers, farmworkers, and other workers deemed essential during the response to the coronavirus, without regard to the income eligibility requirements. Stipulations for what the funds can be spent on and how to properly report them. Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Can I give him a $500 bonus? Lead agencies may choose to contract with intermediaries, such as counties, child care resource and referral agencies, and staffed family child care networks, to manage the administration of the ARP Act stabilization subgrants. 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). However, even if it does push you into a higher tax bracket, it only means you will pay more in taxes on the grant amount that is in the higher tax bracket. 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. Yes. A: Yes! If a program is in inactive status for a full month, they are not eligible for grant funding during that month. NEW (Updated 2-23-22) I have a positive case of COVID-19 in my program, and I have applied for the COVID-19 Child Care Stabilization and Recovery Grants, now what? Distributing the funds to employees (most states require a portion of grant funds to be paid out to employees)? 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. Why does the child care stabilization grant matter? As noted at section 45 CFR 98.21(a)(3) of the CCDF rule, Lead Agencies are prohibited from increasing the family co-payment amount within the minimum 12-month eligibility period (except for families eligible through graduated phase-out). 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. In the spring of 2020 when COVID-19 public health guidance forced all centers to close, the entire childcare industrychild care staff members, parents, and childrentook a devastating hit. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. Afterwards it costs $99.00 a year. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. Because efforts to increase access to licensing are considered a supply building activity, funds from this set-aside could be used to create a child care licensing department for the tribe. Using a reimbursement model, management and reporting is easy and takes the burden off your HR team. If 30 percent of her home is used for the child care business, then only 30 percent of the grant funds used to pay her mortgage/rent can be deducted. 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. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? However, under the CCDBG Act and CCDF rule, regardless of whether a child is physically at school or not, it is not allowable to use CCDF for any regular education services for which students receive academic credit toward graduation or any instructional services which supplant or duplicate the academic program of any school. OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. Lead agencies must continue to meet this requirement throughout the public health emergency. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy & Safety How YouTube works Test new features Press Copyright Contact us Creators . To prepare for an EEC fiscal monitoring review, you should consider: a. Documenting all expenditures made with grant funds by using the recommended Expenditure Tracker or a similar tool, that includes at a minimum: b. Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. Child care programs may not furlough any employees while receiving the C3 grant funds. Is there a deadline for spending this funding? Q: If I pay myself will I need to give myself a W-2? As this requirement applies to the date of application, a school-age program that is closed during the summer would be eligible for a subgrant if the program applied for the subgrant when it opened again to provide child care services, such as in the fall when school reopens. If there are multiple Programs registered, Search Provider to quickly locate the Provider. Is there a limit to the number of programs that will be funded? During the fiscal monitoring review process, will other sources of funding be reviewed outside of the C3 Child Care Stabilization Grant (such as a PPE loan)? The closure may be a school-wide closure or for off-days of a hybrid model (e.g., a combination of in-person, virtual, and/or off days.) Tutoring or academic support services that are stand-alone services or delivered outside of child care settings/services are not an allowable use of CCDF. The limited exceptions where it might be appropriate to use ARP Act stabilization funds for home visiting include instances where there is a direct connection to non-parental child carefor example, providing stabilization grants to child care providers who deliver home visiting as an integral component of their child care program for children enrolled in the child care program, or using the set-aside to support home visiting services that provide resources and support specifically for family child care providers, or if the purpose of the home visiting is to provide mental health services for children in child care. The ARP Act stabilization funds are designed to support the child care market as a whole by covering business related expenses. As this requirement applies to the date of application, a school-age program that is open only during the summer would be eligible for a subgrant if the program applied for the subgrant when it opened again to provide child care services, such as in the summer when the program reopens. Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention. Examples of documentation include receipts (electronic or paper), paid invoices, payroll records, and employee timecards. Additional instructions for construction and major renovation procedures for Tribes can be found in the Program Instruction (CCDF-ACF-PI-2020-02) on the OCC website. These funds are designed to support the child care market as a whole by covering business related expenses. Thus, a policy that terminates the receipt of the subsidy at redetermination for a child who is otherwise eligible is inconsistent with the law and the rule. Checks payable from the business bank account to the sole proprietor/individual, Electronic statements that document funds transferred from the business bank account to the personal bank account, Documentation evidencing expenditures made with grant funds, Responses to questions about general provider information, provider accounting systems/processes, and the internal controls in place, the amount (in dollars) of the expenditure, the category of allowable uses under which the expenditure fall, the type of supporting documentation for the expenditure. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Click Log in on the desired Program to go to that Programs EEC ARPA grants page. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. Eligibility Application Recertification Questionnaire Training Grant Funds A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. Tribal lead agencies may use CCDF funds from more than one funding stream (i.e., Mandatory, Discretionary, Supplemental, or stabilization funds) to fund a construction or major renovation project, as indicted in their application for construction or major renovation (. Purchase of a swim spa for physical therapy, exercise, relaxation? However, the monthly design of grant funding is to ensure that programs have the stable cash flow for ongoing operational costs that adjusts to changing conditions (i.e., staffing changes). Q: If licensed family childcare is allowed 12 kids max. Lead agencies are encouraged to use ARP Act supplemental funds, as well as CRRSAVisit disclaimer page and CARES Act funds, to provide relief from copayments for CCDF-eligible families and cover the portion of the child care cost ordinarily covered by copays. To the extent that child care workers continue to participate in TANF, child care workers would not lose SNAP eligibility as a result of receiving child care stabilization funding. Child care providers that are receiving stabilization subgrants from a tribal lead agency must be serving at least one Indian child but are not restricted from receiving stabilization subgrants from a tribal lead agency if they also serve non-Indian children or have received a stabilization subgrant from a state. However, there may be some situations where child care stabilization funding should not be reported as income by a family child care provider (e.g., if the funding were used to cover rent, and if that did not affect a recipients net income).

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child care stabilization grant taxable

child care stabilization grant taxable

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