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). Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. No, child care providers receiving subgrants are not required to have or provide a DUNS number or UEI. Q: How do I create an emergency fund with this grant? States and territories were instructed to include these policies in the FY 2022-2024 CCDF Plans due on July 1, 2021. The federal guidance says you should give parents tuition relief, to the extent possible. This is not a requirement. Additionally, the ARP Act gave states significant discretion in determining how the child care stabilization grants would be apportioned to child care providers, and self-employment income and exclusion determinations may vary by options selected by the state. Tribes, on the other hand, are permitted to use CCDF funds for construction and major renovation to prevent, prepare for, and respond to, COVID-19. The program will aim to alleviate some of the economic and operational hardships caused by the COVID-19 pandemic and response. Upon approval of the waiver, the Lead Agency has 60 days from the date of approval to submit any associated amendments for the waiver. receipts, checks), c. Reviewing C3 training materials provided by EEC. Child care stabilization grants were appropriated to states in the American Rescue Plan Act (Public Law 117-2) to help stabilize the child care sector via subgrants to child care providers due to the COVID-19 pandemic. Rather, lead agencies have the discretion of placing reasonable conditions or timelines with regard to reopening on child care providers who receive a subgrant. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. Effective August 2022, all CCSG Monthly Reporting of expenditures will be based on the seven categories listed below: Please review the CCSG Reporting Guide for more details. Therefore, the lead agency cannot require child care providers receiving stabilization funds to use the funds to cover the cost of reduced family payments. For example, if the funding were used to cover rent, and if that did not affect a recipients net income, then the funding would not affect WIC eligibility. Tom Copelands Blog: Taking Care of Business The terms included in the Act are broad, and lead agencies have the flexibility to define them. The application indicates that funds can be used to pay for previous program expenses. CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. 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. Can I give him a $500 bonus? What is fiscal monitoring as it relates to this grant program? U.S. Department of Health & Human Services, Emergency Preparedness, Response, and Recovery Resources, National Resources about Family Child Care, ARP Act CCDF Discretionary Supplemental Funds, Early Childhood Systems Building Resource Guide, State and Territory Administrators Meeting Resources, Preschool Development Grants Birth through Five, Tribal Child Care Capacity Building Center, Early Childhood Development, Teaching and Learning, Early Childhood Learning and Knowledge Center (ECLKC), White House American Rescue Plan Funding Fact Sheet, Early Childhood Leaning & Knowledge Center (ECLKC), Tribal, State, and Territory Administrators Meeting Resources. Furthermore, a child in a family that is receiving, or needs to receive, protective services is eligible for child care subsidies even if the parent is not working or in education or training. Recipients of the C3 grants are not required to spend funds within the same month they are received. The allowable uses of subgrant funds are the same for tribal child care providers as for state and territory providers, except that tribal lead agencies may use any of the stabilization funds for construction or major renovations. Q Im receiving this grant quarterly through April 2023. Are available COVID-19 testing capacities meeting the needs of the community or would increasing testing in child care draw limited testing capacity away from populations with greater risk and exposure (e.g., health care workers and nursing home residents and workers)? These funds represent an unprecedented opportunity that will be difficult to realize without adequate staffing. You can pay yourself and then give him a bonus. 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? How will I receive the grant awards? Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. Programs will receive this funding by the end of August 2022. This program doesnt just impact parents and childcare providers either. Tribal lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children in after-school, summer, and weekend programs. Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. These funds, which have different flexibilities and restrictions from regular CCDF funds, can be used to respond to the COVID-19 pandemic while carrying out the activities of CCDF programs. 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. Published on Monday, March 22, 2021. 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. 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. This tracker should not reflect expenditures made with funds other than the Child Care Stabilization Grant monies. A lock icon ( Qualified child care providers must certify that they will meet the three certifications for the duration of their ARP Act stabilization subgrant. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. Paying yourself involves nothing more than making a record indicating this. other COVID-related expenses (including past expenses). In contrast, the child care sector provides non-parental care and early education for children. Lead Agencies also have flexibility in treatment of regular UC benefits. The provider must pay each employee (including lead teachers, aides, and staff that are employed by the child care provider to work in transportation, food preparation, and any other staff that the provider employs), at least the same amount in weekly wages and maintain the same benefits (such as health insurance and retirement, if applicable) for the duration of the grant. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? Section 103(d) of the American Taxpayer Relief Act amended the relevant statutory provision, 26 U.S.C. The eligibility requirements defined at section 98.20(a)Visit disclaimer page of the CCDF regulations have separate financial eligibility requirements one for income and one for assets. 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.) Child care providers that receive a grant have a reporting obligation on Form 1099-G if the amount is above $600. If so, how do I do this? A: Maybe, depending on how much of the grant you dont spend on business items. The tax implications of the grants depend on several factors, namely, how the provider uses the funds, the providers household income, and possibly the state in which they live. The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Tribal lead agencies must also ensure that throughout the subgrant period, the tribally operated center meets the certification requirements, including implementing health and safety policies in line with local guidelines, continuing to pay at least the same wages and benefits to staff as those in place at the time of application, and to the extent possible, providing relief from copayments and tuition for families. That said, if a provider is receiving other public benefits based on income eligibility (e.g., health benefits, tax credits, student financial aid) and this grant increases their taxable income to a level that will make them no longer eligible for those benefits, they may need to look very closely at the cost versus the benefit of receiving a stabilization grant. Agreements with intermediaries should include requirements for intermediaries to collect and report data to lead agencies on a regular basis, as lead agencies will be expected to report on this information to OCC. Lead agencies may use regular CCDF, CARES, CRRSA(PDF), and ARP Act Supplemental CCDF Discretionary funds for direct child care services. Lead agencies were instructed to include a description of their stabilization grant implementation, including the link to the subgrant application on their website, how grants are awarded, any strategies used to target providers in low-income communities, how funds have been used by providers, and any impacts or results on providers (e.g., increased number of licensed child care programs open in underserved area) or child care staff (e.g., increased number of staff receiving higher wages) as a result of the stabilization grants. Well answer: One of the most common questions about this federal relief program is how much is the grant? Do programs have to complete federal grant reporting to receive C3 funding? When posting information, OCC recommends including details on how interested child care providers can contact the lead agency for more information on accessing and submitting an application. Example 3: Provider uses some of the grant to pay herself and some for business expenses. CCDF Lead Agencies have the flexibility to decide whether to disregard Unemployment Compensation (UC) benefits under the CARES Act or the CRRSA Act as income or resources when determining CCDF eligibility and family co-payment amounts. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. As we all know, parents need access to safe, quality child care to get back to work. Documents Center Online Services Media Center Office Locator Report Fraud Home Services Child and Family Child Care Child Care COVID-19 Grant Program Intermediaries are subject to the same obligation and liquidation period for ARP Act stabilization funds regardless of whether those funds are for administering the subgrants or one of the administrative, supply building, or technical assistance activities. 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. No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. What is the New Child Care Stabilization Grant? Obligation and liquidation information for regular CCDF funds is described in the instructions to the ACF-696 and ACF-696T CCDF expenditure reports. 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. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. Q: If I only have one child, can I still apply for the grant? This work may include, but is not limited to, designing and reviewing subgrant applications, providing support in estimating current operating expenses, distributing subgrant funds, and monitoring the use of subgrant funds. Each approved program receives a Fixed Costs and Families Grant, based on . 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. Even before the public health emergency, child care provider income was unstable and insufficient to cover the costs of providing high-quality care, and the COVID-19 public health emergency has exacerbated this instability. The ARP Act does not address if a child care provider can terminate an employee for cause during this period. 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. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Furthermore, given finite CCDF funding to meet child care needs, the federal Office of Child Care encourages Lead Agencies to set parameters that restrict the use of CCDF for child care services during times when schools are open and children are able to attend safely in person. Broaden/loosen any State-, Territory-, or Tribal-specific eligibility requirements for CCDF subsidies up to the Federal maximum allowed. It is also important for providers to know that not all business expenses are fully tax deductible. Your regional office can help provide support for submitting these waiver requests. When child care providers struggle, this creates a ripple effect in the economy when families cant get childcare. Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? EEC can then help the provider determine whether any funds need to be returned. The request must also provide sufficient detail on the provision(s) from which the Lead Agency is seeking temporary relief and how relief from the sanction or provision, by itself, will improve the delivery of child care services for children and families. A: You arent paying yourself for any particular hours you work. How do you determine your salary? Yes, tribal lead agencies may use the entirety of their ARP Act stabilization funds on construction and major renovation. 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). 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. Additionally, child care programs are not subject to report C3 grant funding in the Uniform Financial Report (UFR) submitted to the Commonwealth of Massachusetts' Operational Services Division (OSD). If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. For each month you receive the CCSG award, a monthly report is due by the last day of the month following your previous months expenditures. Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. OCC encourages tribal lead agencies to request targeted technical assistance to complete a final application by the required deadline. 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. This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? Afterwards it costs $99.00 a year. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. In addition, all tribal lead agencies were allocated $30,000 as a base amount of the ARP Act stabilization funds prior to allocating funds based on the number of children served. Lead agencies may reverse an application approval prior to the award of funds if something changes between the approval and award, including, but not limited to, a licensing violation or revocation, fraud, or permanent closure of a provider. No. We encourage family child care providers to contact their local WIC officeVisit disclaimer pagefor more information. Lead agencies have wide discretion in how subgrant amounts are formulated, including how current operating expenses are calculated. OCC encourages child care providers in the financial position to provide relief from copayments and tuition for families to use non-ARP Act stabilization funds to provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. Providers must submit a monthly report on how all grant funds have been spent. The EITC phases in with earnings and phases out with the greater of earnings or AGI. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. However, OCC reminds Lead Agencies that a waiver for extraordinary circumstances is only necessary if the change would not comply with federal CCDF requirements; otherwise, changes can be made through Option 1: amending requirements, through Plan amendments if necessary. Child Care Stabilization Base Grants will be available to all eligible providers on a monthly basis beginning September 2021. For example: The August 2022 CCSG report must be submitted by September 30, 2022. Lead agencies should use the definition they use for obligations for regular CCDF funds when determining whether ARP Act stabilization funds are obligated. Q: If I was audited, would they just audit my grant or my entire business? For all of the above answers that were No, you can still pay yourself and then use the money for these purposes. OCC recognizes that tribally operated centers may not need to submit an application to indicate their need for funds because the tribal CCDF program operates the center, but the tribal lead agency is still accountable for assurances about the supplantation requirements and ensuring that the funds are being used for allowable activities.
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