If you do sign up, please use the referral code 0659. Paycheck Protection. Before the pandemic, there were approximately 675,000 childcare providers around the country, mostly small businesses, who were already operating on thin margins. 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. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). An Office of the Administration for Children & Families, for an existing multiyear construction project. Previous updates can be found on the ARPA Stabilization Grants page on the Pennsylvania Key website. January 10, 2023. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. As part of their ARP Act stabilization subgrant application, child care providers must certify they will pay at least the same amount in weekly wages and maintain the same benefits for each employee throughout the duration of the subgrant. Deducting income before calculating a providers current operating expense as part of determining a subgrant award amount undermines the purpose of the ARP Act stabilization subgrants. The answer is yes, these funds are taxable. Some child care businesses may qualify for tax credits to support paid sick leave while they receive a vaccine and recovery from any side effects. Stabilization subgrant funds cannot be used to incentivize license-exempt, non-CCDF-eligible providers to become CCDF-eligible and therefore eligible to receive a subgrant. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. We encourage family child care providers to contact their local WIC officeVisit disclaimer pagefor more information. 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. Any other cessation of work or attendance at a training or education program that does not exceed three months, or a longer period of time established by the Lead Agency. In those circumstances, the ARP funds would not affect an individuals annual income used to calculate the individuals portion of rent. Stabilization funds can only be used for services necessary to maintain or resume child care services. Paying another entity to handle the applications for stabilization funding does not fall into this category. Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. The Child Care Stabilization Grant is considered income and is taxable. The CARES Act and the CRRSA Act do not restrict child care providers from simultaneously receiving funding from the CCDF Discretionary funds and from other federal or state programs, such as the small business loan funds offered through the CARES Act and the CRRSA Act. Retention of Child Care Staff. Regarding Federal taxation, please contact the Internal Revenue Service for guidance. Q: What impact will receiving this grant have on my Social Security benefits? 116-127) added a temporary FMAP increase of 6.2 percentage points beginning January 1, 2020, and continuing through the Coronavirus Disease 2019 (COVID-19) public health emergency period. CCDF funds allocated in FY2018 were available for obligation in FY2018 or FY2019. However, families who receive TANF cash assistance may be categorically eligible for SNAP. If a program closes permanently, will the program need to return the grant funds? This may include additional eligibility criteria (that apply only at redetermination) or adjusting the graduated phase-out levels to help the lead agency manage the population served and ensure that those most in need are receiving services. Providers who received an initial disbursement will receive email notifications via NJCCIS when they are eligible to recertify, this process will begin in December 2022. Contribute to a SEP IRA or Roth IRA? Funded by supplemental Child Care Development Block Grant funds through the American Rescue Plan Act (ARPA), this opportunity is intended to help stabilize the cost of maintaining child care programs by supporting the child care workforce, reducing the financial burden of child care for families and ensuring a safe and healthy environment. Information and resources to help CCDF Lead Agencies and providers understand, administer, and access child care stabilization grants. Lead Agencies may temporarily lower a familys co-payment while the family is experiencing temporary or non-temporary job loss. State and territory lead agencies provided information on their implementation of stabilization grant funding plans in their FY 2022-2024 Child Care and Development Fund (CCDF) Plan, Q 4.1.8e due July 1, 2021. These grants, funded with federal stimulus funding through the American Rescue Plan Act, began in September 2021 and are available to eligible child care providers through . The application indicates that funds can be used to pay for previous program expenses. With limited exceptions, home visiting does not fall within any of these allowable uses. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. Therefore, the applications must include a way for child care providers to certify they will meet these requirements. You can deduct the amount you pay your assistant. There has never been this amount of federal funding dedicated to childcare providers, which makes this an incredible opportunity. The Expenditure Tracker can be found on the EEC website under the Resources section: Commonwealth Cares for Children / Child Care Stabilization Grants | Mass.gov. Example 2: Provider uses full amount for business expenses 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. If so, follow up with your state to make sure they are following their own rules. 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. This is unsustainable for many reasons. State tax rules apply. Federal law defines income for SNAP. The American Rescue Plan Act was signed into law in March 2021, providing South Dakota with additional funds designed to help stabilize the child care industry as the state continues to recover from the COVID-19 pandemic. No, CCDF funds cannot be used to purchase laptops or equipment solely for the purpose of allowing children to access virtual school instruction from home. Though essential workers are not subject to the income eligibility requirement to receive child care services funded by the COVID-19 supplemental funds, they are subject to the other CCDF program eligibility requirements. a Are there any program revenue guidelines to receive this stabilization funding? and is required within 60 days of the effective date of the requirement. In almost every situation, a provider will benefit financially from these grants even after taxes. There is also not a federal limit on the total dollar amount of stabilization subgrants that a qualified provider can receive. It would also be allowable for the Lead Agency to use CCDF quality dollars to provide grants to impacted child care providers to improve quality and/or maintain the supply of child care. The American Rescue Plan Act of 2021 (ARP Act) (Pub. Yes, CCDF lead agencies may reprogram regular CCDF, CARES, or CRRSA funds until the obligation deadlines, which is September 30, 2022, for CARES and CRRSA. 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. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Q: How do I pay myself for the hours I work in the weekends or after work hours? Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. Funds are in place so every eligible program can receive one grant per facility/site. Start-up & Expansion. If a program closes temporarily during the 12-month grant period (for vacation, illness/injury, or COVID-19-related issue) will the program still be eligible for the grant during that month? FAQs in this category focus on questions about how to implement subgrant programs and allowable uses for these funds by the provider. Tom Copelands Blog: Taking Care of Business Providers must report as taxable income all the money they receive from the Stabilization Grants Explore Tom Copeland's "Child Care Stabilization Grants and New Tax Changes for 2021." and The Tax Implications of the Child Care Stabilization Grants to learn more Resources from Tom Copeland's website ATTENTION: Announcing the ARP (American Rescue Plan) Act 2021 Child Care Stabilization Payments. She may keep the funds in the bank account as an emergency fund for later use or she can spend it as she wishes. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. around the country, mostly small businesses, who were already operating on thin margins. Lead agencies may define what it means to be regulated or registered in the state, territory, or tribe. Note that child care providers that are receiving stabilization subgrants from a tribal lead agency should be serving at least one Indian child, as defined by the tribal CCDF Plan. No, ARP Act stabilization subgrants cannot be used to assist in the purchase of a child care program. Lead Agencies should amend their CCDF Plan with respect to such changes. The Child Care Stabilization Grant (CCSG) Program sustains Arizonas child care network by giving a consistent, reliable funding source directly to child care providers to cover increased cost and challenges due to COVID-19 through June 2023. If you are not selected for a review, you should still observe sound documentation practices and prepare as you may be selected for review or asked for supporting documentation by EEC in the future. Yes, tribal lead agencies are required to limit applications to providers serving Indian children (as defined by the CCDF Plan) from federally recognized tribes. A Plan amendment is required for any substantial program change (e.g., change in eligibility, rates, copays, etc.) There are only limited circumstances under which the Child Count can change. 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. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. All Rights Reserved. In an effort to properly balance these interests, consistent with statutory and regulatory restrictions on the use of CCDF for school, we offer the following: A CCDF Lead Agency has the option to use CCDF to pay for tutoring or academic support services, but only if meeting all of the following conditions: Yes, electronic equipment is an allowable use under CCDBG as an activity to improve the quality of center-based, home-based, or in home child care services provided for school-aged children (45 CFR 95.53(a)(10)). See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. Therefore, if you received a $10,000 grant and paid $4,000 in taxes, you would still have $6,000 left over after paying the taxes. All of the information and application process for the Child Care Strong program will be available here. For most providers, this would be about 30-40% in taxes. The grants cannot be used for new construction or major renovations. dollars for the Child Care Stabilization Grants These grants are to provide financial relief to family child care providers and child care centers to cover business costs associated with COVID-19 and to help stabilize their operations This represents a substantial financial benefit to all child care programs! When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning . Home visiting programs typically provide services to parents and families to ensure that they have the necessary resources and skills to raise and care for their own children. Get more information about KidKare. NOTICE: All CCSG Providers must now use the NEW monthly report launched beginning with the grant award for September 2022. Yes. 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. 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. However, as stated above, efforts to increase access to licensing is considered a supply building activity. OCC encourages tribal lead agencies to request targeted technical assistance to complete a final application by the required deadline. You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. 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