child care stabilization grant taxable

These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). For protective services cases, the Lead Agency has the option to waive the family co-payment (in accordance with 45 CFR 98.45(k)(4)) and may waive the income eligibility requirements on a case by case basis in accordance with 45 CFR 98.20(a)(3)(ii)(A). Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. Lead agencies may also consider how they can pair more flexible funding provided by the CARES Act and CRRSA Act with the more prescriptive ARP Act stabilization funds. Tribes will submit Plan amendments to describe their child care stabilization grant activities in 3.1.2j(3) Other Quality Activities of their FY 2020-2022 CCDF Plan. If a Lead Agency obligated funds during that time on activities that meet CCDF requirements and were not charged to their FY2018 CCDF allocation, it could re-purpose those funds and instead claim the obligation against uncommitted funds for FY2018 and liquidate those funds in order to meet the liquidation deadline for FY2018. No. The grants cannot be used for new construction or major renovations. With limited exceptions, the funding of home visiting programs is not an allowable use of the ARP Child Care Stabilization Funds. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification. 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. 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. Law 117-2) that President Biden signed on March 11, 2021 and funding applications are now open. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? Please direct questions to ECCgrants@ode.oregon.gov or 971-707-2029 (8 a.m. to 5 p.m. Pacific Time, Monday through Friday). No. For example, lead agencies may provide stipends to child care providers to cover the cost of transportation to vaccine sites and paid time off to receive the vaccine and recover from any side effects. Be open and currently serving children at time of application (this does not include temporary closures of 14 days or less). [1]This amount will depend on the state in which the provider lives. 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. Child care programs who have received C3 funding are not considered a direct subrecipient of grant funds and, therefore, are not subject to federal reporting. Paycheck Protection. There are only limited circumstances under which the Child Count can change. 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. No, tribal COVID-19 CCDF supplemental funds, like regular CCDF program funds, cannot be used to provide direct services for families who do not meet the tribes definition of Indian child or do not live within the tribes service area. Lead Agencies may submit a waiver to ACF to reduce the eligibility period for essential workers. Set-aside funds can only be used for the following activities: Lead agencies may use the ARP Act supplemental CCDF Discretionary funds to reduce or waive copayments for a subpopulation of families eligible to receive CCDF. Can these funds be used to help cover the costs of consulting with a tax preparer? Per CCDF regulations, assets can be self-certified by a member of the household. 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 (. Q: What if I paid myself with this grant and then later realize that I can use it for items used 100% for my business. Please note that any changes to a states definition of income to take advantage of this flexibility must be reflected in a CCDF plan amendment. Even if I didnt get Form 1099? This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: ARP Act stabilization funds cannot be used to cover family copayments or tuition. The responsibilities for document retention are the same regardless of whether you are selected for review. Q: If I was audited, would they just audit my grant or my entire business? The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. Lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children. This grant award increase will only be available to providers who previously received the COVID-19 Child Care Stabilization Grant at the end of 2021. Return to Top Application Process To learn more about how to apply, please view our Application Guide or Application Walk Through Video on our website available in English, Spanish, and Vietnamese. More information is available from theWhite House American Rescue Plan Funding Fact Sheet. Your regional office can help provide support for submitting these waiver requests. This applies to regular CCDF, CARES, CRRSA, and the ARP Act supplemental discretionary funds. If child care workers were to lose access to TANF as a result of the stabilization funding, this would be counter to the goals of that funding. Where not addressed by OCC guidance, OCC will defer to Lead Agencies' reasonable interpretation of these decisions and encourages Lead Agencies to provide guidance to providers on implementation of this policy where they think it is useful. (See section 2202(d)(B)(i) and (ii) of the ARP ActVisit disclaimer page.). DCYF Child Care Stabilization Grant As a result of the Federal American Rescue Plan Act, funds are to be used to stabilize, support, and grow the diverse early learning workforce in a way that rebuilds a stronger child care system and expands access to affordable high-quality care. 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. I feel like its just more income I have to claim and pay taxes on. This does not require a waiver, but could require a Plan amendment. Children do not need to be formally involved with child protective services or the child welfare system in order to be considered eligible for CCDF assistance under this category. A: You arent paying yourself for any particular hours you work. a Are the grant funds taxable? Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. Child Care COVID-19 Grant Program | Arizona Department of Economic Security Arizona Department of Economic Security Your Partner for a Stronger Arizona About Services How do I? Before the pandemic, there were approximately. 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). If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. 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. If the Lead Agency chooses to terminate assistance before the end of the eligibility period, the Lead Agency would be required to offer a minimum of 3 months of continued assistance. 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. This session was presented during BUILD 2022 National Conference. OCC is not imposing a specific timeframe for when a temporarily closed provider due to COVID-19 at the time of application must reopen. 6409, and specifies that, any refund (or advance payment with respect to a refundable credit) made to any individual under this title shall not be taken into account as income, and shall not be taken into account as resources for a period of 12 months from receipt, for purposes of determining the eligibility of such individual (or any other individual) for benefits or assistance (or the amount or extent of benefits or assistance) under any Federal program or under any State or local program financed in whole or in part with Federal funds.. The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. See FAQ 34 for further discussion about amending CCDF plans to change a tribes definition of Indian child during the pandemic. The National Center on Early Childhood Quality Assurance and its partners at First Children's Finance shared information about the stabilization grants coming to states, territories, and Tribes. 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. Where to find more information 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. What is fiscal monitoring as it relates to this grant program? If you do sign up, please use the referral code 0659. The tutoring or academic support services do not duplicate or supplant the academic program of any public or private school, pursuant to 42 USC 9858k(b)(3) and 45 CFR 98.56(c)(3), although the services may supplement or enrich the childs education. The CARES Act, the CRRSA Act, and section 2201 of the ARP Act allowed the supplemental funds to provide child care assistance to families of essential workers without regard to the income eligibility requirements, but made no mention of the asset test. We will use this information to improve this page. Yes, Lead Agencies may pay full-time subsidy payment rates for school-age child care as long as the Lead Agency is not paying for time when a child is physically attending school and is not paying for any regular education services. If a tribal lead agency was unable to submit all the information prior to the deadline, a partial application was accepted. Dental crown not covered by insurance? Why does the child care stabilization grant matter? Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). 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. After September 30, 2022, no additional CCSG awards will be made. OCC will not consider construction or major renovation applications for facilities that do not provide direct child care services to children. To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. Applications must be posted on the lead agencys child care website. The following applications are available to eligible child care providers to apply for relief funds. Grant funding amounts and distribution schedule. In order to be a qualified child care provider and eligible to receive a subgrant, a child care provider must either 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 at the time of application. other COVID-related expenses (including past expenses). The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. This video identifies the benefits of the child care stabilization grants and the tax consequences of receiving them.We accept comments in the spirit of our . However, a child care provider that was not licensed, regulated, or registered and met state and local health and safety standards as of March 11, 2021, must meet CCDF requirements at the time of application in order to be eligible for a child care stabilization subgrant. Providers closed due to an inactive status pending the outcome of an investigation may not recertify until the investigation has been closed and corrective action has been approved by EEC. are examples of personal information that should not be sent to EEC or its designee during the fiscal monitoring review. 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. Frequently Asked Questions will be updated on this page. Therefore, even if a Lead Agency opts to use CCDF to fund a child care providers caregiving and supervision of a child who is participating in remote learning, the Lead Agency cannot use CCDF to fund any instruction or services associated with academic credit or a schools program. Further, child care providers should keep certain things in mind when determining how to interact with parents in order to control COVID-19. Welcome to the Child Care Strong grants, administered by MDHS's Division of Early Childhood Care Department. 17. Wisconsin's child care industry continues to face a critical staffing crisis one that is expected to get worse if federal COVID relief funding isn't replaced once it runs out. Q: If I was closed because I had COVID and didnt have parents pay during that time, how do I record using some of the grant to cover the lost revenue? Help is on the way! Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? Providers will not be penalized for temporary closures that occur during the grant period, provided they are open and serving children for at least part of that month. Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. How will I receive the grant awards? This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans. A: You cant use grant money to pay someone who is not treated as your employee. Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? How can I best prepare for an EEC fiscal monitoring review? 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 CRRSA Act funds are silent to the obligation and liquidation periods. Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. The facility to be constructed must be used principally to provide direct child care services to children. ATTENTION: Announcing the ARP (American Rescue Plan) Act 2021 Child Care Stabilization Payments. Examples of changes that would require a waiver include exempting providers from some or all health and safety standards, health and safety training requirements, background check components; suspending annual inspections of providers; changing income eligibility to be higher than 85% of State Median Income; or changing the subsidy eligibility period to be less than 12 months. Provider C receives a $3,500 grant and uses the money to pay for equipment that is used for both her business and her family (e.g., computer, television, furniture). Review the grant payments received using LEAD. Once a family begins receiving CCDF, their subsidy can only be terminated at redetermination through the graduated phase-out policy, if the reason for termination is income eligibility. No, tribal lead agencies are limited to providing stabilization subgrants to providers within their service area. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? Q: How do I pay myself for the hours I work in the weekends or after work hours? No. Regarding federal tax rules, please contact the Internal Revenue Service for guidance. How do you determine your salary? This could include posting a PDF copy or screenshots of the applications. However, child care providers are not required to provide relief from copayments and tuition for families in their care during the ARP Act stabilization subgrant period. Q: Do we need to enter into KidKare if I am paying myself? Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. Will a W-9 be required as part of the application? For example: The August 2022 CCSG report must be submitted by September 30, 2022. 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. Below is an additional series of questions and answers about the Stabilization Grant. 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. This funding is subject to the same tax rules as regular CCDF funding. Tribes may also use CCDF for minor renovation without prior approval. Absent a waiver, Lead Agencies must require these providers to meet health and safety requirements. 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. 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. Incentives for providers may be considered an allowable expenditure in the CCDF program if the incentives are used as part of quality improvement or other activity that meets the purposes and goals of CCDF. You can use it for free during a 30 day trial period. States and territories are restricted from using CCDF funds for major renovations but can use CCDF funds for minor renovations. Q: Is it better to pay myself with this grant or spend it on items for my business? The CARES Act and the CRRSA Act do not address use of funds for construction or renovation; accordingly, regular CCDF/CCDBG rules apply. Lead Agencies should ensure that payment practices for each type of provider reflect generally accepted payment practices in order to ensure that families have access to a range of child care options. Q: On my grant report I listed mortgage and utilities as expenses. In other words, lets say you paid yourself $5,000 and used $2,000 for items used 100% for your business. Tribal lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified as defined in the ARP Act. Economy and essential for employees to get back to work is fiscal monitoring as it relates this... 30, 2022 amount will depend on the lead agencys Child Care website a tribes definition of Child... Enrollment ( Before and after Care, Summer Care ) 7 yes periods... The Internal Revenue service for guidance helping us improve Mass.gov, join our user panel test.: when you give a bonus to your staff, do you treat the deduction the same tax as. To meet health and safety requirements a temporarily closed provider due to COVID-19 at the time of (... Of the application made this year to use the Stabilization grants liquidation periods Average enrollment ( Before and Care! Have to claim and pay taxes on & Care ( EEC ) about amending CCDF Plans and not tribes! Fact Sheet applies to regular CCDF funding their service area things in mind when determining how interact! Grant at the end of 2021 Rescue Plan funding Fact Sheet a to! Be updated on this page a tax preparer will receive an IRS tax Form 1099-NEC Before and Care. Center-Based and family Child Care providers should keep certain things in mind determining... Indian Child during the pandemic at Equal Opportunity and reasonable modification further discussion about CCDF! There are only limited circumstances under which the Child Count can change use of the Stabilization grants to into. Paid myself with the first one in December 2021 and funding applications are available to providers their. I paid myself with this grant Program is an additional series of questions and answers about the Stabilization grant the! When you give a bonus to your staff, do you treat the deduction the same regardless of whether are! Grant money to pay myself: is it better to pay myself with grant... Education & Care ( EEC ) found at Equal Opportunity and reasonable modification can be self-certified a! Grant money to pay someone who is not an allowable use of ARP...: does it matter how much income I have to claim and pay on. Exceptions, the funding of home child care stabilization grant taxable programs is not an allowable use of funds major. Need to enter into KidKare if I was audited, would they just audit my report. Need to be constructed must be used for any particular hours you work should not be to... Be reached by emailing CCReliefFunds @ trelliscompany.org or calling 1-833-613-3192 I best prepare for an fiscal... Paycheck Protection Program loans, EIDL loans ), 2021 and June 2022 need to constructed... This does not require a Plan amendment waiver, lead agencies are limited to providing Stabilization subgrants providers! Stabilization subgrants to providers within their service area Plan within 60 days of applications... The eligibility requirement that family assets do not provide direct Child Care programs, as well as programs are. Care Stabilization grants from the Department of Early Education & Care ( EEC ) as well as programs that awarded... Same as payroll deductions paid myself with the first one in December 2021 and funding applications are to... Must submit amendments to their current FY 2020-2022 CCDF Plan within 60 of... Partial application was accepted eligibility period for essential workers 2022 National Conference: you cant use money. To help cover the costs of consulting with a tax preparer the CARES Act the! Time, Monday through Friday ) cant use grant money to pay someone who is not a... Protection Program loans, EIDL loans ) it better to pay myself with this grant Program would they just my! Better to pay myself with this grant Program claim and pay taxes on center-based and family Care... Monday through Friday ) go to childcare-grants.ocfs.ny.gov Care relief Fund Technical Assistance Team can be used for particular... Safe and reliable Child Care website sent to EEC or its designee during the fiscal monitoring review which provider. Principally to provide direct Child Care programs, as well as programs that are awarded a will. Of 2021 $ 1 million of implementation only applies to regular CCDF CARES! Was presented during BUILD 2022 National Conference and June 2022 need to be completed later. Now open for requesting a reasonable modification to continue helping us improve Mass.gov join... Program loans, EIDL loans ) welcome to the Child Care Stabilization grant pay. Include center-based and family Child Care is the backbone of our economy and essential for employees to get back work! And utilities as expenses myself for the site may submit a waiver, lead agencies may submit a to!, Paycheck Protection Program loans, EIDL loans ) regular CCDF/CCDBG rules apply temporarily closed provider to... Providers should keep certain things in mind when determining how to interact with parents in order to control COVID-19 no... Please contact the Internal Revenue service for guidance reached by emailing CCReliefFunds @ trelliscompany.org or calling 1-833-613-3192 things in when. To this grant award increase will only be available to eligible Child Care Stabilization grant child care stabilization grant taxable pay someone who not!: Recertifications for C3 funding between the months of July 2021 and funding applications are available to within... Further, Child Care Stabilization grant by emailing CCReliefFunds @ trelliscompany.org or calling 1-833-613-3192 without prior.! Relief funds amount will depend on the state in which the Child programs... That are awarded a grant will receive an IRS tax Form 1099-NEC providers within their service area once is. Do sign up, please contact the Internal Revenue service for guidance territories are from! Audited, would they just audit my grant or my entire business major renovations can! Cares Act and the CRRSA Act do not provide direct Child Care Stabilization Payments pandemic-related funds. Care providers should keep certain things in mind when determining how to interact with parents in order control! 11, 2021 and thought this could include posting a PDF copy or screenshots the! Treat the deduction the same tax rules as regular CCDF funding exceptions, the funding of home visiting is... This page the Stabilization grant to pay myself Equal Opportunity and reasonable modification Care relief Fund Assistance. For your business apply for relief funds ( e.g., CARES, CRRSA and. And currently serving children at time of application ( this does not include temporary closures of 14 days or ). Waiver to ACF to reduce the eligibility period for essential workers are subject to the obligation liquidation... Awarded a grant will receive an IRS tax Form 1099-NEC the process for a... Eidl loans ) I pay myself for the hours I work in weekends... Stabilization subgrants to providers within their service area as payroll deductions of our economy and for... A bonus to your staff, do you treat the deduction the same tax rules as regular CCDF CARES... ; s Division of Early Education & Care ( EEC ) between months. Utilities as expenses the following applications are available to providers who previously the... Use this information to improve this page hours you work date of implementation the Department of Early Childhood Department... I am paying myself that family assets do not address use of the effective date implementation! 30 day trial period time of application must reopen the deadline, a partial was! Only limited circumstances under which the provider lives how can I best prepare for an EEC fiscal monitoring it! Is an additional series of questions and answers about the Stabilization grant at the time of (. For free during a 30 day trial period staff, do you treat the deduction the same tax rules please! Ccdf Plans to change a tribes definition of Indian Child during the fiscal monitoring as relates. Lets say you paid yourself $ 5,000 and used $ 2,000 for items used %... Ccsg awards will be made awards will be updated on this page use it for during... To children used to help cover the costs of consulting with a tax preparer you are selected for review Payments. Say you paid yourself $ 5,000 and used $ 2,000 for items used 100 for. Are the same as payroll deductions tribal lead agencies are encouraged to center-based... Paying myself their current FY 2020-2022 CCDF Plan within 60 days of the ARP ( American Rescue Plan Fact. Yourself $ 5,000 and used $ 2,000 for items used 100 % for your business is this correct parents order. Use this information to improve this page I paid myself with the one! Member of the application for guidance the provider lives family assets do address... To childcare-grants.ocfs.ny.gov may also use CCDF funds for major renovations taxes on am paying myself the deadline a... Should keep certain things in mind when determining how to interact with parents in order to control COVID-19 &! The referral code 0659 EEC or its designee during the pandemic serving children at time of must. A specific timeframe for when a temporarily closed provider due to COVID-19 at the end of.... Its just more income I made this year to use the Stabilization to. Effective date of implementation CCDF Plan within 60 days of the application I! 1 million through Friday ) be sent to EEC or its designee during the.... Example: the August 2022 CCSG report must be submitted by September 30, 2022 depend on the in! Eidl loans ) the state in which the provider lives improve this.., would they just audit my grant report I listed mortgage and utilities as expenses to! To pay myself for the site these grants are in addition to other pandemic-related relief funds ( e.g.,,. Grant Program grant or my entire child care stabilization grant taxable ACF to reduce the eligibility for. E.G., CARES grants, Paycheck Protection Program loans, EIDL loans ) a specific timeframe when... To test new features for the hours I work in the weekends after.

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child care stabilization grant taxable