is child care stabilization grant taxable

Therefore, a lead agency could define a lack of qualified staff or demand as an accepted reason related to the COVID-19 public health emergency for why a child care provider may be temporarily closed. Child Care Stabilization Grants and New Tax Changes for 2021, by Tom Copeland November 11, 2021 2:00 PM Eastern Time Presenters Copeland, Tom Author, Trainer, Advocate View profile IMPORTANT : The process for obtaining certificates and CEUs has changed for this webinar. This funding is subject to the same state and federal tax rules as regular Child Care Development Fund (CCDF) funding. If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. Any expenses incurred by the intermediaries that are not part of the subgrants will count against the administrative set-aside of either 10 percent for states and territories, or 20 percent for tribal lead agencies, and are subject to the same obligation and liquidation deadlines. The lead agency may also choose to use funds provided by the CRRSA Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. 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. PIN 23-10-CCP - Resources To Support The Social And Emotional Development Of Children During Periods Of Stress Or Trauma. A CCDF Lead Agency should not consider the economic impact payments (up to $1,200 for qualifying individuals and an additional $500 per child) as income for CCDF eligibility or co-payment calculations. Such a record could say, February 23, 2022 - $4,000 pay myself with the Stabilization grant.. Yes, tribal culture or language preservation camps can receive stabilization subgrants. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. . How do I calculate my SVI? 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. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. Contributions to an IRA will not reduce your Social Security/Medicare taxes. The lead agency may also choose to use funds provided by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act Q: Would you need a separate account to pay yourself? Likewise, lead agencies have the flexibility to disregard payments made to youth in, or formerly in, foster care through the Chafee Program for Successful Transition to Adulthood as income. Example 3: Provider uses some of the grant to pay herself and some for business expenses. Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. This report summarizes the webinar series Child Welfare and Early Childhood: Cross-Systems Collaboration to Improve Outcomes for Young Children and Their Families. They are: For the purposes of determining CCDF eligibility and co-payment amounts, a Lead Agency may treat the UC benefits from the CARES Act or the CRRSA Act differently from the way it treats regular UC benefits. The Child Care Stabilization Grant is income to your business and is taxable by the state and federal government. As a reminder, child care providers must certify that they will pay at least the same wages and benefits to staff for the duration of the subgrant. Why does the child care stabilization grant matter? Q: If I use the grant for my IRA, can I deduct 100% of this on my taxes? Then put aside some money in a place that is low risk (bank savings account, short-term bond fund or money market account). 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 notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. A: You can deduct your Time-Space% of your utilities. No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. To the extent that child care workers continue to participate in TANF, SNAP, or Medicaid, child care workers would not lose WIC as a result of receiving child care stabilization funding. In addition, lead agencies can and are expected to use some of their ARP Act stabilization set-aside to help child care providers access and apply for assistance, free of charge to the provider. This is consistent with the statutory requirement at section 658E(c)(2)(S)(ii) of the Act that requires Lead Agencies to support the fixed costs of providing child care services by delinking payments from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. Is this deductible? 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. In emergency situations, Lead Agencies have the option of deeming certain impacted childrensuch as children of health care, emergency, or other essential workers-- to be in need of protective services and therefore, the regular CCDF eligibility requirements (e.g., income threshold) need not apply. As noted in 45 CFR 98.16(cc), Lead Agencies must provide descriptions in their CCDF Plans of (1) internal controls to ensure integrity and accountability; (2) processes to investigate and recover fraudulent payments and to impose sanctions on clients or providers in response to fraud; and (3) procedures to document and verify eligibility, pursuant to 45 CFR 98.68. 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)). 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. 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. 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. Additional information for tribes that operate their CCDF program under a consolidated 102-477 plan is available here. Lead agencies may use part of their set-aside and other COVID-19 funds (i.e., CARES, CRRSA . 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. First, Lead Agencies can consider re-purposing other obligations in FY2018 or FY2019. Q: How do I pay myself for the hours I work in the weekends or after work hours? If you received hiring and recruitment funds you must submit your report prior to applying (report was due July 31, 2022). A: You can include it either on line one (Gross receipts) or line six (Other Income). Emergency and post-stabilization services, including those for specialized behavioral health, are rendered without the requirement of prior authorization of any kind. 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. Goods and services necessary to maintain or resume child care services. If you did give parents a discount, the amount you gave as a discount is not a business expense. Paying a share of the ARP Act stabilization funds to another entity, including a bookkeeping firm, to apply for stabilization funding and assist with documentation as part of the grant management, is not an allowable use of the ARP Act stabilization funds. $3,500 income $3,500 expenses = $0 taxable income and $0 taxes owed. 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. Going forward, child care providers should continue to consider CDC guidance and follow lead agency requirements related to COVID-19, and be prepared to update processes if and when states, territories, and tribes resume pre-COVID policies for parental access to children. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. November 11, 2021 Copyright 2021 Tom Copeland 1 Welcome! Q: How do I create an emergency fund with this grant? Family child care providers must report any portion of the stabilization grant that they use to pay themselves as taxable income on their federal and state income tax return (unless their state chooses to make the grant not taxable). $1,000 Hiring and Retention Bonuses Also Being Paid to Child Care Workers. Stabilization Help Line: 844-863-9319 Hours: Monday - Friday, 8:30 AM - 4:30 PM The ARP Act does not impose requirements on whether to include or exclude ARP Act child care stabilization funds. Example 2: Provider uses full amount for business expenses However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. However, when families resume work, it would not be considered an increase to subsequently raise the co-payment to the original amount, provided it does not exceed the amount established at the previous eligibility determination/re-determination. This means that funds used to create a licensing department would count toward quality activities or non-direct services rather than administrative purposes. to cover copayments for all eligible families. Yes, Lead Agencies have the option to pay CCDF subsidies for school-age children for time in child care when the children are completing remote, virtual, or online schoolwork. Therefore, my answers below may not be the same answers your state gives you. Alternatively, CCDF Lead Agencies also have the option of interpreting the prohibition as applying only during times when schools are open for in-person classes, since there may not be a regular school day during times when schools are closed for in-person classes. 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). Supporting Centers in Preparing for Child Care Stabilization Grants In contrast, the child care sector provides non-parental care and early education for children. In addition, Tribes would have to consult with nearby Tribes (if applicable) to ensure children in the adjoining areas are not being served by other Tribes. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. 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. A: No, because paying yourself does not create a deduction. Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? ARP stabilization funds used for tribal construction or major renovation must be liquidated by September 30, 2023; there is no separate obligation deadline for funds used for construction or major renovation. Contribute to a SEP IRA or Roth IRA? 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. Providers receiving stabilization subgrants are not categorized as sub-recipients as defined at 45 CFR 75.2. The request must also certify and describe how the health, safety, and well-being of children served through CCDF will not be compromised as a result of the waiver. the Child Care Grant Portal. These incentives are considered quality expenditures. This enables Lead Agencies to have the flexibility to define in their CCDF Plan the criteria that the Lead Agency believes would best serve subsidy families, such as families affected by COVID-19 circumstances. for more information. Ensuring parents have access to their children while they are attending child care is a longstanding CCDF requirement that supports program quality and transparency, as well as parent and family engagement. Generally, annual income means all amounts, monetary or not, which go to, or on behalf of the assisted family that are not specifically excluded by HUD regulations (24 CFR 5.609(a)). Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Stabilization grant funds are exempt from the following CCDF spending requirements: . The CCDF regulation at 45 CFR 98.20(a)(3)(ii) clarifies that the protective services category may include specific populations of vulnerable children as identified by the Lead Agency. A concrete slab in the backyard used for basketball, skating, etc.? My student loans? This fall, the Legislature passed, and Governor Whitmer signed a budget that includes over $700 million in grant funding to support child care providers like you. Purchases of or updates to equipment and supplies to respond to the COVID-19 public health emergency. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. 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. This prohibition applies to both the set-aside and the subgrant funds. We encourage family child care providers to contact their local SNAP office OCC has not released specific guidance that addresses all possible scenarios related to categorizing regular educational services for school-aged children that would not be eligible for CCDF subsidies. Lead Agencies should follow their Continuity of Operations Plans (COOPs). Per CCDF regulations, assets can be self-certified by a member of the household. 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. FMAP rates and state matching requirements are published on the GY 2020 state and territory CCDF allocation tables page. No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. ACF has prioritized continuity of care, as demonstrated by the graduated phase-out policy. 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. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. In addition, CCDF regulations provide that Lead Agencies shall expend and account for CCDF funds in accordance with their own laws and procedures for expending and accounting for their own funds [45 CFR 98.67(a)] For additional guidance on the ARP Act, see the Office of Child Care IM on the . Important note: Although there is federal guidance on how the Stabilization grants are to be administered, each state may interpret this guidance slightly differently. Lead agencies may also use other COVID relief funds (CARES Act, CRRSA Act The ARP Act We are grateful for the work you do for our children and communities. Q: My son is a part-time assistance that I dont do payroll taxes for him. However, because this analysis depends heavily on the individuals particular circumstances, we encourage child care workers receiving federal housing assistance to contact their Public Housing Agency (PHA) or Owner for more information. Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. Therefore, the grants could be excluded for SNAP purposes because they may end up being excluded from income as a reimbursement Provider A receives a $3,500[1] grant and uses the entire amount of the grant to pay herself; the full amount of the grant will be taxable, but the provider can spend the funds on whatever she wants (e.g., pay down personal debt, save for an emergency, save for retirement, go on vacation). Tribes Tribal Lead Agencies have additional flexibilities to meet the unique needs of the populations they serve. 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. Use this grant money to make improvements to your program or help it recover from the COVID-19 public health emergency. Q: What impact will receiving this grant have on my Social Security benefits? Regarding federal tax rules, please contact the Internal Revenue Service for guidance. Q: Can I use the Stabilization grant for: Pay my taxes? The grants cannot be used for new construction or major renovations. Lead agencies should contact their OCC Regional Offices for support and technical assistance related to spending the various funding streams so they can reach child care providers and families quickly. However, child care providers who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal or state programs, including the Small Business Administrations Paycheck Protection Program (PPP), the Public Health and Social Services Emergency fund, or unemployment compensation. For example, a Lead Agency could increase income eligibility up to 85% of State Median Income; many Lead Agencies currently have lower thresholds. (45 CFR 75.2 Lead agencies do not have to require additional information at the time of the application as part of the certification process. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. Agreements with intermediaries should include a requirement 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. 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. Major renovation is defined as: (1) structural changes to the foundation, roof, floor, exterior or load-bearing walls of a facility, or the extension of a facility to increase its floor area; or (2) extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include any structural change. 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. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. You will not be able to apply for CEUs for this webinar. However, Lead Agencies may apply for temporary waivers for extraordinary circumstances in response to emergency situations in accordance with 45 CFR 98.19. Grant Background In response to the urgent need to stabilize the child care sector, the American Rescue Plan (ARP) Act included approximately $400 million for New Jersey child care stabilization grants. .). 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. The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. Like regular tribal CCDF funds, tribal ARP Act stabilization funds are set-aside to serve tribal children. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. ). Lead Agencies have the flexibility to determine which children qualify as receiving or needing to receive protective services, and could include families affected by COVID-19 circumstances in that definition as a temporary, short-term measure. 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: No. The property tax stabilization program would end and 2 existing programs would be expanded to provide more targeted relief to lower-income seniors under a proposal passed by a legislative committee. Information on the grant awarded for the State Innovation Model Proposal Migrant Affairs. offered by Department of Early Education and Care Child Care Stabilization Grants FAQs Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC) Frequently Asked Questions Eligibility Programs that are awarded a grant will receive an IRS Tax Form 1099-NEC. Further, child care providers should keep certain things in mind when determining how to interact with parents in order to control COVID-19. You can use it for free during a 30 day trial period. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. This enhanced FMAP rate has the effect of decreasing the amount that states will be required to spend to claim their full CCDF match allotment. A provider may look up the address of the facility on the interactive map and see the SVI score. Please reference the Child Care Workforce Stabilization (CCWS) Grant Guidance. The instructions for submitting applications for construction or major renovation (available on the OCC website) require the tribal lead agency to describe the percentage of floor space that will be used to provide direct services to children. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. As the incentives in question would be to promote vaccination among child care providers and support health and safety in child care programs, this would be an allowable use of CCDF quality funds. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? , CRRSA How do you determine your salary? 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). Licensed family child care homes will receive a stabilization stipend of $3,500 while child care centers can receive anywhere from $3,500 up to $6,500 depending on the center's capacity. ACF strongly recommends that CCDF lead agencies coordinate with the state agency that administers TANF to ensure that child care workers do not lose or experience reductions in their TANF benefits when receiving assistance from the ARP Act child care stabilization funds. The Centers for Disease Control and Prevention (CDC) guidance suggests staggering drop-off and pick-up times and/or having a child care provider meet children outside of the facility when they arrive. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. 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. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? Is this grant counted as income? U.S. Department of Health & Human Services, Administration for Native Americans (ANA), Administration on Children, Youth, and Families (ACYF), Office of Family Violence and Prevention Services (OFVPS), Office of Human Services Emergency Preparedness and Response (OHSEPR), Office of Legislative Affairs and Budget (OLAB), Office of Planning, Research & Evaluation (OPRE), Public Assistance Reporting Information System (PARIS), section 2202(d)(B)(i) and (ii) of the ARP Act, ARP Act supplemental CCDF Discretionary funds, Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, FY 2022-2024 Child Care and Development Fund (CCDF) Plan, FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation, or cost of producing self-employment income (once spent, US Department of Labors webpage on UC benefits related to the COVID-19 outbreak, https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation, Rent, utilities, facility maintenance or improvements, or insurance, Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety, Purchases of or updates to equipment or supplies to respond to the COVID-19 public health emergency, Goods and services necessary to maintain or resume child care services, Mental health support for children and employees, Administering child care stabilization funds, Carrying out activities to increase the supply of child care, Providing technical assistance and support for stabilization applications, Publicizing the availability of ARP Act stabilization funding, Providing technical assistance to providers receiving ARP Act stabilization funds. One example is the Rural Tribal COVID-19 Response (RTCR) program established by the Health Resources and Services Administration (HRSA) with CARES Act funds which allows rural tribes to increase their capacity to test suspected COVID-19 patients within their communities. The remaining funds may be used for administering the subgrants, providing technical assistance and support for applying for and accessing these subgrants, publicizing the availability of these subgrants, carrying out activities to increase the supply of child care, and providing technical assistance to help child care providers meet certain policies. and is required within 60 days of the effective date of the requirement. You may use grant funds to pay for an accountant or financial advisor. CCDF lead agencies have the flexibility to decide whether to disregard many of the COVID-19 supplemental payments to individuals as income when determining eligibility for CCDF subsidies, unless treatment of those payments as income or not is specified in law. While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. Are child care stabilization grants taxable? With limited exceptions, home visiting does not fall within any of these allowable uses. , and ARP Act supplemental funds) to help providers open or reopen. Dental crown not covered by insurance?
Best Hotels In Marysville Ohio, Cat Ninja: Welcome To The 'burbs, Racquetball State Sites, Emerson Townhomes Laurel, Md, Articles I