Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. If a program is awarded funding, they are not eligible to apply for another grant for a period of three years. No. For Group and School Age/Center-Based (GSA)programs, the formula will use a centers total licensed capacity to calculate the base amount of the monthly payment. This webinar, presented by child care business expert, Tom Copeland, will cover all the new tax changes affecting family child care providers for 2021.These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. 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. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. All organizations receiving funding must report this as income to your program. Q: How do I pay myself for the hours I work in the weekends or after work hours? 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. 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. There are two components of North Carolina's Child Care Stabilization Grants. Therefore, while providers may choose to increase pay or offer bonuses for their staff in order to take advantage of these incentives, the provider may not opt-out of continuing to pay their staff at least the same wages. I feel like its just more income I have to claim and pay taxes on. You can use it for free during a 30 day trial period. Programs that close temporarily during the 12-month grant period due to inactive status (including inactive status pending an investigation) will have their payment frozen as of the date that the program became inactive in LEAD. Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. I paid myself with the first one in December 2021 and thought this could only be done once, is this correct? No, lead agencies cannot use their ARP Act stabilization set-aside funds to cover family copayments or tuition. EEC will work with programs in determining what would be acceptable documentation to support the expending of grant funds and help programs determine how to start collecting this documentation as they use grant funds. Attestation: You have attested, when open and providing services, to implement policies in line with guidance and orders from state and local authorities and to the greatest extent possible the Almost. WV DHHR BFA Division of Early Care and Education is pleased to announce the availability of child care stabilization payments from October 2021 through September 2023 for child care providers that meet . The definition of what counts as income for WIC is determined at the federal level, and payments from child care stabilization funding would generally count as income. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Applications need only request the minimum information necessary to make the subgrants and meet the federal reporting requirements. 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. Some activities would be clearly unallowable like using CCDF to pay for teachers employed by the schools during the school day when the school is in session, but many circumstances in the COVID-19 context are more nuanced. Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. Programs should contact an accountant or tax professional to understand more about their particular tax situation and how this guidance applies to their specific business. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. Any program that has closed permanently is not eligible to receive continued grant funding. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. Without a waiver in accordance with 45 CFR 98.19 (covering requests for temporary relief from requirements), OCC does not have the authority to provide an extension of the CCDF obligation and liquidation periods. 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. Allowable changes to the tribes definition could include children who are tribal members, whose membership is pending, who are eligible for membership, and/or are children/descendants of members. Child care programs may not decrease an hourly employees pay rate but are allowed to decrease the employees hours in a given week. It is important that Lead Agencies have a plan in place to perform essential functions and achieve programmatic continuity during and after an emergency or disaster for families receiving CCDF benefits. 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. Stay tuned for additional updates on this page. If a child care provider intends to cover an individuals family subsidy co-payments, they must use funds other than those from EEC. Depending on a lead agencys licensing and health and safety rules, Head Start and Early Head Start programs may meet the criteria to be considered eligible for ARP Act stabilization subgrants. Click Log in on the desired Program to go to that Programs EEC ARPA grants page. If you would like to continue helping us improve Mass.gov, join our user panel to test new features for the site. These funds are designed to support the child care market as a whole by covering business related expenses. A: Pay yourself first. 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. 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. Per CCDF regulations, assets can be self-certified by a member of the household. Child Care Counts Call Center hours are 8 a.m.-4:30 p.m. M-F. Lead agencies do not have to require additional information at the time of the application as part of the certification process. 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. Directors, owners, administrators and/or designated fiscal staff members can access the reporting tool . 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. States and territories must use at least 90 percent of their ARP Act stabilization allocations for subgrants to qualified child care providers, and tribes must use at least 80 percent of their allocations for subgrants. The provider can indicate the preferred method in LEAD. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. Retaining documentation to support each expenditure (i.e. 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. OCC would presume any decreases in spending on child care services for eligible individuals below the amount that would have been spent under tribal law and policies in place of the date of enactment of the ARP Act (March 11, 2021) to be supplantation. 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. January 10, 2023. You can pay yourself and then give him a bonus. The Ohio Department of Job and Family Services (ODJFS), Office of Family Assistance, was approved through the State of Ohio Controlling Board and Legislative Appropriation to spend these federal stabilization relief funds. 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). The use of home visiting services to refer/connect children to early care and education services is not by itself a sufficient connection to non-parental child care services to justify the use of ARP Act stabilization funds (or other CCDF funds) for home visiting services. OCC will review construction and major renovation applications to make sure that the use of ARP Act stabilization funds for construction or major renovation will not result in a decrease in the level of child care services provided in the service area. ATTENTION: Announcing the ARP (American Rescue Plan) Act 2021 Child Care Stabilization Payments. Obligation and liquidation information for regular CCDF funds is described in the instructions to the ACF-696 and ACF-696T CCDF expenditure reports. Tribal lead agencies should develop a process to verify the assurances while collecting the information to report on use of funds and data elements about the subgrants and subgrant recipients. Below is an additional series of questions and answers about the Stabilization Grant. No, a program that permanently closed after 3/11/2021, is not eligible to receive an ARP Act stabilization subgrant. Child Care Stabilization Grant Questions and Answers. Q: How do I find out where to apply for this grant? Lead agencies are encouraged to include center-based and family child care programs, as well as programs that serve school-age children. 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. U.S. Department of Health & Human Services, Administration for Native Americans (ANA), Administration on Children, Youth, and Families (ACYF), Office of Child Support Enforcement (OCSE), 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. 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