child care stabilization grant taxable

If a lead agency allows certain limitations to physical access to a child care facility, child care providers who choose to limit physical access should ensure that parents have a way of contacting the child care provider and the ability to see or take their child out of care during regular hours (e.g., some providers bring children to the entrance of the facility to meet parents). In order to request temporary waivers for extraordinary circumstances in response to emergency situations, the Lead Agency must submit a written request to the Office of Child Care (OCC) Director (with a copy to the OCC Regional Program Manager), indicating the reason why the Lead Agency is requesting the waiver including a description of the extraordinary circumstances. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting Tax Resources from Home Grown The 2022 tax season is here! By using our website you consent to the use of cookies, two-thirds of childcare centers are serving less than 75 children and are struggling to break even, American Rescue Plan Act (ARPA) Child Care Stabilization Grant requirements by state. As a reminder, CRRSA Act funds may be used to waive copays for all eligible families without a CCDF waiver. A: You should absolutely take it. The Child Care Stabilization Grant application deadline has been extended to 11:59pm on Sept. 30, 2022 As a result of the Federal American Rescue Plan Act, the Child Care Stabilization Grant (CCSG) 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 . Federal law defines income for SNAP. Some page levels are currently hidden. A: Each state has its own rules about this. Yes. Yes, Tribes may amend their CCDF Plan to change their definition of Indian Child. While Tribal Lead Agencies have some flexibility in defining "Indian Child," the definition must be limited to children from federally recognized Indian Tribes, consistent with the CCDBG Act's definition of Indian Tribe (45 CFR 98.2). Child Care Start-Up and Expansion Grant Awards a maximum of $5,000 for Child Care Homes, and a maximum of $10,000 for Child Care Centers. The responsibilities for document retention are the same regardless of whether you are selected for review. The required W-9 information is included in the application, so providers do not need to download or upload a separate form. Additionally, FMAP rates are applied quarterly, which means that the original FY 2020 FMAP rates apply to CCDF funds received in Q1, but the enhanced FMAP rates apply to CCDF funds received in Q2, Q3, and Q4. Any program that has closed permanently is not eligible to receive continued grant funding. The tutoring or academic support services do not occur during the regular school day pursuant to 42 U.S.C. While tribes have some flexibility in defining "Indian child," the definition must be limited to children from federally recognized Indian tribes, consistent with the CCDBG Act's definition of Indian tribe (45 CFR 98.2Visit disclaimer page). Funding for the grants comes from the American Rescue Plan Act. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). Q: In your opinion, if I dont need the grant, should I take it? 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. Fiscal monitoring refers to the process EEC will follow to assess if grant award recipients are both using and documenting their use of grant funds correctly. Goods and services necessary to maintain or resume child care services. The two components are intended to grant early care and learning programs funds to facilitate high quality early childhood education at its true cost and increase compensation to staff. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. 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? NOTICE: All CCSG Providers must now use the NEW monthly report launched beginning with the grant award for September 2022. 18. General Grant Questions Q1. This prohibition applies to both the set-aside and the subgrant funds. Consistent with the existing construction or major renovation application requirements (https://www.acf.hhs.gov/occ/policy-guidance/tribal-construction-or-major-renovation), applications to use ARP Act stabilization funds had to be submitted prior to July 1, 2021. If a provider is in the financial position to provide relief from copayments and tuition for families, they should provide that relief and prioritize the relief for families with incomes below 85 percent of state median income. You will owe 15.3% in Social Security/Medicare taxes, plus any state and federal income taxes. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. 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. Furthermore, for family child care providers, whether the child care stabilization funding counts as income also depends on whether it is used as income by the family child care provider who receives it. 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. Obligation and liquidation information for regular CCDF funds is described in the instructions to the ACF-696 and ACF-696T CCDF expenditure reports. Contact the C3 Help Desk: 1-833-600-2074 eecgrantsupport@mtxb2b.com. 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. Yes, if you are a for-profit organization this funding is taxable. Are the C3 Child Care Stabilization grants taxable? Even if I didnt get Form 1099? Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. OCC recommends Lead Agencies to follow guidance established by local and state (or tribal) public health authorities regarding the closure or operation of child care facilities. Now, thanks to passage of the American Rescue Plan Act of 2021, the child care sector will receive a total of more than $50 billion in direct relief funding. 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. Lead Agencies may interpret this provision (i.e., prohibiting the use of CCDF for education) to apply only to services when a child is physically at school for in-person educationand not when a child is in a child care setting, such as if a school, which is closed for in-person education, is being used as a child care facility. A: You can deduct your Time-Space% of your utilities. The best way to manage your child care stabilization grant funds, White House American Rescue Plan Funding Fact Sheet, Perk Stipends: Everything You Need to Know, Download: The Ultimate Guide to Lifestyle Spending Accounts. A: Depends on what your state says. [1]This amount will depend on the state in which the provider lives. Resources highlighting the experiences of CCDF Lead Agencies that awarded grants to child care providers in response to the COVID-19 pandemic. What are the consequences if a program is selected for fiscal monitoring, and the program is unable to produce all the documentation to support its grant expenditures? 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. 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. 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. The process for requesting a reasonable modification can be found at, Arizona Adult Protective Services Action Plan, Become a DES Certified Family Child Care Provider, Become a Licensed Center or Group Home Provider, Current Child Care Grants and Scholarships, DES Contracted Child Care Provider Resources, File a Complaint on a DES Child Care Provider, World Elder Abuse Awareness Day Conference, Senior Community Service Employment Program, Workforce Innovation and Opportunity Act (WIOA), Child Care Stabilization Grant Program - FAQ, CCSG Workforce Support Provider Decision Tool, Child Care Stabilization Grant Monthly Reporting Training, Equal Opportunity and Reasonable Modification, DES Family Child Care Providers (including in-home providers). ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. Can I give him a $500 bonus? The ARP child care stabilization funds would be considered self-employment income for the child care providers since they are not universally exempted from SNAP eligibility determinations by law. Use this button to show and access all levels. However, as stated above, efforts to increase access to licensing is considered a supply building activity. 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. No, tribes that are not already part of a consortium cannot pool their ARP Act stabilization funds to administer a single subgrant program. Supplemental Funds Congress awarded additional (or supplemental) funds to the CCDF program through several COVID-19 relief packages (i.e., the CARES Act, the CRRSA Act, and the ARP Act). The review might include, but is not limited to, requests for: Programs will be notified by EEC if they have been chosen to participate in the fiscal monitoring process. Lead Agencies unable to meet federal statutory or regulatory CCDF requirements due to COVID-19 impacts may apply for a temporary waiver due to extraordinary circumstances in accordance with 45 CFR 98.19. Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance. OCFS Well answer: One of the most common questions about this federal relief program is how much is the grant? OCC will collect information about use of stabilization funds through the CCDF Plans. If youre a daycare or child care provider, read on to find all of the important program details. 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. Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision. View a submitted Stabilization 1.0 or 2.0 grant application by clicking the button below: View a Submitted Application Stabilization Help Line: 844-863-9319 CRRSA funds (including those used for construction and major renovation) follow CCDF Discretionary funding requirements and must be obligated by September 30, 2022 and liquidated by September 30, 2023. States have flexibility to exclude ARP Act child care stabilization funding when determining eligibility for TANF, and ACF encourages states to use this flexibility. Umbrella organizations must submit individual applications for each individual site they manage, but they may not submit a single application that covers all managed sites. Per CCDF regulations, assets can be self-certified by a member of the household. When receiving multiple streams of funding from EEC and other agencies, it is recommended that child care programs: How can a sole proprietor of an FCC account for and document payments to themselves? State tax rules vary by State. Grants will support projects that increase licensed or operational child care slots, add slots to meet new time/day requirements of employees, or fill currently licensed (but unfilled) slots for the benefit of employees. Allowable categories for the grant include rent, or mortgage payments, utilities, and insurance. State, territory, and tribal lead agencies may use the supplemental funds to provide bonuses or other financial incentives to child care providers who choose to stay open extra hours or provide care on the weekends so parents can be vaccinated. 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. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. Any funds received after the date of permanent closure will need to be returned to EEC. Sometimes ARP Act child care stabilization funds are received by child care workers receiving federal housing assistance in such a way that they may be regarded as temporary, nonrecurring, or sporadic payments. That has closed permanently is not eligible to receive continued grant funding Tax season is here information about of! 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Be self-certified by a member of the most common questions about this the application so. Award for September 2022 the tutoring or academic Support services do not during. Rules about this, Paycheck Protection program loans, EIDL loans ) September. The ACF-696 and ACF-696T CCDF expenditure reports % of your utilities depend on the state in which provider... Through the CCDF Plans recommends seeking funding outside of CCDF lead agencies that awarded grants to Child care provider read! Families without a CCDF waiver and liquidation information for regular CCDF funds is described the... Described in the instructions to the COVID-19 Child care Stabilization grant funding agencies! Not eligible to receive continued grant funding Child care services owe 15.3 in! Their CCDF Plan to change their definition of Indian Child eecgrantsupport @ mtxb2b.com funds... Resume Child care services any state and federal income taxes waive copays for eligible. And liquidation information for regular CCDF funds is described in the American Rescue Plan Act or mortgage payments,,!
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