child care stabilization grant taxable

Tribal lead agencies that offer stabilization subgrants to child care providers outside of tribally operated centers are required to implement an application process. You just pay yourself because you are the owner. You will always be better off financially after taking a grant, even if it increases your taxes. Under federal rules, lead agencies must ensure that parents of children receiving Child Care and Development Fund (CCDF) assistance have unlimited access to their children while they are attending child care. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. 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. What is fiscal monitoring as it relates to this grant program? Costs claimed toward the grant must align with your business expenses reported in your federal taxes. The application indicates that funds can be used to pay for previous program expenses. 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). 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. In total NYS has nearly $1.1 billion in funding under this program.

However, if the family is no longer eligible due to other eligibility requirements (e.g., age of child, working, or attending training/education) at redetermination, their subsidy may be terminated. However, it would be allowable for a Lead Agency to use the supplemental appropriations under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136) or Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) to pay for both a closed provider and a new temporary replacement provider; the CARES Act and the CRRSA Act specifically say that the supplemental funds can be used to provide continued payments and assistance to child care providers in the case of decreased enrollment or closures related to coronavirus, and to assure they are able to remain open or reopen. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. 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 . This only applies to Tribal CCDF Plans and not to tribes with approved Public Law 102-477 Plans.

; Lead agencies that choose to send applications directly to qualified providers or have providers access the applications through a private web portal still must post a copy of the application on their public website. To show payments from the business to the person, documentation may include: Records of self-payments of grant funds from the business should be consistent with personal records for tax purposes. If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. In each monthly submission, you will complete two sections: NOTICE: All CCSG providers must now use the NEW monthly reportlaunched beginning with the grant award for September 2022. These essential functions include (i) continuing payments to child care providers serving children receiving subsidies; (ii) provisions for extending eligibility re-determination for families; (iii) communication with the licensing agency to ensure that licensed programs receiving CCDF funds are safe and operational; (iv) assisting new enrollees or preparing for an influx of families who may need assistance; (v) implementation of a waiting list if the Lead Agency does not have one, as appropriate; and (vi) tracking families receiving subsidies impacted by the disaster. 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. Lead Agencies who receive ACF grants may not use grant funds for costs that are reimbursed or compensated by other federal programs. Section 103(d) of the American Taxpayer Relief Act amended the relevant statutory provision, 26 U.S.C. Income is a wholly different financial test from the assets test one could have very little income, but significant assets, and vice versa. All Rights Reserved. When considering changes to policies and program requirements, CCDF Lead Agencies have two main options for such changes: (1) Amend CCDF Program Requirements, through a Plan Amendment if Necessary, and (2) Apply for a Waiver for Extraordinary Circumstances, with subsequent Amendment if needed. When posting information, OCC recommends including details on how interested child care providers can contact the lead agency for more information on accessing and submitting an application. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? American Rescue Plan (ARP) Stabilization Funds. However, OCC reminds Lead Agencies that a waiver for extraordinary circumstances is only necessary if the change would not comply with federal CCDF requirements; otherwise, changes can be made through Option 1: amending requirements, through Plan amendments if necessary. Here is a link to the US Department of Labors webpage on UC benefits related to the COVID-19 outbreakVisit disclaimer page. 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. For example, a shared framework might involve using a common provider subgrant application, developing a shared model for estimating child care provider operating expenses and setting subgrant amounts, and coordinating outreach to eligible child care providers. Lead agencies may determine the process they use to award the subgrants and are not required to use their agencies official subgrant process. 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.

During the current public health emergency, these essential workers cannot work from home, and many of the regular child care arrangements for their children have closed. These funds will help early childhood and child care providers keep their doors open and continue to provide these essential services that are critical for a strong economic recovery and a more equitable future. More information is available from theWhite House American Rescue Plan Funding Fact Sheet. CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. You may view payment status by logging in. (45 CFR 75.2Visit disclaimer page). If you did give parents a discount, the amount you gave as a discount is not a business expense. Frequently Asked Questions will be updated on this page. So, this is not a requirement in Colorado. The ARP Act Visit disclaimer pagedoes not exempt the ARP child care stabilization subgrant funding from taxation. Lead agencies have the flexibility to determine the documentation a child care provider must submit to confirm their current operating expenses and are encouraged to accept a variety of types of documentation and limit burden on applicants. 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. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? 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. The CCDF final rule at 45 CFR 98.16(aa) requires the Statewide Disaster Plan (or Disaster Plan for a tribes service area) to incorporate guidelines for continuation of child care subsidies and child care services. 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 should describe how the child care sector will be maintained while using the ARP Act stabilization funds for construction or major renovation. The terms included in the Act are broad, and lead agencies have the flexibility to define them. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding.

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. The following definitions of program terms shall be used in interpreting WV Child Care Stabilization Grant Program policy: 1.1.1.

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.

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. At the end of June, Minnesota's Legislature created Minnesota's Child Care Stabilization Grant Program, which began in June 2021 and will last until June 2023. For example, providing gift cards to child care providers may be allowable if the cards relate to an integral part of the child care program. If 30 percent of her home is used for the child care business, then only 30 percent of the grant funds used to pay her mortgage/rent can be deducted.

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