child care stabilization grant taxablechild care stabilization grant taxable
The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification. The CARES Act and the CRRSA Act do not address the minimum 12-month eligibility period for essential workers; accordingly, regular CCDF/CCDBG rules apply. CRANSTON, RI - The Rhode Island Department of Human Services (DHS) is pleased to announce a new grant program designed to support and stabilize Rhode Island's child care industry. Q: Will getting this grant put me in a higher tax bracket? Q: Can I use the Stabilization grant for: Pay my employees life insurance premiums? Q: Where does the grant go on Schedule C? If you do so, this will help support the work I do helping family child care providers be more successful as a business. Other investments to improve program quality such as supplies, curriculum, screening tools, etc. Child Care Stabilization Grant Questions and Answers. The answer is yes, these funds are taxable. See the video here: [video width="1390" height="1000" mp4="http://tomcopelandblog.com/wp-content/uploads/2022/02/Questions-and-Answers-about-Stabilization-Grants.mp4"][/video]. You can use it for free during a 30 day trial period. 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. Funds received prior to the date of closure may be used for approved expenses. The Child Care Relief Fund Technical Assistance Team can be reached by emailing CCReliefFunds@trelliscompany.org or calling 1-833-613-3192. Can I reallocate some of this money so I dont have to pay income taxes? Absence due to the need to care for a family member or an illness; Any reduction in work, training or education hours, as long as the parent is still working or attending training or education; and. Effective July 2022, the CCSG Workforce Amount is awarded to recipients of the CCSG who certify they will use the amount for personnel costs including payroll/wage supplements, bonuses, and employee benefits. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? dollars for the Child Care Stabilization Grants These grants are to provide financial relief to family child care providers and child care centers to cover business costs associated with COVID-19 and to help stabilize their operations This represents a substantial financial benefit to all child care programs! OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. 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. When considering the size of a child care program, lead agencies should use enrollment and/or licensed capacity rather than attendance. We encourage family child care providers to contact a tax advisor about what should and should not be reported as part of ones AGI. Can a sole proprietor of an FCC use the grant funds to pay expenses that are associated with the program but are also inclusive of normal household bills? After September 30, 2022, no additional CCSG awards will be made. In some cases, funds used to cover operating expenses may be exempt from taxation. No. Childcare isnt just a family issue, its a business issue. 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 Start-up & Expansion. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. This may include additional eligibility criteria (that apply only at redetermination) or adjusting the graduated phase-out levels to help the lead agency manage the population served and ensure that those most in need are receiving services. A: If you dont spend all of the grant money on items used 100% for your business, it will increase your business profit. FCC programs do not have to serve 10 children at the time of application. The provider can indicate the preferred method in LEAD. Lead agencies may use their stabilization fund set-asides to carry out activities to increase the supply of child care, especially for historically underserved populations. Can I give him a $500 bonus? 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. Yes, Lead Agencies may pay child care staff based on a childs enrollment rather than attendance. Dental crown not covered by insurance? All programs will receive a 1099 for grant funds received. No, child care providers cannot use ARP Act stabilization funds to cover family copayments or tuition. The application process and distribution structure varies from state to state, so check your local government website to confirm application deadlines and important dates. But childcare providers have been really struggling to stay afloat, and many have resorted to taking on personal debt to get by or temporarily closing altogether. This could include posting a PDF copy or screenshots of the applications. OCC encourages tribes to coordinate with states and tribes regarding tribally affiliated children who do not live in the tribal lead agencys service area. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Lead agencies do not have to require additional information at the time of the application as part of the certification process. 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. 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. No, child care providers receiving subgrants are not required to have or provide a DUNS number or UEI. OCFS is prioritizing workforce support for child care staff by requiring that at least 75% or the Child Care Stabilization Grant 2.0 for Workforce Supports be spent on workforce support expenses. 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? 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 (. Yes, tribal lead agencies may use ARP Act stabilization funds for an existing multiyear construction project. Child Care Relief Funds. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. Thus, we suggest that, if any Lead Agency adopts this interpretation, the agency should check eligibility at the time of termination of benefits to determine whether the minimum 12-month eligibility requirement applies or not. Q: Is money I received from the Stabilization grant taxable income? This means you will pay some additional Social Security taxes, but it also means your higher profit will potentially increase your Social Security benefits. The supplemental appropriations under the CARES Act and the CRRSA Act can be used, among other purposes, 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. Now you are on the Dashboard page, scroll down to the Recertification Section. The definition of what counts as income for the EITC is determined at the federal level and includes all income reported to the IRS as part of a tax filers Adjusted Gross Income (AGI). Emergency Responseincludes FAQs about temporary, short-term measures and existing flexibilities available to Lead Agencies under CCDF that may be taken during the current public health emergency in response to COVID-19. Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. 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. 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. However, lead agencies do have flexibility in defining unlimited access, and we are deferring to lead agency interpretation, as long as it is recognizably reasonable to the average person, as to how to maintain this policy while balancing health and safety concerns related to the Coronavirus Disease 2019 (COVID-19) public health emergency. No. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. 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. 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). Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. Contact your state to get the answer. However, because other ARP funding explicitly for Head Start programs is available and Head Start programs have continued to receive federal grants during the pandemic, lead agencies should only include Head Start and Early Head Start programs in the stabilization subgrants under limited circumstances. CCDF Lead Agencies have the flexibility to decide whether to disregard Unemployment Compensation (UC) benefits under the CARES Act or the CRRSA Act as income or resources when determining CCDF eligibility and family co-payment amounts. The lead agency may also choose to use funds provided by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) ActVisit disclaimer page to cover copayments for all eligible families. 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. 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. Get more information about KidKare. These funds are made available to Arizona through the Child Care and Development Fund (CCDF) relief funding appropriated through The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2). Carefully tracking payments is an important and helpful way to help minimize compliance risks. These programs were extended in the CRRSA Act. OCC notes that the availability of some program funds, such as PPP, have been inconsistent and the extent to which child care providers can access them may be limited. Costs claimed toward the grant must align with your business expenses reported in your federal taxes. 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? Not all applications are guaranteed to be approved. At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. Learn about provider eligibility for the COVID-19 vaccination. A Plan amendment should not create any delay since the Lead Agency may proceed with implementing the program change, and subsequently submit the amendment within 60 days. 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. The American Rescue Plan Act (ARPA) Child Care Stabilization Grant, which some call the daycare grant, is a federal financial assistance program recently launched by the Office of Child Care to provide $24 billion of economic relief to child care programs impacted by the COVID-19 pandemic across the country. For example, when each payment is received: What is the Expenditure Tracker tool and how can it be used? Child care services with a tutoring or academic support component that are funded through CCDF subsidies must be paid in accordance with the Lead Agencys CCDF payment rates. For more information, visit the CCSG FAQ section. Additional information is available at: https://www.irs.gov/coronavirus/employer-tax-credits. The tax implications of the grants depend on several factors, namely, how the provider uses the funds, the providers household income, and possibly the state in which they live. The BIG Program was specifically designed to support businesses who endured lost revenue due to the COVID-19 public health emergency. IMPORTANT: Recertifications for C3 funding between the months of July 2021 and June 2022 need to be completed no later than Monday. The lead agency may also choose to use funds provided by the CRRSAVisit disclaimer page to cover copayments for all eligible families. Funds are in place so every eligible program can receive one grant per facility/site. Q: My business is an S Corporation. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning . And while many child care providers have opened back up, its been anything but easy. The child cannot receive academic credit towards graduation solely for participating in the tutoring or academic support itself, pursuant to 42 USC 9858k(b)(2) and 45 CFR 98.56(c)(2). 9858k(b), and 45 CFR 98.56(c) of the CCDF regulations prohibit spending CCDF for any service provided to students enrolled in grades 1 through 12 during the regular school day. KidKare is a comprehensive record keeping program that includes an accounting section that allows you to keep track of all your income and expenses. When and where will a copy of the slide deck from the C3 training sessions be available? Therefore, lead agencies are strongly encouraged to use that discretion to disqualify child care providers who have had their license or ability to participate in the subsidy program revoked or who are under investigation. Does the plan for COVID-19 testing at child care facilities adhere to FDA recommendations (i.e., FDA-authorized equipment or certified operators administering and interpreting the tests)? Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention. ACF strongly encourages that lead agencies disregard this funding when determining eligibility for CCDF. The Child Care Workforce Stabilization grants supply funding to help child care providers recruit and retain qualified employees as the industry recovers from the pandemic. 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. Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. 9858k(b)(1) and 45 CFR 98.56(c)(1). The law specifies that child care providers may use their child care stabilization funds on the following allowable activities: Personnel costs Rent, utilities, facility maintenance or improvements, or insurance Personal protective equipment, cleaning and sanitization, or training and professional development related to health and safety In addition, states may use CCDF to subsidize child care services for school-age children (up to age 13) that provide care and supervision in situations where schools are not otherwise providing in-person instruction and an outside source pays for instructional services that are delivered in-person in the child care setting. Information about stabilization grants including policy guidance, a timeline, and frequently asked questions. Yes, the ARP Act requires the lead agency to make available on the lead agencys website an application for qualified providers that includes certifications the child provider, for the duration of the subgrant, will implement certain health and safety requirements and guidance, pay full compensation to staff, and, to the extent possible, provide relief from copayments and tuition for families in their care (section 2202(d)(2)(D)(i)Visit disclaimer page). Child Care Workforce Appreciation Bonus - Now Available Q: If I pay myself and then use some of the money to purchase items for my business, can I still deduct this as a business expense? Pursuant to the CARES Act language, CARES Act funds can be obligated in fiscal year 2020 or the succeeding two fiscal years (by September 30, 2022). The CRRSA Act funds are silent to the obligation and liquidation periods. 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. 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. State, Territory, and Tribal Lead Agencies have broad flexibility to operate the CCDF program and have a number of options within federal statute and regulation to adapt policies in order to maintain continuity of services for families affected by a disaster. Providers who received an initial disbursement will receive email notifications via NJCCIS when they are eligible to recertify, this process will begin in December 2022. Private information such as social security information, home addresses of employees, fingerprint records, drivers license numbers, medical information, credit card information, bank account numbers of employees, etc. The C3 grant funds may be used for wages and benefits for child care program personnel, including compensation for any staff supporting a child care center or family child care providers and their employees. 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. It is also important for providers to know that not all business expenses are fully tax deductible. Yes, Lead Agencies can provide hazard pay to providers that remain open during COVID-19. Tribal lead agencies may choose to award all of the ARP Act stabilization subgrants to their tribally operated centers. Example 1: Provider pays herself the full amount. 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. Section 658E(c)(2)(B) of the Child Care and Development Block Grant (CCDBG) Act, 42 USC 9858c(c)(2)(B), and 45 CFR 98.31 of the CCDF regulations require CCDF lead agencies to have in effect procedures to ensure that child care providers receiving CCDF funds afford parents unlimited access to their children and the providers during normal hours of operation and whenever the children are in the care of the provider. Not a federal spending deadline for programs receiving the C3 training sessions be available is received: is! Support businesses who endured lost revenue due to the date of closure may be used, curriculum screening... The obligation and liquidation periods other investments to improve program quality such as,. 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