child care stabilization grant taxable

Federal guidelines require that child care programs cannot reduce an employees hourly rate while participating in this grant opportunity. (42 USC 9858c(c)(2)(N)(iv); see also 45 CFR 98.21(b)) This safeguards childrens continuity of care as parents move towards economic self-sufficiency. ; 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. 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. The Tribal Lead Agency must request and receive approval from ACF prior to using CCDF funds for construction and major renovation. If the Lead Agency chooses to terminate assistance before the end of the eligibility period, the Lead Agency would be required to offer a minimum of 3 months of continued assistance. Continued non-compliance puts you at risk of losing your CCSG award. Additional information is available at: https://www.irs.gov/coronavirus/employer-tax-credits. Help is on the way! 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 If there are payments not reflected in LEAD or the program has other questions, contact the C3 Help Desk at 1-833-600-2074 or eecgrantsupport@mtxb2b.com. 32% of employers have seen some of their employees leave the workforce due to the effects of COVID-19. 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. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. Tribal lead agencies must submit amendments to their current FY 2020-2022 CCDF Plan within 60 days of the effective date of implementation. Stipulations for what the funds can be spent on and how to properly report them. Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? However, the monthly design of grant funding is to ensure that programs have the stable cash flow for ongoing operational costs that adjusts to changing conditions (i.e., staffing changes). 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. Including additional categories of vulnerable children in the definition of protective services is only relevant for the purposes of CCDF eligibility and does not mean that those children should necessarily be considered to be in official protective service situations for other programs or purposes. 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? 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. Q: What impact will receiving this grant have on my Social Security benefits? Do programs need to spend all the grant funding each month? The EITC phases in with earnings and phases out with the greater of earnings or AGI. Extensive alteration of a facility such as to significantly change its function and purpose, even if such renovation does not include structural change. All Rights Reserved. A: No. Be open and currently serving children at time of application (this does not include temporary closures of 14 days or less). 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). Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. NOTICE: All CCSG Providers must now use the NEW monthly report launched beginning with the grant award for September 2022. Note that child care providers that are receiving stabilization subgrants from a tribal lead agency should be serving at least one Indian child, as defined by the tribal CCDF Plan. Can I give him a $500 bonus? Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? How much will my daycare get from the child care stabilization grant? Broaden the Lead Agencys definition of protective services to permit emergency eligibility as a temporary, short-term measure. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. FAQs under this heading discuss stabilization subgrants and supplemental funding in relation to Tribal-specific flexibilities. CCDF Federal matching funds are available to states, provided that states match those funds at the Federal medical assistance rate (FMAP). Programs in inactive status are not able to apply or recertify their stabilization grant while they are in inactive status, as only programs that are open to serve children are eligible for stabilization grants. The CCSG application is now closed. Self-employed FCC providers should keep separate accounts and records for business and personal finances. For example, CCDF funds could be used to give packages of gloves and masks to families with the understanding that these materials will be used when parents drop off and pick up children from child care. The provider can indicate the preferred method in LEAD. Q: Can I use this grant to pay myself? After an application is submitted, a confirmation email will be sent to the email address listed in the programs LEAD account profile. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . A: You can deduct your Time-Space% of your utilities. Supporting documentation should demonstrate that the purchase in question falls within at least one of the allowable use categories. Forthcoming guidance will comprehensively address use of the CCDBG Supplemental funds in the American Rescue Plan Act. OCC will not consider construction or major renovation applications for facilities that do not provide direct child care services to children. Minnesota's Child Care Stabilization Grant Program endeavors to provide child care providers with financial support to maintain operations and increase staff compensation. Directors, owners, administrators and/or designated fiscal staff members can access the reporting tool . Some states have decided to be very lenient in how they distribute funds, some have a rigid set of regulations, and some have yet to decide how theyll give out these funds. 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. If a program closes temporarily during the 12-month grant period due to inactive status, will the program still be eligible for the grant during that month? 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. 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. These are grants offered to child care providers as a part of the American Rescue Plan and are designed to help with operating expenses. ACF additionally recommends seeking funding outside of CCDF to increase testing capabilities for the broader community. 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. Yes, lead agencies can use funding from the administrative, supply-building, and technical assistance set-aside of up to 10 percent for states and territories and 20 percent for tribes to cover personnel costs associated with administering the stabilization funds, including term-limited staff. Providers are allowed to use the subgrant funds to continue to pay full compensation and benefits in order to meet the certification requirements. Please limit your input to 500 characters. 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). Effective August 2022, all CCSG Monthly Reporting of expenditures will be based on the seven categories listed below: Please review the CCSG Reporting Guide for more details. Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. The terms included in the Act are broad, and lead agencies have the flexibility to define them. While the guidance in this response focuses on how ARP stabilization funds impact the eligibility of child care workers for federal benefit programs, the same guidance would apply to funding from regular CCDF funds and supplemental funds provided under the CARES Act, CRRSA Act, and ARP Act, when the funds are used as stabilization grants or similar provider grants/stipends. Thank you for your website feedback! This session was presented during BUILD 2022 National Conference. If you do sign up, please use the referral code 0659. 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. Please note that any changes to a states definition of income to take advantage of this flexibility must be reflected in a CCDF plan amendment. 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). See the funding breakdown by state, tribe and territory, and more information about the grant on the White House American Rescue Plan Funding Fact Sheet. Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. The Expenditure Tracker is a template to help track the purchases/payments made using grant award funding. The $3.5 billion in supplemental CCDF CARES Act funding is subject to the same tax rules as regular CCDF funding. You can use it for free during a 30 day trial period. Providers can use the funds to pay prior program expenses incurred after January 31, 2020. Even if I didnt get Form 1099? To learn more about how to fill out W-9 information, check out this video to learn how to complete Form W 9. How many months of funding will a program receive? Yes, if you are a for-profit organization this funding is taxable. 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All CCSG providers must now use the referral code 0659 programs activities are connected. Prior to using CCDF funds for construction and major renovation recommends seeking outside! Testing capabilities for the Stabilization grant if I already received the Paycheck Protection program loan bonus your...

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