child care stabilization grant taxable

Legal non-licensed providers were not eligible for One-Time Supplemental Stabilization Grants. 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. We encourage family child care providers to contact their local SNAP officeVisit disclaimer page for more information. Almost two-thirds of childcare centers are serving less than 75 children and are struggling to break even. 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. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. Afterwards it costs $99.00 a year. Lead agencies may use regular CCDF, CARES, CRRSA(PDF), and ARP Act Supplemental CCDF Discretionary funds for direct child care services. Care provided in emergency situations should be of the highest quality that is reasonably practicable given the particular circumstances. Some child care businesses may qualify for tax credits to support paid sick leave while they receive a vaccine and recovery from any side effects. A lock icon ( Q: If someone takes the grant and decides they no longer want to be in daycare, will they have to reimburse the money received? Therefore, providers participating in their ARP Act stabilization subgrant programs may terminate an employee for cause during the subgrant period. The IRS has published information indicating that receipt of a government grant by a business is generally not excluded from the businesss gross income under the Federal Tax Code and therefore is taxable. You must claim grant funds in your business gross income. Providers may also consider using technological options that allow parents to check-in remotely, including the ability to see their child and child care provider in the child care setting. 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. State tax rules apply. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. Tribal lead agencies may determine which provider types to include in their stabilization subgrant programs, as long as those providers are eligible and qualified, as defined in the ARP Act, which may include limiting subgrants to tribally operated centers. 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. Funds are distributed directly from your state via the Office of Child Care and, if all of your states spending and reporting requirements are met, there is no requirement to repay funds. 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. The South Dakota Department of Social Services . For each month you receive the CCSG award, a monthly report is due by the last day of the month following your previous months expenditures. 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. Mass.gov is a registered service mark of the Commonwealth of Massachusetts. All Lead Agencies may use CARES Act or CRRSA Act funds for minor renovations, as described in 45 CFR 98.56(b), but only Tribal Lead Agencies may use the CARES Act and CRRSA Act funds for construction or major renovations. The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation for staff regularly caring for children did not apply to One-Time Supplemental Stabilization Grants. Enrollment Capacity Average Enrollment (Before and After Care, Summer Care) 7 Yes. Q: Can I pay myself in one lump sum or do I have to pay myself weekly or biweekly? It would be reasonable, for instance, for Lead Agencies to prioritize services for, or even restrict eligibility to, families with children who are unable to attend school in person because of closures or health reasons over families with children who are able to attend school in person, but opt not to. Lead agencies should balance the need to collect information necessary to ensure funds are being spent correctly and not overly burdening providers. 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. We remind Lead Agencies to develop emergency preparedness plans that contain guidelines for continuation of child care subsidies and child care services, which may include the provision of emergency and temporary child care services during a disaster, and temporary operating standards for child care after a disaster. Lead Agencies also have flexibility in treatment of regular UC benefits. Can I give him a $500 bonus? The purchase of such equipment may be more appropriate in circumstances where the child care provider will use it for additional technology-based learning or recreational activities in the child care program beyond virtual school instruction. Tribal lead agencies may set-aside up to 20 percent of their ARP Act stabilization funds for administration, supply building, and technical assistance. The Families First Coronavirus Response Act (Families First; P.L. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. No other family income will be affected, meaning you wont pay higher taxes on any non-grant income. Other funds are not within the scope of this review. This webinar for training and technical assistance providers was presented on June 24, 2021. A conservative estimate would be to assume 15 percent for social security/Medicare plus 15 percent federal income tax and about 10 percent for state and local income tax, for a total of 40 percent or $1,400. Absent a waiver, Lead Agencies must require these providers to meet health and safety requirements. However, adding plexi-glass barriers to an existing entry way or entrance would likely be allowable. 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. Paying a share of the ARP Act stabilization funds to another entity, including a bookkeeping firm, to apply for stabilization funding and assist with documentation as part of the grant management, is not an allowable use of the ARP Act stabilization funds. Lead agencies may determine how they monitor child care providers receiving ARP Act stabilization funds, including what types of documentation and reporting are required. If the family is still eligible at redetermination, they should receive another minimum 12-month eligibility period and should not be placed on a waitlist. Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. The Official Child Care Grants Assistance Portal for the State of Virginia. (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. The application period ended December 14, 2022. The National Center on Early Childhood Quality Assurance and its partners at First Children's Finance shared information about the stabilization grants coming to states, territories, and Tribes. Examples of changes that would require a waiver include exempting providers from some or all health and safety standards, health and safety training requirements, background check components; suspending annual inspections of providers; changing income eligibility to be higher than 85% of State Median Income; or changing the subsidy eligibility period to be less than 12 months. 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 . 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). So, this is not a requirement in Colorado. Lead Agencies are permitted to use funds for the establishment and maintenance of computerized child care information systems, including data systems. Each months report is due by the last day of the month for the previous month. This page is located more than 3 levels deep within a topic. Below is an additional series of questions and answers about the Stabilization Grant. The provider can indicate the preferred method in LEAD. Under 45 CFR 98.67(a), Lead Agencies shall expend and account for CCDF funds in accordance with their own laws and procedures for expending and accounting for their own funds. The limited exceptions where it might be appropriate to use ARP Act stabilization funds for home visiting include instances where there is a direct connection to non-parental child carefor example, providing stabilization grants to child care providers who deliver home visiting as an integral component of their child care program for children enrolled in the child care program, or using the set-aside to support home visiting services that provide resources and support specifically for family child care providers, or if the purpose of the home visiting is to provide mental health services for children in child care. If a lead agency chooses to provide stabilization subgrants to child care providers that are not licensed, regulated, or registered and have not previously received child care subsidies but are otherwise eligible to receive CCDF, for example relative providers, lead agencies are encouraged to collect additional details and documentation of operating expenses. 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