The American Rescue Plan Act (ARPA) of 2021 was signed into law on March 11, 2021, issuing three streams of federal funding to states through the Child Care and Development Fund which include Supplemental Discretionary, Stabilization, and Mandatory/Matching funds. Q: If I pay my assistant with the grant, do I still have to pay taxes on it? 3 0 obj
A: Because if you pay yourself you will have more money left over in your pocket after paying the taxes. 9EJH-E*!PPRs&-L\1%gh7XXjZ/ Can I still receive the Stabilization grant? We have received grants from our city and our county. A: The PPP and EIDL programs are administered through the Small Business Administration. You can pay yourself and then give him a bonus. The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. Original URL . The portion that she uses for businesses expenses can be deducted from her taxable income, but the other half cannot, and she will need to pay taxes on that amount. Q: I am on the Food Program and I spent $100 a month for food, but am only paid $68 from the Food Program. *A f$IU*HT7aAA WR S@(>v6Cv MM&@REumMT O&8 l)mxEBS~1"mk *7k=zbe=eV=YH !8~XRGTTU`=2_2m\mj4GG] G You must report as income the reimbursements you received from the Food Program, with the exception that any reimbursements for your own children are not income. The two-year grant period is scheduled to end in September 2023, meaning eligible employees may receive . The same answer would be for a patio or driveway or any outdoor play space. In South Carolina, these stabilizations grants are called "SC Building Blocks". When will I be notified of the new monthly grant amount that is effective October 1, 2023? Help is on the way! Example 2: Provider uses full amount for business expenses Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. Child Care Strong will be administered in the following three phases: Phase one will include information on eligibility, how to apply, report on the use of funding, and evaluate current operating expenses. How much will my daycare get from the childcare stabilization grant? How do you determine your salary? Q: What criteria is my state using to approve the Stabilization grants? Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? A: If you are incorporated and are being treated as an employee of your corporation, then the corporation will report the grant as income. Phase 4 of the Idaho Child Care Grant provides funding for child care providers in Idaho to ensure they are able to remain open and caring for children. Image credit: https://californiahealthline.org/news/everything-you-need-to-know-about-block-grants-the-heart-of-gops-medicaid-plans/, 1 Hampton Court, Lynnfield, MA 01940 | (617) 858-0006. These include the Child Care Stabilization Grants, SBA forgivable loans, new child tax credit, what's deductible in the era of COVID, calculating your Time-Space% if you have been closed, and more. Q: On one slide it says that the PPP and EIDL programs are not taxable income. Is there a limit to the number of programs that will be funded? No! Child Care and Development Fund (CCDF) Home Visiting; . Find Stabilization Grant Applications for your State or Territory. 2. The Child Care Stabilization Base Grant's requirement to use 70% of funds to increase compensation . How am I doing that? Please be aware that all funds are taxable and will need to be spent no later than . 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]. Is the child care stabilization grant taxable? On April 9, 2021, the Delaware Department of Health and Social Services and the Delaware Department of Education announced that the Delaware Early Education and Child Care Stabilization Fund will provide $66,752,816 in direct grants to support eligible early child care professionals across Delaware. Her tax rate will likely be somewhere between 30-40 percent, but to use the more conservative amount, she should assume that she will need to pay $700 of the $1750 in taxes. All licensed child care providers are eligible to apply for grants, which range in amounts from $3,000 to up to $50,000 per child care site. Q: Can I get the grant even if I dont have any helpers? Grant funding amounts and distribution schedule. 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. ?y-|G1H3/_|/I'>_|!P,0ZE2:PTon_h In almost every situation, a provider will benefit financially from these grants even after taxes. Q: If I dont use receipts to calculate my food expenses, isnt the calculation a wash? It doesnt matter if you havent lost any children. Q: Can I claim Social Security on my ex-husband? Your state may or may not see this as a major improvement. Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. See how Compt can help you and your employees utilize these federal funds: Schedule a Demo: Our customers have figured out how: lifestyle spending accounts! Q: Do I have to take out payroll taxes to pay myself if Im an LLC or does every provider who is not incorporated still have to deduct from the check before paying ourselves? Q: If my husbands is disabled and collects Social Security Disability Insurance, will it change to regular Social Security when he reaches age 70? For most providers, this would be about 30-40% in taxes. If you are an employee, your employer is withhold Social Security/Medicare taxes and sending them on to Social Security quarterly. The purpose of the guidance is to help states quickly distribute the stabilizations funds to protect and support the existing child . But, you can pay yourself with the grant money and then buy a new air conditioner. You can use it for free during a 30 day trial period. / Blog / General / child care stabilization grant taxable. A: Each state has its own rules about this. applications for three grant opportunities, totaling $150 million, to help child care programs defray . The application process is straightforward and designed to deliver grant funds directly to Oklahoma child care programs. The purpose of the child care stabilization grants is to support child care centers and home-based child care providers to stay open or reopen. In this blog, Anna Mercer-Mclean details how she has utilized funding to increase salaries and benefits for her employees and her strategies to sustain providing ECE professionals their worth. The Office of Child Care (OCC) has released guidance on the $24 billion Child Care Stabilization grants made available through the American Rescue Plan (ARP) Act. Email Us at: providerhelp@childcaresolutionscny.org. We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. Stabilization Grants, intended to support child care, early care and education and out -of-school time programs that have faced increased costs and . A: No. Under federal guidance, this clearly language clearly applies to a family child care provider, even if she has no employees. Child Care Grant: Phase 4. A concrete slab in the backyard used for basketball, skating, etc.? For all of the above answers that were No, you can still pay yourself and then use the money for these purposes. A: Dont reduce your business expenses to show a larger profit, even if that might slightly increase your Social Security benefits. A: Colorado says they encourage providers to give 50% to parents. Q: Can I pay myself any amount? oRT@ 66V'aNAS\u8g<05!rzf7M- (bw1RK51 wOffHg]tJ}%NaiIrIV.y3*2w@LIGFIm(IsMv 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. Provider As household income is low enough; she may only owe the 15 percent in social security and Medicare expenses and can keep $2,975 for any use. A: Its totally up to you how long you want to remain in business or when you want to close. A: Yes, deduct the time-space% of this cost. Or call the OCFS Stabilization Help Line: (844) 863-9319. Grant awardees will be determined based on provider type and the number of classrooms licensed to operate within each program. +|>Pv
o+$^1-{z(*EW~l3Md Y{'m"7E:OeegN$d8=Jby&afJISI. Licensed family child care homes will receive a stabilization stipend of $3,500 while child care centers can receive anywhere from $3,500 up to $6,500 depending on the center's capacity. <>/Metadata 2634 0 R/ViewerPreferences 2635 0 R>>
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If you received any other phase of the Idaho Child Care Grant, you may still be eligible for this fourth grant. Instead, start making contributions to your IRA. The plan includes $24 billion in child care stabilization grant funding for states, territories, and tribes to distribute within their state using the Child Care and Development Grant (CCDBG) formula. Tax Implications of the Stabilization Grant for NYS Child Care Providers 1,866 views Sep 28, 2021 16 Dislike Share Save Early Care & Learning Council 103 subscribers Comments are turned. These funds give them a lifeline at the perfect time. A: The cost of any item that is used exclusively for your business can be deducted 100%. State tax rules apply. Can I add the attic space in my time-space% calculation? No. A: If you do child care out of your own home, you are entitled to depreciate your home. 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