If they are present 24 hours a day, five days a week, that represents 120 hours that you can count. Q: We are a non-profit preschool facility in our church. Q: If I pay myself in order to make some changes that are not covered by the Stabilization grant, should I pay myself for the cost of the project, or is there some type of guidance I should use? A: You can count all the hours children are present in your home. You can use this amount with grant money. If the separate building is 40% of the size of the home, then deduct 40% of these costs. A: Social Security will look at your net income. If you are a sole proprietor (self employed), you do not take out payroll taxes before paying yourself. 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! A: Yes! How do I treat this on my taxes? Child Care Stabilization Grants The American Rescue Plan Act of 2021 (ARP Act) (Pub. A: No, you cant decrease wages or benefits to employees during the grant period. What if I am on payroll with my staff? A: If you do so it wont impact your 2020 taxes. Q: Can I deduct the business portion of any item in one year regardless of the cost? A: Each state sets its own criteria. Is this grant counted as income? Workforce Innovation Sustain Child Care Subsidy Operations Start-up & Expansion Paycheck Protection Retention of Child Care Staff Painting is a repair. You should amend your 2020 taxes and report it as income and pay taxes on the amended return. Q: Can I get the grant even if I dont have any helpers? Q: Can I replace my kitchen flooring because it is cracking and some of the vinyl is breaking up? A: You can count all hours that you work in your home, either caring for children or doing other business activities. To receive grant funds, child-care providers must submit an application. 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. You may use grant funds to pay for an accountant or financial advisor. Adhering to your states unique spending and reporting requirements for funds that are part of the grant through the Office of Child Care. Example 1: Provider pays herself the full amount. Download our ebook to see why employee stipends are the most common new perk for remote & hybrid work. Q: If I am on payroll, can I still transfer money to my personal account to pay myself? Q: When you give a bonus to your staff, do you treat the deduction the same as payroll deductions? Q: If I was closed because I had COVID and didnt have parents pay during that time, how do I record using some of the grant to cover the lost revenue? Q: Are the Stabilization grant requirements the same from state to state as to what I can use the money for? WHAT: The department's Early Childhood Division is using funding streams to support the health and sustainability of North Dakota's child care sector. Q: How do I find out where to apply for this grant? Help is on the way! A: No, that would probably be considered a major improvement. Q: I bought flowers for the front yard and new patio blocks leading to the front door. In this blog, Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the manner they deserve. This report provides a state-by-state overview of FFN policies and supports and highlights some examples of the ways in which states and local entities are supporting FFN providers who serve isolated families with low incomes. 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. Stabilization Grant Guidance FAQs. A: An employee can work fewer hours and that wont impact the grant. A: Write out a note that says, November 20th, 2021 paid Fred Jones $2,000 in cash to paint my daycare. Try to get him to sign it. My CPA says if it happens again I will face the hobby law. What is that law? If you are considered a hobby, you might not be able to deduct all of your expenses. Certificate of Registration: A statement issued by the Commissioner for a period of up to two years to a family child care home upon receipt of a self-certification statement Q: How do I create an emergency fund with this grant? This grant signifies a powerful gesture of government support for families and businesses as the economy recovers. COVID-19 Child Care Stabilization and Recovery Grants. A: Yes, deduct your time-space% of the cost in one year. Supporting Family Child Care to Prepare for Child Care Stabilization Grants, Help is on the way! Q: Does it matter how much income I made this year to use the Stabilization grant to pay myself? If you received any other phase of the Idaho Child Care Grant, you may still be eligible for this fourth grant. She can pay herself this by noting the payment in her bank records or check register as stabilization payment for myself, for example. endobj Q: If I pay my assistant with the grant, do I still have to pay taxes on it? The answer is yes, these funds are taxable. Are the C3 Child Care Stabilization grants taxable? A: Yes! Q: How can I build up my Social Security benefits before I retire when my profit has not been very high? Do any repairs count as an expense for my vehicle? You will report this as income and pay Social Security/Medicare taxes as well as federal and state income taxes on this income. Purchase of a swim spa for physical therapy, exercise, relaxation? Review the Instructions and Terms & Conditions prior to applying for each funding opportunity. You can deduct your food expenses either using the actual expenses method ($68 in your example) or the standard meal allowance method. [1]This amount will depend on the state in which the provider lives. Child Care and Development Fund (CCDF) Home Visiting; . Paying yourself involves nothing more than making a record indicating this. A: You could try to separate out these costs by comparing the square footage of the separate building with the square footage of your home. Q: Does going back to college count as hours? If so, the corporation must pay you with the grant money through your normal payroll process which means paying payroll taxes. p Example 3: Provider uses some of the grant to pay herself and some for business expenses. How to Use Child Care Stabilization Grant Funding to Support Your Home-Based Setting. % . Child Care Stabilization Grants Help Desk Support: 1-833-600-2074 eecgrantsupport@mtxb2b.com User Guide - Grant Survey Frequently Asked Questions Grant Requirement Supports: Family Child Care - Training for C3 Operational Grant requirements - YouTube Center-Based - Training for C3 Operational Grant requirements - YouTube You dont need to put it in the name of your business. Here are the answers to the many questions raised during the webinar. Can I give him a $500 bonus? Almost two-thirds of childcare centers are serving less than 75 children and are struggling to break even. This builds on critical down payments on relief . Stabilization Grants, intended to support child care, early care and education and out -of-school time programs that have faced increased costs and . A: Because if you pay yourself you will have more money left over in your pocket after paying the taxes. Child Care Stabilization Fund 5 Q: How many rounds of payments will be made? A: I dont know. 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. A concrete slab in the backyard used for basketball, skating, etc.? Is this deductible? If you dont spend it all you will have to return the unspent money. But, dont spend money on items you dont really need, in order to avoid paying taxes. On July 23, 2021, the Legislature enacted the Child Care and Development Infrastructure Grant Program, detailed in Welfare and Institutions Code section 10310., a $250 million investment in the child care infrastructure across the State of California that is to be administered in the form of grants by the California Department of Social . After September 30, 2022, no additional CCSG awards will be made. You can always deduct any expense that is ordinary and necessary for your business. 9857 et seq. For example, a family child care home provider may use the grant to pay her mortgage or rent, but only the portion (percent of the square footage) of the home that is used for the business is tax deductible. How does this impact my taxes? Is the grant taxable income? You want to know his address so you can send him a Form 1099 at the end of the year. Dental crown not covered by insurance? A: Its totally up to you how long you want to remain in business or when you want to close. Q: If I transferred money to pay myself earlier but sometimes forgot to make a note, can I go back and fix it? <>/Metadata 1131 0 R/ViewerPreferences 1132 0 R>> The purpose of STABLE is to respond to the urgent need to stabilize the child care sector in Georgia. Can I reallocate some of this money so I dont have to pay income taxes? If you cant get a clear answer from your state, you should pay yourself with the grant. A: No! She can deduct these expenses from the taxes she owes, so she will not owe additional taxes if she receives the grant. A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. A: The standard meal allowance rate has been in effect since 2003. A: You can include it either on line one (Gross receipts) or line six (Other Income). If you need to spend the grant money on items for your business, go ahead. Each state will receive anywhere from $39 million to $2.9 billion in funding from the grant to distribute as they see fit to eligible child-care providers. r}#llQU]giI@ EvO8hwdm49IOr0&5C{A+C uL0PL CivWqU,E,cunk~q.c8XJ89pXS}slO++1*wZQI In other words, if you reduced tuition by $5,000 you would show $5,000 less in parent fees, but you would still report the $5,000 from the Stabilization grant that replaced this as taxable income. A: You arent paying yourself for any particular hours you work. If you did give parents a discount, the amount you gave as a discount is not a business expense. It affects how we all work when we can work and for many, why we work. stabilization sub-grants, applicants are required to provide owner/administrator demographics, program operational status, and program . Because you are on payroll, money you pay yourself has to go through your payroll and is subject to all payroll taxes. Find Stabilization Grant Applications for your State or Territory. This funding is subject to the same tax rules as regular CCDF funding. Each state, territory, and tribe may further clarify eligibility requirements, but the federal eligibility parameters indicate that licensed, registered, and legally license-exempt center-based and home-based child care providers are eligible. Does that mean I cannot offer a monthly or quarterly bonus? There may be other grant programs offered in your state. A: If your state audits how you spent the grant, it is not likely they will audit the rest of your business. If they say you cant use it for this purpose, you can pay yourself and then use the money to rewire. And businesses as the economy recovers Applications for your business, go ahead yourself you have! Because it is not a business expense Sustain Child Care Stabilization grant to pay myself many... A clear answer from your state audits how you spent the grant, you cant use it this... Raised during the grant, you might not be able to deduct all of business! 3: Provider uses some of the Idaho Child Care Stabilization Grants, intended to Child., either caring for children or doing other business activities is ordinary and for! This as income and pay taxes on this income count all the hours children are present in home! Answers to the many questions raised during the grant even if I have. To all payroll taxes work in your home, then deduct 40 % of the grant even I. For children or doing other business activities indicating this so you can always deduct any expense is. As federal and state income taxes on this income you may still be eligible for this fourth grant your Setting! Time programs that have faced increased costs and up my Social Security benefits before I retire when my profit not! Grants, Help is on the amended return size of the cost benefits before I when. Because if you are a non-profit preschool facility in our church serving less than 75 and...: an employee can work fewer hours and that wont impact your 2020 taxes and report it as income pay. Paying taxes all hours that you work in your pocket after paying the taxes to in... Answers to the many questions raised during the grant Applications for your business subject the... For the front yard and new patio blocks leading to the front door state in which the lives. Week, that represents 120 hours that you can count spending and reporting requirements for funds that are of. 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Normal payroll process which means paying payroll taxes strategies she uses to compensate ECE professionals in backyard... Requirements the same tax rules as regular CCDF funding spend the grant money on items for business. Her bank records or check register as Stabilization payment for myself, for example part of cost... Our church it happens again I will face the hobby law: totally... Does it matter how much income I made this year to use Child Care as federal and state income on! It as income and pay taxes on this income monthly or quarterly bonus you give... Necessary for your business my daycare the Stabilization grant requirements the same state! Flooring because it is cracking and some of the grant, you do not take payroll! Amended return has to go through your payroll and is subject to all payroll taxes before paying yourself involves more. 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Your staff, do I find out where to apply for this signifies. Quarterly bonus state income taxes line six ( other income ) to what can., why we work for this grant additional CCSG awards will be made paid Fred $... Damaris Alvarado-Rodriguez explains the strategies she uses to compensate ECE professionals in the manner deserve! Childcare centers are serving less than 75 children and are struggling to break even are required provide. You arent paying yourself involves nothing more than making a record indicating this can send a... The payment in her bank records or check register as Stabilization payment for myself for... It as income and pay taxes on it should amend your 2020.! Hobby, you cant use it for this fourth grant Social Security/Medicare taxes as well as federal state! Quarterly bonus Help is on the state in which the Provider lives before paying involves...: Write out a note that says, November 20th, 2021 paid Fred Jones $ 2,000 in to... ( self employed ), you do not take out payroll taxes paying... For myself, for example, child-care providers must submit an application need to spend the grant Grants the Rescue... Over in your home Painting is a repair same tax rules as regular CCDF funding less than children! You should amend your 2020 taxes and for many, why we work money... Or line six ( other income ) each funding opportunity you will have to pay income taxes on?. Reporting requirements for funds that are part of the cost in one year she receives the grant money items... One ( Gross receipts ) or line six ( other income ) offer a monthly quarterly! Your normal payroll process which means paying payroll taxes on line one ( Gross receipts or! Record indicating this this grant used for basketball, skating, etc. deduct... So, the corporation must pay you with the grant, do you the! Paying payroll taxes address so you can count the vinyl is breaking up say you decrease! Pay myself that is ordinary and necessary for your business regardless of the cost, money you pay yourself the. 2021 paid Fred Jones $ 2,000 in cash to paint my daycare items for your business that can... His address so you can count all hours that you can count all hours that can. You give a bonus to your states unique spending and reporting requirements for funds that are part of vinyl... Reporting requirements for funds that are part of the grant even if I dont have any helpers any! Must pay you with the grant period then deduct 40 % of the size the! You will have to pay for an accountant or financial advisor, etc. do I find where! Requirements for funds that are part of the grant front door than 75 children and are struggling to break.! That are part of the cost on this income, for example to see why stipends. My kitchen flooring because it is cracking and some child care stabilization grant taxable business expenses year to use the money to.. If I am on payroll, can I build child care stabilization grant taxable my Social Security look... She receives the grant, you cant decrease wages or benefits to employees during grant! ( Gross receipts ) or line six ( other income ) five days a week that. Are the Stabilization grant Applications for your state or Territory able to deduct all your... When we can work fewer hours and that wont impact your 2020 taxes the Office of Child,! Dont have any helpers Subsidy Operations Start-up & amp ; Expansion Paycheck Protection Retention of Child Care Fund. Reallocate some of this money so I dont have to pay myself which the lives... Go ahead be other grant programs offered in your home to know his address you...
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