Attachment 2 - cctapguide1.pdf

U.S. Department of Housing & Urban Development

CHILD CARE TUITION

ASSISTANCE PROGRAM GUIDE

Child Care Tuition Assistance Program Guide

CHILD CARE TUITION ASSISTANCE

PROGRAM GUIDE

TABLE OF CONTENTS

Page Background Information 1

Definitions 1

Program Description 2

Roles & Responsibilities 2

Eligibility 3

Income Tax Considerations 3

Administration of the Program 4

Payment to Child Care Providers 4

Application Procedures 4

APPENDIX

Questions and Answers 6

Application Form 8 OPM Form 1644 12

Child Care Tuition Assistance Program Guide

Child Care Tuition Assistance Program Guide

Background Information

Public Law (PL) 106-58, Section 643 (113 Stat.477) of September 29, 1999, allowed Federal agencies the discretion to use appropriated funds, including revolving funds, that are otherwise available to the agency for salaries, to develop pilot programs designed to improve the affordability of child care costs for lower income Federal employees through Fiscal Year 2000. On March 14, 2000, the U. S. Office of Personnel Management (OPM) issued final regulations (5 CFR, Part 792) implementing PL 106-58. On November 12, 2001, President George W. Bush signed HR 2590 into Public Law 107-67. Section 630 of this law provides permanent legislation authorizing executive agencies to use appropriated funds for child care services for lower income employees.

Definitions

1) Child means one who is under age 13 and bears any of the following relationships to an employee, the employee’s spouse, or the employee’s domestic partner:

a) A biological child of the Federal (HUD) employee;

b) An adopted child;

c) A stepchild;

d) A foster child;

e) A child for whom a judicial determination of support has been obtained; or

f) A child to whose support the employee, the employee’s spouse, or the employee’s domestic partner makes regular and substantial contributions.

2) Disabled Child means a child who under the age of 18 and is unable to care for himself or herself because of a physical or mental condition as determined by a physician or licensed or certified psychologist.

3) Contractor applies to an organization or individual who provides administrative oversight of HUD’s child care program for which HUD families are eligible.

4) Child Care Provider means an individual or entity providing child care services for which Federal employees' families are eligible. The provider must be licensed or regulated, and the provider's services can be provided in a Federally-sponsored child care center, a non-Federal center, or a family child care home.

5) Domestic Partner means person in a domestic partnership with an employee of the same sex.

6) Domestic Partnership means a committed relationship between two adults of the same sex in which the partners:

a) Are each other's sole domestic partner and intend to remain so indefinitely;

b) Maintain a common residence, and intend to continue to do so (or would maintain a common residence but for an assignment abroad or other employment-related, financial, or similar obstacle);

Child Care Tuition Assistance Program Guide

c) Are at least 18 years of age and mentally competent to consent to a contract;

d) Share responsibility for a significant measure of each other's financial obligations;

e) Are not married or joined in a civil union to anyone else;

f) Are not the domestic partner of anyone else;

g) Are not related in a way that, if they were of opposite sex, would prohibit legal marriage in the U.S. jurisdiction in which the domestic partnership was formed;

h) Are willing to certify, if required by the agency, that they understand that willful falsification of any documentation required to establish that an individual is in a domestic partnership may lead to disciplinary action and the recovery of the cost of benefits received related to such falsification, as well as constitute a criminal violation under 18 U.S.C. 1001, and that the method for securing such certification, if required, will be determined by the agency; and

i) Are willing promptly to disclose, if required by the agency, any dissolution or material change in the status of the domestic partnership.

Program Description

The U. S. Department of Housing and Urban Development has allocated funds for a Department-wide Child Care Tuition Assistance Program which will provide financial subsidies to lower income HUD employees to assist in their efforts to obtain quality, licensed day care and before and after school care for dependent children under the age of 13, and disabled children under the age of 18. The purpose of this program is to improve the affordability of child care for lower income HUD employees. Child Care Tuition Assistance is available to HUD employees in all offices, who are full-time or part-time, and whose adjusted gross income does not exceed $69,999. Qualified participants must use licensed child care providers, meet income requirements, and maintain full-time or part-time position status with HUD.

Roles & Responsibilities

Department of Housing & Urban Development

HUD is responsible for establishing a child care subsidy program in which the agency uses appropriated funds, in accordance with 5 CFR Subpart B, to assist lower-income employee of the agency with their child care cost.

FEEA Childcare Services, Inc

The contractor is responsible for handling the administrative functions of the program;

this includes but is not limited to, processing all applications and disbursing subsidy payments.

Employee applications will be accepted and denied solely based on program eligibility requirements. The contractor is required to notify the employee regarding the decision of their application no later than 10 business days of receipt of the application. The contractor will pay the child care provider directly, within 10 days of receipt of the invoice.

HUD Employee (Subsidy recipient)

Child Care Tuition Assistance Program Guide

The HUD employee is responsible for submitting monthly invoices for each month to FEEA Childcare Services, Inc no later than the 10th of the following month. Late invoice submissions will not be approved, and the employee may responsible for the entire invoice amount for that period. Employees are also responsible for re-certifying their eligibility no later than May 1st of each year.

Eligibility

The amount of tuition assistance an employee can receive depends on the total adjusted gross family income and the amount an employee pays for child care.

Line 4 if you filed a Form 1040EZ

Line 21 if you filed a Form 1040A

Line 37 if you filed a Form 1040

As shown below, an income threshold amount of $69,999 has been set which establishes the highest amount of total family income that can be earned in a given year in order to be eligible for the program.

The amount of tuition assistance is based on a percentage of child care costs in relation to total family income. A cap is placed on the monthly amount that can be awarded for one (1) child, with a slightly higher cap for two (2) or more children regardless of the number of weeks in a given month. These amounts apply to the total cost of child care, and not cost per child.

Total Family Income

Percentage of Actual Child Care

Costs paid by HUD

Monthly Subsidy, Not to Exceed*

(For 1 Child)

Monthly Subsidy, Not to Exceed* (For 2 or More

Children)

$0-$25,000 90% $525 $630

$25,001-$29,999 70% $395 $500

$30,000-$39,999 60% $370 $475

$40,000-$49,999 50% $335 $440

$50,001-$59,999 40% $230 $335

$50,001-$69,999 30% $130 $235

*Subsidy amounts apply to total cost of child care, not cost per child.

Income Tax Considerations

Any annual subsidy received in excess of $5,000 ($2,500 in the case of a separate return filed by a married individual) is reportable to the Internal Revenue Service as a fringe benefit, and must be included as part of gross income for tax purposes. HUD will report the annual subsidy in excess of $5,000 on a participating employee’s W-2 statement as required by 26 U.S.C.§ 129 (d) 7.

Child Care Tuition Assistance Program Guide

Administration of the Program

The Department has chosen FEEA Childcare Services, Inc to administer the Child Care Tuition Assistance Program. The HUD Employee Assistance Program (EAP), with support from the contractor, will administer the Child Care Tuition Assistance Program. The contractor will receive applications, make subsidy decisions, and notify applicants and the child provider of the decision.

Payments to Child Care Providers

Subsidy payments will be paid directly to the child care provider after notification of approval. No payments will be made to employees. The contractor will pay the subsidy to the child care provider.

Application Procedures

Applicants will complete a child care tuition assistance application (attached) with required supporting documentation. Applications will be processed in the order of receipt and awards are based on HUD’s funding availability. Notification letters regarding the decision on each application will be sent to applicants within 10 business days of receipt of the application.

Applications that are not fully completed or do not contain the information required, will not be processed and will be returned to the applicant. When more than one parent works for the Federal Government, tuition assistance cannot be awarded for the child/children by more than one Federal agency. If both parents work for HUD, only one may apply for the tuition assistance.

All information is kept strictly confidential. Only the EAP staff and the contractor administering the program know the identity of the applicant. Once the award is made, only the amount of the award and name of the applicant are provided to the child care provider.

Questions about the program should be directed to EAPWorklife@hud.gov. Any questions about the application may be directed to FEEA Childcare Services, Inc.

mailto:EAPWorklife@hud.gov

Child Care Tuition Assistance Program Guide

APPENDIX

Questions and Answers

Child Care Tuition Assistance Program Guide

HUD Child Care Tuition Assistance Program

Q. What children are eligible for the subsidy?

A. HUD’s program covers the children of employees located in all offices, excluding contract employees, who are under the age of 13, and disabled children under the age of 18.

Q. What is a disabled child?

A. For the purposes of this program, disabled child means a child who under the age of 18 and is unable to care for himself or herself because of a physical or mental condition as determined by a physician or licensed or certified psychologist

Q. Are children enrolled in summer programs and part-time programs eligible?

A. Yes, eligible HUD employees with children (under the age of 13 and disabled children under the age of 18) who are enrolled in summer care programs and part-time programs are eligible.

Q. Are part-time Federal (HUD) employees eligible?

A. Yes, eligible HUD employees who work part-time are eligible to participate in the program.

Q. Does the program apply only to on-site Federal child care centers that are utilized by Federal families?

A. No, the program is broad in scope and includes non-Federal center-based child care, as well as care in family child care homes, as long as they are licensed and/or regulated by the State and/or local regulating authorities.

Q. Are child care subsidies paid to the HUD employee using the child care?

A. No, the child care subsidy is paid directly to the child care provider for the child that is approved for the program.

Q. Are there any conditions which the child care provider must meet in order to participate in the program?

A. Yes, the provider, whether center-based or family child care, must be licensed and/or regulated by the State and/or local authorities where the child care service is delivered.

Q. Are subsidies eligible for any type of tax exemption?

Child Care Tuition Assistance Program Guide

A. Yes, under certain conditions. The IRS has advised that if the child care subsidy program is implemented as a dependent care assistance program, described in Section 129 of the Internal Revenue Code, amounts of up to either $2,500 for an individual filing married but separate or $5,000 for either a joint filer or single parent may be excluded from gross income. The amount of subsidy received exceeding the applicable tax-free amounts stated above will be recorded on the employee’s W-2 form. To qualify for the exemption, an employee must claim the child as a dependent on his/her Federal income tax return.

Q. What are the tax implications of child care subsidies under this program?

A. The child care subsidies are generally taxable as income to the employee who benefits from them (26 U.S.C.§61, and 26 C.F.R.§1.61-1).

Q. How can employees ensure that they are calculating their exemptions correctly?

A. Employees can refer to IRS Publication 503, “Child and Dependent Care Expenses.” This publication may be found at the IRS web site, www.irs.gov/pub/irs-pdf/p503.pdf, or consult your tax advisor to be sure that you calculate the child care credits and exemptions correctly.

Child Care Tuition Assistance Program Guide

Child Care Tuition Assistance Application Form

U.S. DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT (HUD)

Tuition assistance is available to all full time or part-time HUD employees whose total family income is $69,999 or less and who have dependent children under the age of 13, and disabled children under the age of 18 in licensed child care.

Awards are made on a first-come, first-serve basis during the enrollment period. A letter will communicate the award amount and effective date. The contractor may contact the applicant to request clarification on the tuition assistance application. The following information must be attached to the application:

1. Pay statements for the two (2) most recent pay periods for each parent or guardian;

2. A copy of the most recent Federal and State income tax returns.

3. A completed OPM Form 1644, Child Care Provider Information Form, signed by the child care provider with a copy of their most recent license, proof of license, or statement of compliance with State and/or local child care regulations; and

4. A copy of the most recent SF-50, Notification of Personnel Action, to verify employment status.

Applications that are incomplete or do not contain the information listed below will not be processed and will be returned to the applicant. If the requested information is not provided, a tuition assistance award will not be received. When more than one parent works for the Federal Government, tuition assistance cannot be awarded for the child/children by more than one Federal agency.

Child Care Tuition Assistance Program Guide

Mother/guardian: Home Phone: ( )

Home Address:

Employer’s Name and Address:

Work Phone: ( ) Grade:

Father/guardian: Home Phone: ( )

Home Address:

Employer’s Name and Address:

Work Phone: ( ) Grade:

Application is being made for tuition assistance for:

(If more than two children, please photocopy this page to add additional names)

Child: Date of birth:

SSN: Weekly tuition cost:

Enrolled now? Will be enrolled (Date of enrollment):

Child care provider:

Address:

Phone: ( ) Center-based care Family child care home

Child: Date of birth:

SSN: Weekly tuition cost:

Enrolled now? Will be enrolled: Date of enrollment

Child care provider:

Address:

Phone: ( ) Center-based care Family child care home

Child Care Tuition Assistance Program Guide

Family Income:

Total Adjusted Gross Family Income: $ (As reported on most recent IRS tax return; Line 33 of Form 1040 or Line 19 of 1040A)

State/County/Local Subsidies:

Do you currently receive any tuition assistance from State/County/local child care subsidy funds? Yes ___ No___ If so, from what source?

Address:

Contact person:

What is the weekly amount? $

List the amount and name child for whom you receive the State/County/local subsidy:

Name of child: Weekly subsidy amount: $

Name of child: Weekly subsidy amount: $

Name of child: Weekly subsidy amount: $

Name of child: Weekly subsidy amount: $

I/We state that everything we have stated in this application is true and correct to the best of our knowledge. I/We are willing to certify, if required by HUD, that we understand that willful falsification of any required documentation may lead to disciplinary action and the recovery of the cost of benefits received related to such falsification, as well as constitute a criminal violation under 18 U.S.S 1002, and that the method of securing such certification, if required will be determined by the agency. I/We further agree to inform the contractor within 10 days if any of the above information changes. I/We understand that failure to inform the contractor of any changes in status may jeopardize our chances of receiving tuition assistance through HUD’s tuition assistance program.

Signature of Applicant Date

If both parents work for the Federal Government, the HUD employee must certify that his/her spouse has not applied for child care subsidy from his/her Federal agency by completing the following:

I, ___________________, certify that my spouse has not applied for a child care subsidy from his/her Federal agency.

Signature of Applicant Date

Child Care Tuition Assistance Program Guide

Attached:

1. Pay statements for the two (2) most recent pay periods for each parent or guardian;

2. Most recent Federal and State income tax forms. For example, if you submit a 2006 tax return, you will be required to submit your 2007 return by April 15, 2008. Otherwise, you may submit your 2006 return with this application;

3. A completed OPM Form 1644, Child Care Provider Information Form, signed by your child care provider with a copy of their most recent license or statement of compliance with State and/or local child care regulations; and

4. A copy of your most recent SF-50, Notification of Personnel Action, to verify your employment status.

Complete applications and attachments must be mailed to the contractor:

FEEA Childcare Services, Inc

Privacy Act Statement

Public Law 106-554, Section 633 (December 21, 2000) confers regulatory authority on OPM for agency use of appropriated funds for child care costs for lower income Federal employees.

Public Law 104-134 (April 26, 1996) requires that any person doing business with the Federal Government furnish a Social Security Number or tax identification number. This is an amendment to title 31, Section 7701. The primary use of these Social Security Numbers will be for identification purposes in determining eligibility for child care tuition assistance. The primary use of information regarding family income (copies of pay slips and tax returns), name of current child care provider, copies of the provider’s license, statement of compliance, and information about other child care subsidies is also used to determine eligibility for child care tuition assistance. Disclosure of the above information is voluntary, but failure to provide all of the requested information may result in denial of your application.

Child Care Tuition Assistance Program Guide

OPM Form 1644- Child Care Provider Information Form

Child Care Tuition Assistance Program for Federal Employees Department of Housing & Urban Development

This information is requested by the Department of Housing & Urban Development for the administrator of the Child Care Tuition Assistance Program to verify licensure and/or regulation status. This form is to be completed by the Child Care Provider, and submitted with the application.

1. Child Care Provider:

a. Name:__________________________________________________________

b. Address:________________________________________________________

c. Family Child Care: Yes No Center-Based Child Care: Yes No

2. Organization(s) that licenses or regulates your child care program and the most recent date of your license or regulatory approval:

a. Name:___________________________________ Date:___________________

b. Name:___________________________________ Date:___________________

* Attach your most recent license or other notification of approval to operate.

3. Children of Federal employees who have applied for tuition assistance:

a. Child’s Name:__________________________________________________________

Parent’s Name:___________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: ________________________

b. Child’s Name:_________________________________________________________

Parent’s Name:___________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: ________________________

c. Child’s Name:_________________________________________________________

Child Care Tuition Assistance Program Guide

Parent’s Name:___________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: ________________________

d. Child’s Name:_________________________________________________________

Parent’s Name:___________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: ________________________

Certification Statement

I certify that the information provided in this statement is correct, as I know it. I understand it is a Federal crime under USC, Title 18, Section 1001, to make false statements on this form. If I make a false statement, I may be subject to criminal prosecution and punishment including a fine, imprisonment, or both.

Signature of individual completing this form:

Name of individual completing this form:

Title:___________________________________________________________________

Telephone:_______________________________________________________________

Federal ID or SSN#:_______________________________________________________

Fax Number:_____________________________________________________________

Privacy Act Statement:

Child Care Tuition Assistance Program Guide

Public Law 106-58, Section 643 (September 29, 1999) and Public Law 107-67 (November 12, 2001) confers regulatory authority on OPM for agency use of appropriated funds for child care costs for lower income Federal employees. Public Law 104-134 (April 26, 1999) requires that any person doing business with the Federal Government furnishes a Social Security Number or tax identification number. This is an amendment to Title 31, Section 7701. The primary use of the Social Security Number and tax identification numbers will be for identification purposes in assuring licensure and/or regulation compliance. This compliance is necessary for determining Federal employee eligibility for child care tuition assistance. Disclosure of the above information is voluntary, but failure to provide all of the requested information may result in denial of your application.

Public Burden Statement:

We think this form takes an average of 10 minutes to complete including the time for getting the needed data and reviewing both the instructions and completed form. Send comments regarding our estimate or any other aspect of this form, including suggestions for reducing completion time, to the Office of Personnel Management (OPM), Reports and Forms Manager, Paperwork Reduction (32206-0240), Washington, DC 20515-7900. The OMD Number, 3206- 0240, is currently valid. OPM may not collect this information, and you are not required to respond, unless this number is displayed.

Continuation Page - OPM Form 1644:

e. Child’s Name:_________________________________________________________

Child Care Tuition Assistance Program Guide

Parent’s Name:___________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: ________________________

f. Child’s Name:________________________________________________________

Parent’s Name:__________________________________________________________

Weekly Tuition Amount:___________________________________________________

Weekly subsidy amount from State or Local governments: _______________________