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Payments to a child care provider

Determine when an outside third party is paying for child care for a child in the household. There are situations where you must consider these payments as income or record these payments as a second copayment.

Does a court order require the payment?

Third party payments to a child care facility usually do not count toward the household's eligibility. The exception to this rule is when a court order directs a noncustodial parent to make child support payments to the household and he or she instead pays for the household expenses. This payment counts as unearned income unless the payment is for medical support. Exclude medical support payments when counting court-ordered payments.

Does anyone make payments to the child care provider in addition to the copayment?

You may record third party payments to a child care facility through FACS coding and case notes. Determine whether the third party is paying a portion of the client's copayment or is making a payment in addition to the copayment.

  • When a third party is paying a portion of the client's copayment to the child care, case note who is paying toward the client's copayment and whether is countable or not.
  • When the payment is in addition to the client's copayment, record the gross monthly pay amount in the Court Ordered Child Care field (E55) and send a Client Notice of Action Taken Form (08MP038E) to both the client and child care provider. The notice explains a third party is paying an additional copayment and DHS will not pay the child care provider until both the client's copayment and the additional copayment are paid.

If you receive verification that the third party is no longer paying the copayment, remove the amount coded in FACS E55 and complete the Report of Electronic Benefits Transfer Child Care Payment Adjustments (Form 10EB004E or EBT-4).

Countable Amount

Use the gross monthly amount required by a court order but that is instead paid to the child care provider. Unless using the best available verification, use an average of the most recent 60 days of payments.

Verification

You must verify any payments made to the child care provider in the last 60 days. Speak to the person making the payment or get a written statement detailing the pay dates and gross pay amounts. You must also obtain a copy of any relevant court orders.

FACS Coding

Select "Contribution from person not included in this household" in the F99 dropdown box, and enter the gross monthly pay amount in F98 field.

A FACS screenshot highlighting the F98 and F99 blocks.

Example 1:

Sullivan is using Child Care for his three-year-old son Leonardo to attend child care. Carlie, Leo's mother, lives separately and is paying $45 toward Sullivan's copayment. She pays this amount directly to the child care provider. Sullivan is cooperating with Child Support Services to obtain child support from Carlie, but no court order currently compels her payment. How do you document Carlie's payment? Is this countable income?

Carlie's payment is not countable income. There is not court order requiring her actions, and Sullivan never receives the income. She is making a voluntary vendor payment to Sullivan's child care provider. Document the payment in case notes, but do not consider it countable income at this time.

Example 2:

Shannon, aged 30, applies for Child Care for her six-year-old twins Aaron and Coby. A court order directs Bennett, the children's father, to pay $200 per month to the child care provider toward their child care expenses. Shannon, however, reports Bennett has not made the payments. You confirm with the child care provider that Shannon is the only person making payments for the twin's care. How do you document this situation?

Document the court order in verification and case notes, but do not include any income on the Child Care benefit. There must be verification of the court order and ongoing payment before adding a second copayment to the case.

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