Q1. What is the VA Child Care Subsidy Program?
A1. This program is implemented under the authority of Public Law 107-67, Section 630, and Title 5, Part 792 of the Code of Federal Regulations, for which Federal agencies may use appropriated funds to assist lower income employees with the cost of child care.

Q2. What children are eligible for the program?

A2. Children from birth through the age of 13 and children through the age of 18, if disabled, are eligible. For this program, a child is defined as:

• A biological, adopted, step, or foster child who lives with the Federal employee;
• A child for whom a judicial determination of support has been obtained;
• A child to whom the Federal employee is a parent or legal guardian and makes regular and substantial contributions to the child’s care.

Q3. What is the definition of a child with disabilities?

A3. A child with disabilities is a child who is unable to care for himself or herself based on a physical or mental incapacity as determined by a physician or licensed or certified psychologist.

Q4. What type of child care providers can an employee use to be eligible to receive the subsidy?

A4. Employees may use any provider that is licensed and/or regulated by the state and/or local regulating authorities. Licensed providers can be found at the following website: http://www.findcarenow.com/

Q5. How is this program affected by other child care subsidies?

A5. Child care subsidy amounts paid by VA will be reduced by the amount of other state or local subsidies received. Employees are responsible for determining whether acceptance of the VA child care subsidy affects their eligibility for child care subsidies from any other sources.

Q6. Are child care subsidy payments taxed?

A6. Yes, in some circumstances. There are tax implications when receiving child care subsidy (plus dependent care flexible spending account (DCFSA) deductions, if applicable) greater than $2,500 per year if married and filing separately, or $5,000 per year if married filing jointly, single, or head of household. VA Child Care Subsidy Program payments may be excluded from an employee’s gross income if the employee’s child(ren) meets the Internal Revenue Service’s definition of a dependent. If the child(ren) does not meet this definition, the employee may still receive the subsidy, but it will be treated as taxable income. Employees should consult their tax advisor for a detailed explanation of how this subsidy affects their particular situation.

Q7. Please provide an example showing when child care subsidy payments will be taxed?

A7. An employee (married filing jointly) receives $400 per month for child care subsidy. The employee also participates in the DCFSA program, with $125 withheld each pay period. The employee’s combined total of child care subsidy plus DCFSA is $4,775 through pay period 08-16. In pay period 08-17 the employee receives $400 for child care subsidy and has $125 withheld for DCFSA. Therefore, the employee’s child care subsidy plus DCFSA through pay period 08-17 is $5,225. Because only $5,000 can be excluded from taxes, taxes will be withheld on $225 from the employee’s pay in pay period 08-17 and for all child care subsidy payments and DCFSA withholdings for the remainder of the year.

Q8. What VA office is responsible for the program?

A8. The Office of Human Resources Management (OHRM), Worklife and Benefits Service, is responsible for the administration of the program. First Financial Associates (FFA) has been contracted to perform the day-to-day operational requirements.

Q9. What is the role of Human Resources (HR) office at each facility?

A9. HR offices are responsible for providing employees with necessary application forms; completing VA Form 0730d, Child Care Subsidy Documentation Checklist, for initial application packages; forwarding completed initial application packages to FFA, and responding to basic questions from employees about the program.

Q10. Which VA employees are eligible to participate in the program?

A10. All full-time and part-time VA employees who meet the salary criteria are eligible to participate. Temporary employees are eligible as long as they are employed on a full-time or part-time basis, regardless of whether the position is being filled temporarily or intermittently.

Q11. Are contract employees eligible to participate in this program?

A11. No.

Q12. What are the requirements to participate in the program?

A12. To be eligible to participate, employees must:

• Be a full-time or part-time VA employee;
• Have a total family income below $60,000; and
• Place their child(ren) in a licensed day care, home care or before/after school program.

Q13. Is there a maximum subsidy amount?

A13. Yes. Beginning March 1, 2008, the maximum subsidy for most employees is $600 per month. Full-time employees whose total family income is $34,999 or less and who are receiving child care subsidy for three or more children may receive up to a maximum of $800 per month. Prior to March 2008 there was no maximum monthly subsidy amount.

Q14. Please provide an example where an employee could receive more than $600 per month.

A14. An employee is approved for a 40% subsidy based on a total family income of $34,000. The employee is receiving child care subsidy for three children with a monthly cost of $1650. Because the employee’s total family income is less than $34,999 and he/she is receiving child care subsidy for 3 children, the employee is entitled to the full 40% of their child care costs. Since $1650 X 40% = $660, the employee’s monthly subsidy is $660.

Q15. How does the contractor determine the percentage of the employee’s child care costs?

A15. The percentage is based on the employee’s total family income. The chart below shows the percentage of total child care costs that VA will pay based on an employee’s total family income:

Example: An employee’s total family income is $39,000 and the employee’s total child care cost each month is $800. VA will pay 30% of the $800 cost, or $240 each month. Therefore, VA will pay $2,880 ($240 X 12 months) of the employee’s child care costs for the year.

Q16. Does approval to participate in the VA Child Care Subsidy Program constitute a financial arrangement with the employee or the employee’s child care provider(s)?

A16. No. Although VA pays a percentage of an employee’s child care costs, the employee is responsible for their total child care costs and must pay the full amount of all bills issued by their child care provider. Employees cannot refuse to pay their full child care bill simply because the employee has been approved for a subsidy that can be applied toward their child care costs.

Q17. What sources of income are considered when determining “total family income?”

A17. Total family income is defined as the combined income of the child’s parents/guardians listed on their Internal Revenue Service (IRS) tax forms as their adjusted gross income. Employees must be willing to submit copies of their last 2 Earnings and Leave Statements and signed and dated copies of their latest IRS 1040 Form or other relevant IRS tax forms to the administrators of the program for the purpose of verifying total family income in order to participate in the program.

Q18. If a facility is closed due to an emergency situation such as a hurricane, flood or pandemic, are employees at the facility still eligible for child care subsidy during the period of the closure?

A18. Yes. Closure of a facility due to an emergency does not affect employees’ entitlement to child care subsidy.

Q19. Are child care subsidy payments affected by leave without pay (LWOP)?

A19. No. Employees may still receive the subsidy while on LWOP, including extended LWOP for military purposes and under the Family Medical Leave Act.

Q20. Will the child care subsidy be provided to VA employees automatically?

A20. No. To receive these benefits, employees must submit an initial application package and all supporting documentation to their local HR office.

Q21. How do VA employees apply for the program?

A21. Employees may obtain application forms and general information from their local HR office or they may access the OHRM Web site at: http://vaww.va.gov/vachildcare/index.htm to obtain the application forms and other child care subsidy program materials. Applications must be completed and returned to the employee’s local HR office for submission to FFA.

Q22. What forms and documentation are required in initial application packages?

A22. The following forms and documentation are required:

• VA Form 0730a, VA Child Care Subsidy Employee Application Form;
• VA Form 0730b, Child Care Provider Information (completed by the child care provider);
• Copy of provider’s state child care license;
• Schedule of fees from the child care provider for each child;
• Copy of most recent SF-50, Notice of Personnel Action;
• Copy of last two (2) Earnings and Leave (E&L) Statements;
• Signed and dated copies of most recent Federal tax return; (IRS Form 1040). If married filing separately include signed and dated copy of spouse’s Federal income tax return (IRS Form 1040)
• Copy of most recent W-2 Form(s); and
• Copy of birth certificate with a raised seal or a certified copy for each child.*

* HR offices will validate that birth certificate(s) contain raised seal or are certified and will photocopy for inclusion in initial application packages.

Q23. What should I do if it is illegal under state law to photocopy birth certificates from that state?

A23. HR offices will prepare a document with the following statement in lieu of the requirement to submit a copy of the birth certificate. The HR Specialist will date and sign the statement and clearly print his or her name directly underneath their signature.

I certify that I have seen the birth certificate for ___(child’s name)___ , the child of ___(employee’s name)___. The child's date of birth as indicated on the birth certificate is _______________ and the child's gender is ____________. I attest that the birth certificate has a raised seal. It is illegal to photocopy birth certificates from the state of __(state)___.

Q24. Do new employees have to wait until they receive 2 Earnings and Leave Statements (E&Ls) to apply for the program?

A24. No. New employees may submit a copy of their appointment letter in lieu of this requirement. HR offices will annotate in the Comments area on VA Form 0730d that a copy of the employee’s appointment letter is provided in lieu of copies of E&Ls. Employees must mail copies of these E&L statements to FFA as soon as both E&L statements are available.

Q25. What forms and documentation are required when changing child care providers?

A25. The following forms and documentation are required:

• VA Form 0730b, Child Care Provider Information (completed by the child care provider);
• Copy of provider’s state child care license; and
• Schedule of fees from the child care provider for each child;

Q26. What forms and documentation are required in annual recertification packages?

A26. The following forms and documentation are required:

• VA Form 0730a, VA Child Care Subsidy Employee Application Form;
• Copy of most recent SF-50, Notice of Personnel Action;
• Copy of last two (2) Earnings and Leave (E&L) Statements;
• Copy (signed and dated) of most recent Federal tax return (IRS Form 1040). If married filing separately include signed and dated copy of spouse’s Federal income tax return (IRS Form 1040); and
• Copy of most recent W-2 Form(s).

Q27. Do employees have to include a signed and dated copy of IRS Form 1040 in initial application and recertification packages if the employee files their taxes electronically?

A27. Yes. A signed and dated copy of IRS Form 1040 is required in all initial application and recertification packages. Other forms used when filing electronically, such as IRS Forms 8453 and 8879, will not be accepted. Since the IRS Form 1040 does not contain a signature when filing electronically, employees (and spouses, if applicable) must sign and date (use the date the taxes were filed electronically) the IRS Form 1040.

Q28. Do employees (and spouses, if applicable) have to include copies of state tax returns in their application packages?

A28. No.

Q29. If an employee did not file taxes during the most recent tax year, what do they submit in lieu of the signed and dated copy of their Federal tax return in new application and recertification packages?

A29. Employees who did not file Federal taxes during the most recent tax year should contact FFA at 1-800-453-8151 to obtain an affidavit that no Federal taxes were filed.

Q30. Can employees submit their initial application package directly to FFA?

A30. No. Initial application packages must be submitted to the employee’s local Human Resources (HR) office. The HR office will submit the package to FFA. Packages sent directly to FFA by employees will be returned to employees.

Q31. When should HR offices submit initial application packages to FFA?

A31. HR offices should immediately submit properly completed initial application packages to the contractor for eligibility determination. Properly completed packages should not be held in HR offices for submission at a later date for any reason.

Q32. How do employees check the status of their application package?

A32. Employees may call FFA at 1-800-453-8151 to find out the status of their application package.

Q33. Are HR offices required to retain copies of initial application packages and all related forms and documentation?

A33. No. Only initial application packages have to be submitted to HR offices. Employees will submit other packages, such as annual recertification and notification of change in provider, directly to FFA.

Q34. What is the purpose of VA Form 0730d, Child Care Subsidy Application Checklist?

A34. HR offices use VA Form 0730d to record receipt of all required documentation for initial application packages. This form ensures all required items are included in initial application packages. The date each item is received is annotated on VA Form 0730d by HR offices. VA Form 0730d is placed on top to serve as a cover sheet for all initial application packages submitted to FFA.

Q35. Are HR offices required to retain copies of initial application packages and all related forms and documentation?

A35. Yes. Copies will be made of all packages, including forms and documentation, in initial application packages and retained in a secure environment.

Q36. Are HR offices required to provide employees with copies of initial application packages, forms and documentation?

A36. Yes. Employees will be provided copies of all documents sent to FFA in initial application packages.

Q37. Can applications, forms and supporting documentation be faxed or e-mailed to FFA?

A37. No. Applications, forms and documentation contain personally identifiable information that cannot be protected when faxed or e-mailed. For security purposes applications, forms and supporting documentation cannot be faxed or e-mailed to FFA.

Q38. Who makes the determination to approve or disapprove applications?

A38. FFA makes the determination.

Q39. When are employees notified whether they are approved to participate in the program?

A39. FFA will issue a letter to employees within 10 business days of receipt of the application package if their application has been approved, disapproved or additional information is needed.

Q40. How is the start date for receiving subsidy awards determined?

A40. FFA will certify properly completed packages for payment on the date that all required forms and documentation are reviewed. The effective date will be the first day of the month that the application is approved. For example, if an employee’s application is approved on June 16 th, the effective date for the subsidy award will be June 1 st. Subsidies will not be awarded for any month prior to FFA’s approval.

Q41. If an employee’s application is approved, will the employee be guaranteed to receive the subsidy for the duration of the program?

A41. Yes, as long as the employee meets the eligibility requirements and funds are available.

Q42. Can employees request reconsideration of applications that are denied by FFA?

A42. Yes. If an application is denied by FFA, the employee may submit a written request for reconsideration to the Associate Deputy Assistant Secretary (ADAS) for the Office of Human Resources management (OHRM). The decision of the ADAS for OHRM will be final.

Q43. Who is responsible for ensuring that employees submit accurate information on applications and supporting documentation? Is the information subject to review?

A43. Employees are responsible for the accuracy of information submitted in VA Child Care Subsidy Program applications and supporting documentation. The program is subject to periodic review and audit by OHRM, FFA, and the Office of Inspector General.

Q44. Is the child care subsidy paid to the employee?

A44. No. The subsidy will be paid directly to the child care provider on behalf of the employee.

Q45. Can invoices be submitted and subsidies paid prior to approval of an employee’s application package? Who submits invoices to FFA for payment? Is there a deadline for submission of invoices? Can employees check the status of their invoice?

A45. Employees should not submit invoices to FFA for payment prior to approval of their application package. Subsidies will not be paid for child care services rendered for any month prior to the month of approval by FFA.

Employees will submit invoices for payment to FFA and are responsible for ensuring invoices are submitted timely. Invoices should not be mailed to FFA until child care services for the month have been rendered. A separate invoice will be submitted each month using the standardized VA CCSP monthly invoice provided by FFA. Invoices must be mailed (faxes will not be accepted) and received at FFA not later than the last day of the month following the month for which payment is requested. For example, if payment is requested for June 2008, the invoice must be received by FFA not later than July 31, 2008. Invoices that are not received by this deadline will not be paid, nor will retroactive payments be made, by FFA.

Employees may call FFA at 1-800-453-8151 to find out the status of their invoice.

Q46. Do employees have to submit invoices every month in order to remain an active participant in the program?

A46. Yes. If employees do not submit invoices to FFA for 2 consecutive months they will be notified by FFA that they have been removed from the program. If they wish to participate in the program again they must submit an initial application package through their local HR office.

Q47. Is there a deadline for initial applications?

A47. No. There is no cut-off date for new applications. Employees may apply for the program at any time. Applications are processed on a first-come, first-served basis.

Q48. Will employees be notified if the program is to be discontinued?

A48. Yes. If there are any program changes employees will be notified accordingly.

Q49. How can VA employees obtain more information about the program?

A49. HR personnel at each facility will answer questions or employees may call FFA toll-free 1-800-453-8151. Employees can also obtain information on the VA Child Care Subsidy web site at http://vaww.va.gov/vachildcare.

Q50. Should employees who are separated from their spouse include their spouse’s income in the amount reported as total family income on VA Forms 0730a and 0730f?

A50. Yes. Employees who are separated, including legal separations, from their spouse must include their spouse’s income as total family income.

Q51. Should divorced employees include their ex-spouse’s income in the amount reported as total family income on VA Forms 0730a and 0730f?

A51. No. An ex-spouse’s income is not included in employee’s total family income and will not be considered in determining an employee’s eligibility for the subsidy.

Q52. Can employees apply for the subsidy for tuition costs associated with private schools for children with special needs?

A52. No. Tuition for private primary or secondary schools, including those with a focus on special needs, is not eligible under the VA Child Care Subsidy Program. The intent of the program is to assist employees with the cost of child care centers, home care, day care, and before/after school care programs.

Q53. Do employees qualify for the subsidy if the employee or his/her spouse is a licensed child care provider and they provide in-home care for their child(ren)?

A53. No. Parents who provide child care service for their own child(ren) as defined under the definition of child are not considered to be qualified providers under the VA Child Care Subsidy Program.