DEPARTMENT OF ADMINISTRATIVE & FINANCIAL SERVICES
Bureau of Employee Relations
Telephone (207) 287-4447
FAX (207) 287-4452 TTY (207) 287-4537
No.: OSER-38 Addendum #15
Date: February 13, 2001
Subject: Child Care Reimbursement Payments
To: All Holders of Employee Relations Manuals
From: Kenneth A. Walo, Director, Bureau of Employee Relations
Let this serve as a reminder that we are approaching the application period for child care reimbursement. There is no change to the application or payment procedure or to the Child Care Reimbursement form. Please direct any questions to Bonnie Stratton of my staff at 287-4447.
This Addendum applies to the 1999-2001 MSEA, MSTA and AFSCME contracts. This also applies to eligible confidential, project and acting capacity employees.
The relevant contract language is summarized below:
Employees employed full-time during the entire previous calendar year
who are otherwise eligible and who have an adjusted gross family income
of less than $26,000 for the previous calendar year shall be eligible
for reimbursement not to exceed $1000.
Employees employed full-time during the entire previous calendar year who are otherwise eligible and who have an adjusted gross family income of more than $26,000 but less than $31,000 shall be eligible for reimbursement not to exceed $700.
Employees employed full-time during the entire previous calendar year who are otherwise eligible and who have an adjusted gross family income of more than $31,000 but less than $36,000 shall be eligible for reimbursement not to exceed $500.
Prorated benefits are available for full-time employees who worked less than 12 months but more than six months during the previous calendar year, and for part-time and seasonal employees.
Payment shall be made within thirty (30) days of receipt of the completed application.
Note that this is a reimbursement program; under no circumstances is an employee to receive more than he/she spent on employment-related child care.
1. To be eligible, employees must be employed as of March 1 of the year in which reimbursement is to be paid.
2. The eligible employee must complete Section B of the Application Form and attach a copy of their 2000 Form 1040/1040A/1040EZ. If the employee is married but filing separate returns (and is not filing as Head of Household), then the Form 1040/1040A/1040EZ of the employee and the spouse must be attached.
3. A copy of the 2000 receipt for employment-related childcare expenses must also be attached. The copy of the receipt for employment-related child care expenses must contain the following:
a. period of time care was provided during the calendar year;
b. the amount paid; and
c. the name, address, phone number, social security number or state vendor identification number, and signature of the child care provider.
Child care reimbursement can be provided only if a receipt containing the required information is submitted.
4. The Application Form and attachments must be submitted to the Department/Agency Personnel Office.
PROCESSING FOR PAYMENT
Departmental Personnel Officer's Responsibility
The Departmental Personnel Officer is responsible for completing Section A and for verifying that the information provided in Section B is accurate. The DPO is also responsible for keeping a copy of the completed Application Form and the attachments on file and available. Two copies of the Application Form are to be submitted to Accounts and Control.
Accounts and Control's Responsibility
Accounts and Control is responsible for processing the childcare reimbursement payments. Applications will be processed for payment by Accounts and Control from March 1 through April 15 of each year. Applications received prior to March 1 will not be processed until March 1 or thereafter. Applications will not be processed after April 15 and all payments will be made by April 30.
All processing should be completed prior to April 15 of any year. None will be processed after that date without justification approved by Employee Relations.
SOME TYPICALLY ASKED QUESTIONS
1. Question: does the cost of summer day camp count as an employment-related child care expense?
Answer: The cost of summer day camp could be included as an employment-related child care expense if the day camp was provided in lieu of child care. In other words, if the child had not attended day camp, would the employee then have to pay for other childcare? Consider whether or not the employee paid for childcare before and after day camp.
2. Question: Is there any age limit of the child receiving childcare?
Answer: In order to qualify as a reimbursement with the IRS, the child must be under age 15.
3. Question: Do child support payments made by a divorced/separated parent qualify as an employment-related child care expense?
4. Question: Is the childcare reimbursement considered reportable income?
Answer: Reimbursements are not considered reportable income. (Refer to IRS Form 2441).
5. Question: Can I collect reimbursement for each child I send to a childcare provider?
Answer: No -- the reimbursement is per family, not per child.