c. Discretion to Withhold for Employment Related Obligations

Parents shall be informed that there may be state and federal requirements to withhold employment related obligations from wages paid by parents to in-home child care providers to the extent the provider is not considered to be self-employed or a self-contractor, and is considered to be the employee of the parent.

The CCAP administrator may, if requested by commissioner, deduct amounts for employment related obligations from benefit payments for in-home child care services if parent of the child for whom the benefit is paid is determined to be the employer of the provider. Any amounts withheld shall be properly deposited with the appropriate federal or state agency. Parents and providers shall receive notice of all deductions made in accordance with this subdivision.