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Subsidized Child Care Assistance Program Policy Manual Chapter 8. Parent fee REVISED 04/27/2026 15

during the certification period and the income was obtained at initial application. • Refer to Chapter 11, Section C. item 3: Temporary Changes when an applicant/Recipient reports new income after a job search/job loss, or when a Level of Care change is reported back to the initial higher level of care at the beginning of the certification period.

If the recipient later reports a new change in income that is higher than the income assessed at initial application or recertification; the parent fee can only be reinstated up to the parent fee amount assessed at application or most recent recertification. At the annual recertification, the income and parent fee can increase on the first day of the month following the 10-work day notice. C. Parent Fee Adjustments for Child Care Benefits

Money from a child care benefit is counted as part of the allowable cost of care. Money from the benefit is first applied to the parent fee; any remaining amount is subtracted from the amount the LPA pays to the child care facility/provider. The child care worker must document this information into NC FAST and add an explanation in the comments section of the voucher or action notice. If the parent/responsible adult is employed by a child care facility who offers an employee discount, the discount is not considered when determining parent fees and payments. • When an employer benefit is less than the parent fee, the applicant/recipient pauses the benefit amount to help pay the assessed fee amount.

• The voucher/action notice would show the actual parent fee amount calculated in NC FAST.

• When an employer benefit is more than the parent fee, the applicant/recipient will use the benefit to pay the parent fee. The remaining benefit amount is then subtracted from the allowable cost of care in NC FAST. The applicant/recipient would pay the entire