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Subsidized Child Care Assistance Program Policy Manual Chapter 8. Parent fee REVISED 04/27/2026 3

All applicants/recipients who are required to pay a parent fee will pay 10% of their gross monthly income. Once the parent fee is assessed, the applicant/recipient is responsible for paying the parent fee directly to the child care provider. Parent fees for new applicants are effective on the first day the child attends care. Any decrease in a parent fee is to be effective on the first day of the month when the decrease is reported. The parent fee is assigned to the youngest child on the child care case when there is more than one child receiving child care. Example: A change is reported to the worker in February, but the worker did not make the change until March. The decrease should start in February. When an applicant/recipient is deemed income eligible through Food and Nutrition Services (FNS), the parent fee is calculated from the verified gross monthly countable income. When a provider is paid based on a blended rate, the parent fee will be 83% of the full-time parent fee. The parent fee for a 75% and 50% plan of care is 75% of the full-time parent fee. The parent fee will apply for the entire eligibility period. IV. RESPONSIBILITIES REGARDING PARENT FEE A. Responsibilities of the Department of Social Services (DSS) / Local Purchasing Agency (LPA) 1. When subsidized child care is approved, the DSS/LPA must notify the provider and applicant/recipient in writing as to the amount of the Parent fee to be collected from the recipient using the Child Care Voucher (DCD-0446) or Child Care Action Notice (DCD-0450). 2. The LPA must give the applicant/recipient a clear explanation of the Parent fee policy, located on the Rights and Responsibilities NC FAST 20009, the specific charges imposed, and the recipient’s responsibility for payment. 3. Any change in the amount of the Parent fee must be made known to the provider and recipient using the Child Care Action Notice (DCDEE-0450). However, the parent fee cannot increase due to an increase in income or change in the Plan of Care.