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Subsidized Child Care Assistance Program Policy Manual Chapter 8. Parent fee REVISED 04/27/2026 7

a voucher for another provider can be issued. iii. The provider must notify the LPA that a repayment agreement has been developed and that a payment plan with the parent and/or the outstanding one-month balance has been paid in full. When the LPA is notified, services may continue.

iv. The provider must give the recipient a dated receipt for payment of the parent fee, as payment is received. Receipts should include the period that the payment covers and the type of payment (such as child care, registration, parent fee, outstanding balance, etc.). v. The provider must retain copies of these receipts for at least three (3) years, and they may not be destroyed until authorized by DCDEE or the LPA. Recipients should be encouraged to retain receipts as well; in case they need to verify that the fee has been paid for a month. If there is no repayment agreement and the parent has not paid the parent fee, the LPA must document in the record the reason services are terminated and the amount of the unpaid parent fee. The provider or recipient must submit verification when the parent fee are paid.

V. DETERMINATION OF THE PARENT FEE AMOUNT Parent fees are the same across the state for all types of child care arrangements. The parent fee is 10% of the gross monthly income. To ensure the parent fee does not exceed 10% of gross monthly income, the child care worker must multiply the gross monthly income by .10 and round down to the nearest dollar to determine the monthly amount the applicant is responsible for paying. For example, if the parent fee calculation results in $234.75, the parent fee is rounded down to $234. To determine the daily fee, divide the parent monthly fee by 21.67. The daily parent fee rates are rounded to the nearest cent. A Parent fee is assessed if countable income is received. It is based on the family’s gross income.