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Child Care Subsidy Provider Handbook 34 Indirect Expenditure Considerations 1. This is more complicated because it involves prorating the portion of the house used for caregiving. Indirect expenditures include a portion of rent, mortgage, interest, property tax, utility bills and even the telephone. 2. Depreciation is a major item and should be investigated by the provider. Each provider will have a unique item or area eligible for consideration. 3. For your protection, it is wise to consult the Internal Revenue Service as soon as possible. Remember, two days before April 15 is too late. The best advice to a provider who desires to use the business deduction method is to save receipts and canceled checks for the customary period in the event of an audit. Insurance Sense Liability insurance is required for licensed providers. If you transport children, be sure your automobile insurance covers the child care children. In some cases, a good homeowner or renter policy is adequate. Discuss this with your insurance agent. The crucial thing to remember is the need for you to offer good supervision. This will reduce the likelihood of accidents. You have a responsibility to call a physician or ambulance in case of any serious injury, in addition to contacting the child’s parent/caregiver. The physician will decide whether or not to treat the child if the parent/caregiver cannot be reached. Child Care Deductions/Flex Dollars Some parents/caregivers may claim child care deductions on their income taxes or may have a flexible benefit option with their employer and will require a receipt for care given. It is a good idea to buy a receipt book with a carbon copy to be kept for your records. You may also be asked to provide your Social Security or Federal Identification (FID) number. Small Claims Court/Collections Providers may file in small claims court to recover child care money owed by parents/caregivers. There will be a fee, plus costs associated with serving a subpoena. Check with your local court to find out the exact cost and determine whether to pursue this option. Contact the clerk magistrate of your county court to begin the process. Providers may also choose to send unpaid invoices to a collections agency, which typically require a $1,000 minimum debt owed. PROVIDER GRANTS There are a variety of grants available to child care providers in Nebraska. Staff in the DHHS grants office are available to assist you. To learn about grant opportunities and how to apply, explore these resources: DHHS Grant Opportunities dhhs.ne.gov/Pages/Child-Care- and-Development-Fund-Grant- Opportunities.aspx Child Care Grants Helpline 402-417-3259 ChildCareGrants@nebraska.gov • Parents/caregivers must be notified of the amount they owe and that the debt will be sent to a collections agency if not paid. • Allow 30 days for debt to be paid. » Do not harass, threaten or use abusive language. Be polite but firm. • If the invoice remains unpaid, it may be sent to a collections agency. Most experts recommend waiting 90 days after an invoice is due before sending it to a collections agency. • Keep all records of correspondence. If the family disputes the debt, this shows proper procedures were followed and proves the debt exists. • You may need to provide contact information for the individual from whom the debt is being collected. Choosing an agency: • Ask other child care providers, family and/or friends for recommendations. • Take advantage of free consultations. • Check with the local chamber of commerce and Better Business Bureau. Collections agency fees: • Fees are based on a percentage of the collected debt . • Amounts range from 33 to 50% of debt owed, but are usually around 40%. • Agency may assess other charges. Note: Contact your RD if you are having trouble collecting a family fee.