Copayment (Copay)

If you are a family receiving child care assistance through New Jersey’s Department of Human Services, Division of Family Development, federal law requires families to share in the cost of child care using a sliding fee scale (meaning cost is adjusted depending on your income). This fee is known as copayment or copay. What factors are considered when determining the copayment amount? Copayment amounts are based on the household’s income, family size, hours of care (part-time or full-time), and number of children receiving services through the Child Care Assistance Program (CCAP). Copayments are assessed at three different income thresholds:

At or below 100% of the Federal Poverty Level (FPL)

Income at 101% up to 200% of the Federal Poverty Level (FPL)

At or above 201% of the Federal Poverty Level (FPL)

Copayment percentages are as follows: Family income at or below 100% FPL

Full-Time Part-Time One Full-Time/One Part-Time One Child Two or More Children One Child Two or More Children Two or More Children waived waived waived waived waived

Family income of at least 101% and up to 200% of FPL

Full-Time Part-Time One Full-Time/One Part-Time One Child Two or More Children One Child Two or More Children Two or More Children 4% of income 6% of income 2% of income 3% of income 5% of income

Family income is 201% of FPL or greater

Full-Time Part-Time One Full-Time/One Part-Time One Child Two or More Children One Child Two or More Children Two or More Children 5% of income 7% of income 2.5% of income 3.5% of income 6% of income

How can I calculate my copayment to know the exact amount I have to pay? There are several ways to help you understand and determine your copayment amount.

Your copayment amount will be automatically calculated for you and printed on your PAPA issued by your local CCR&R.

You can contact your local CCR&R.

You can estimate your copayment by multiplying your monthly income by the above percentage that applies to your situation.

You can review the Copayment Schedule .

Important Reminder – copayments are based on household income, family size, hours of care (part-time or full-time), and number of children receiving assistance (whether 1 or 2). Why might I still owe money to my provider after I pay my copayment? The state has set payment rates for the Child Care Assistance Program. These rates vary depending on several factors including the age of the child and the type of provider (whether you are using a licensed child care center or a registered family child care provider) and whether the provider meets Grow NJ Kids high-quality standards. The state rate may cover the entire cost of your child’s care. However, if your provider charges more than what the state covers, you are responsible for paying the difference. This is called an overage. This overage is separate from the copay and other fees your child care provider charges for specific purposes (e.g., field trips and late fees). You are responsible for paying these fees directly to your provider. In certain situations, if your child care provider charges more than the state payment rate, they may choose not to charge you the overage or otherwise negotiate a lower rate. How often do I have to pay a copayment? You are responsible for paying your copayment for the time period indicated on your PAPA. Please discuss with your provider to determine the frequency at which your copayment is due, such as weekly, monthly, etc. You will directly pay your copayment to your provider. What are some examples of copays and overage amounts? To give you an example, first, we need to determine the type of setting, for example whether you are using a licensed child care center, registered family child care provider or approved home (in home or family, friends and neighbor) and then locate your income level on the Income Eligibility Chart . Once you’ve determined the type of child care facility and your income level based on your family size, you can calculate the copayment you’ll be required to pay by reviewing the Copayment Schedule . Example One There is one parent and one child in the family, for a family size of two. Let’s assume your family earns an income of $31,000 a year, or $2,583 a month (family income between 101% and up to 200% of FPL). The one child is in full-time care, so you’ll be required to pay 4% of your annual gross income, which equals a total yearly copayment of $1,240. This would be divided monthly, so your monthly copayment to your provider would be $103.33.

Ages of Children Provider Monthly Rate CCAP Payment Rate* Overage Monthly Copayment Total Family Cost Infant $1,700.00 $1,587.69 $112.31 $103.33 $215.64

Example Two There are two parents with two children, for a family size of four. Let’s assume your family earns a gross income of $61,000 a year, or $5,083 a month (family income between 101% and up to 200% of FPL). One child is in full-time care and one is in part-time care. You’ll be required to pay 5% (4% first child and 1% second child) of your annual gross income, which equals a total yearly copayment of $3,050. This would be divided monthly, so your monthly copayment to your provider would be $254.17.

Ages of Children Provider Monthly Rate CCAP Payment Rate* Overage Monthly Copayment Total Family Cost Infant (P/T) $900.00 $793.85 $106.15 $254.17 $397.82 Preschool $1,300.00 $1,262.50 $37.50

Example Three There are two parents with three children, for a family size of five. Let’s assume your family earns a gross income of $91,000 a year, or $7,583 a month (family income above 200% FPL). Three children are in full-time care, you’ll be required to pay 7% (5% first child, 2% second child, 0% third child) of your annual gross income which equals a total yearly copayment of $6,370. This would be divided monthly, so your monthly copayment to your provider would be $530.83.

Ages of Children Provider Monthly Rate CCAP Payment Rate* Overage Monthly Copayment Total Family Cost Toddler $1,500.00 $1,414.00 $86.00 $530.83 $691.83 Preschooler 1 $1,300.00 $1,262.50 $37.50 Preschooler 2 $1,300.00 $1,262.50 $37.50

*For all three examples, we used the licensed child care provider rate . In certain situations, the child care provider may offer discounted rates for siblings and also may waive the overage amount or otherwise negotiate a lower rate. The Child Care Assistance Program does not provide services to negotiate the overage, that is the responsibility of the family and the child care provider.