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102 C. Child Placed at a Provider with Rate above MRR

Providers that have private tuition rates above the MRR have the option to charge CCSP-participating families the difference. Parents are responsible for making these payments directly to the provider, unless the LDSS elects to pay the additional amount with local-only funds for all parents who must pay a charge above the MRR.

When agencies use local-only funds to subsidize the cost of care above the MRR, this local procedure must be approved by the local board of social services and recorded in the minutes, including the maximum allowable subsidy. A copy of this locally approved procedure must be kept on file at the LDSS and available for review by state monitors and/or auditors. Subsidy decisions must not be made on an individual case basis. Reimbursement cannot be requested by the LDSS for these expenses.

D. Direct Payment to Provider

VDSS will make payments for child care subsidy by means of direct payment to the provider upon submission of time and attendance data recorded on Electronic Child Care (VaECC). This is the standard method of payment to be used.

LDSS must use the Child Care Purchase of Service Order form to authorize direct payment to providers.

E. Payment for In-Home Care

Before authorizing payments for in-home care, LDSS must assure that the definition of in-home child care is met. The cost for in-home care must not exceed the local MRR and must meet state and federal minimum wage requirements. The cost may be above the local MRR only for children with special needs, not to exceed two times the MRR. The LDSS must have the applicant/recipient sign the Authorization to Act as Agent on Customer’s Behalf for In-Home Care, because for in-home care, FICA (Social Security and Medicare taxes) and unemployment taxes will be withheld and paid by the Department.

In-home care may be approved when the total child care cost does not exceed the local MRR and still allows authorized payment of at least the Virginia minimum wage. Although the Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage, in-home providers fall under Virginia minimum wage provisions due to the IRS’s determination that the provider and parent have a common- law employer-employee relationship. Employers of in-home providers should be aware of both federal and state labor laws. Informational resources are available at www.dol.gov/agencies/whd/flsa. The amount paid to the provider for the number of hours per week for child care needed, must not exceed the MRR per individual child. These calculations must be completed outside of VaCMS.

In-Home Care Restrictions: CCSP funds cannot be used to pay for in-home care provided by an individual who resides in the same household as the child receiving care. For example, if a grandparent lives in the same home as both the child and the parent, that grandparent is not eligible to receive CCSP funding to provide care for the child.

In-Home Care Calculation: