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Child Care Subsidy Policy October 1, 2024 25 Child care funds cannot be used to support employment with employers who do not comply with West Virginia Tax Department or Federal tax withholding laws. A. West Virginia Income Tax Withholding: West Virginia income tax must be withheld from wages paid to resident employees for services performed either within or without the state and from wages paid to nonresident employees for services performed in the state. This amount must be listed on the pay stub received by the employee. It is possible, depending upon earnings, family size and withholding status for this amount to be “$0.” B. Federal Income Tax Withholding: 1) Non-self-employed: Federal income tax and Federal Insurance Contributions Act (FICA) tax (social security, Medicare, etc.) must be withheld from wages paid to resident employees for services performed and from wages paid. This amount must be listed on the pay stub received by the employee. It is possible, depending upon earnings, family size and withholding status for these amounts to be “$0.” 2) Self Employed: A tax similar to the FICA tax is imposed on the earnings of self-employed individuals, such as independent contractors. This tax is imposed not by the Federal Insurance Contributions Act but instead by the Self- Employment Contributions Act of 1954. This tax payment should be reflected on Schedule C of IRS Form 1040 and calculate the self-employment tax on Schedule SE of IRS Form 1040. Estimated taxes must be paid quarterly using form 1040-ES if estimated tax liability exceeds $1,000. 3.6. Minimum Qualifying Activity Participation Hour Requirement 3.6.1. Working Recipients: Any recipient of child care assistance who is an employee in the private or public sector must work at least 20 hours per week. If the recipient is not working at least 20 hours per week, the recipient will not be eligible for child care services. 3.6.2. WV Works: WV WORKS participants must participate in Job Training/Educational Activities their qualifying Works activity at least 20 hours per week or to the maximum extent assigned by the WV WORKS Family Support Specialist. WV Works recipients who do not meet this requirement are not eligible for child care services: 3.6.2.1. Job training participants must participate in their qualifying activity to the maximum extent possible as assigned by the job training program or employer. Recipients participating in job training activities less than 20 hours per week will not be eligible for child care services.