Iowa Child Care Provider Stipend

Playground

2023 Tax Guide for Child Care Businesses

Preparing your 2023 taxes for your child care business? From deductions to specific forms, there's a lot to do. Our comprehensive guide will help you out!

2023 Tax Guide for Child Care Businesses

Preparing your 2023 taxes for your child care business? From deductions to specific forms, there's a lot to do. Our comprehensive guide will help you out!

Child care providers in Iowa are eligible to receive between $5,000 and $50,000 stipends for:

  • Employee recruitment and retention bonuses

  • Health and safety expenses such as upgrading equipment or supplies, security/secure entry systems

  • Minor renovation needs to meet regulatory requirements

How to apply:

You MUST apply before January 12, 2024. The application process is simple, it should not take more than 5 minutes.

Who is eligible?

Licensed Child Care Centers and Child Development Homes. Active registration or licensing status will be verified and cross-checked to application for funding to ensure program is operational prior to receiving funds.

How are stipend amounts decided?

Stipends will be tiered based on the size of the program and number of applications received. Award amounts will be determined upon closure of the application period and will range from approximately $10,000 for registered Child Development Homes to $50,000 for the largest child care centers.

Source: Child Care Provider Stipends FAQ

Is this taxable income?

Yes, this funding counts as taxable income to your child care program.

Ideas for how to use the stipend:
  • Upgrade your security with Kisi electronic door locks that integrates into your Playground app. Unlock doors with your phone, allow families and staff to be able to unlock doors at specific hours, with customizable permissions. Lock and unlock your doors directly from your Playground app. Get in touch with us to get started.

  • Provide stipends for staff who stay at your program for more than 12 months, 24 months, etc.

  • Replacing carpet with hard flooring because it is more easily sanitized

  • Replacing an old fridge that no longer keeps a consistent temperature

  • Fencing the outdoor play area

  • Child Development Home providers are able to use funds for a retention bonus.

You are unable to use the funds to increase staff wages.

These funds can be used to support recruitment and/or retention bonuses for staff however, because this is not sustainable funding, using one-time funds to increase staff wages without the ability to sustain the wage increase is not permitted.

What is required in your description for the plans regarding use of funding?

Keep your description to a few sentences. The intent of this question is to list the majority of the expenses that you plan to use the funds on. The Department of Health and Human Services understands that you don't have an exact amount yet and may need to add or remove things from this description at a later time.

How will you receive the funds?

Funds will be sent as checks to eligible programs.
If your program currently receives CCA payments or you have received other stipends or stabilization grants, your information is already on file with the Department of Health and Human Services and you will receive the additional checks in the same manner as your CCA payments (e.g., paper check or direct deposit). If your program does not or has not received CCA or other funds from the Department, we do not have your tax ID information in our systems. Please submit a W9 form for your program to receive a stipend payment.

Complete Form W-9 (Rev. October 2018) (irs.gov) and send to:
E-mail: Wagestax9@dhs.state.ia.us
Mail: Department of Health and Human Services, 5th Floor
Attn: Kim Shackelford

Learn more at these links:


Child care providers in Iowa are eligible to receive between $5,000 and $50,000 stipends for:

  • Employee recruitment and retention bonuses

  • Health and safety expenses such as upgrading equipment or supplies, security/secure entry systems

  • Minor renovation needs to meet regulatory requirements

How to apply:

You MUST apply before January 12, 2024. The application process is simple, it should not take more than 5 minutes.

Who is eligible?

Licensed Child Care Centers and Child Development Homes. Active registration or licensing status will be verified and cross-checked to application for funding to ensure program is operational prior to receiving funds.

How are stipend amounts decided?

Stipends will be tiered based on the size of the program and number of applications received. Award amounts will be determined upon closure of the application period and will range from approximately $10,000 for registered Child Development Homes to $50,000 for the largest child care centers.

Source: Child Care Provider Stipends FAQ

Is this taxable income?

Yes, this funding counts as taxable income to your child care program.

Ideas for how to use the stipend:
  • Upgrade your security with Kisi electronic door locks that integrates into your Playground app. Unlock doors with your phone, allow families and staff to be able to unlock doors at specific hours, with customizable permissions. Lock and unlock your doors directly from your Playground app. Get in touch with us to get started.

  • Provide stipends for staff who stay at your program for more than 12 months, 24 months, etc.

  • Replacing carpet with hard flooring because it is more easily sanitized

  • Replacing an old fridge that no longer keeps a consistent temperature

  • Fencing the outdoor play area

  • Child Development Home providers are able to use funds for a retention bonus.

You are unable to use the funds to increase staff wages.

These funds can be used to support recruitment and/or retention bonuses for staff however, because this is not sustainable funding, using one-time funds to increase staff wages without the ability to sustain the wage increase is not permitted.

What is required in your description for the plans regarding use of funding?

Keep your description to a few sentences. The intent of this question is to list the majority of the expenses that you plan to use the funds on. The Department of Health and Human Services understands that you don't have an exact amount yet and may need to add or remove things from this description at a later time.

How will you receive the funds?

Funds will be sent as checks to eligible programs.
If your program currently receives CCA payments or you have received other stipends or stabilization grants, your information is already on file with the Department of Health and Human Services and you will receive the additional checks in the same manner as your CCA payments (e.g., paper check or direct deposit). If your program does not or has not received CCA or other funds from the Department, we do not have your tax ID information in our systems. Please submit a W9 form for your program to receive a stipend payment.

Complete Form W-9 (Rev. October 2018) (irs.gov) and send to:
E-mail: Wagestax9@dhs.state.ia.us
Mail: Department of Health and Human Services, 5th Floor
Attn: Kim Shackelford

Learn more at these links:


Child care providers in Iowa are eligible to receive between $5,000 and $50,000 stipends for:

  • Employee recruitment and retention bonuses

  • Health and safety expenses such as upgrading equipment or supplies, security/secure entry systems

  • Minor renovation needs to meet regulatory requirements

How to apply:

You MUST apply before January 12, 2024. The application process is simple, it should not take more than 5 minutes.

Who is eligible?

Licensed Child Care Centers and Child Development Homes. Active registration or licensing status will be verified and cross-checked to application for funding to ensure program is operational prior to receiving funds.

How are stipend amounts decided?

Stipends will be tiered based on the size of the program and number of applications received. Award amounts will be determined upon closure of the application period and will range from approximately $10,000 for registered Child Development Homes to $50,000 for the largest child care centers.

Source: Child Care Provider Stipends FAQ

Is this taxable income?

Yes, this funding counts as taxable income to your child care program.

Ideas for how to use the stipend:
  • Upgrade your security with Kisi electronic door locks that integrates into your Playground app. Unlock doors with your phone, allow families and staff to be able to unlock doors at specific hours, with customizable permissions. Lock and unlock your doors directly from your Playground app. Get in touch with us to get started.

  • Provide stipends for staff who stay at your program for more than 12 months, 24 months, etc.

  • Replacing carpet with hard flooring because it is more easily sanitized

  • Replacing an old fridge that no longer keeps a consistent temperature

  • Fencing the outdoor play area

  • Child Development Home providers are able to use funds for a retention bonus.

You are unable to use the funds to increase staff wages.

These funds can be used to support recruitment and/or retention bonuses for staff however, because this is not sustainable funding, using one-time funds to increase staff wages without the ability to sustain the wage increase is not permitted.

What is required in your description for the plans regarding use of funding?

Keep your description to a few sentences. The intent of this question is to list the majority of the expenses that you plan to use the funds on. The Department of Health and Human Services understands that you don't have an exact amount yet and may need to add or remove things from this description at a later time.

How will you receive the funds?

Funds will be sent as checks to eligible programs.
If your program currently receives CCA payments or you have received other stipends or stabilization grants, your information is already on file with the Department of Health and Human Services and you will receive the additional checks in the same manner as your CCA payments (e.g., paper check or direct deposit). If your program does not or has not received CCA or other funds from the Department, we do not have your tax ID information in our systems. Please submit a W9 form for your program to receive a stipend payment.

Complete Form W-9 (Rev. October 2018) (irs.gov) and send to:
E-mail: Wagestax9@dhs.state.ia.us
Mail: Department of Health and Human Services, 5th Floor
Attn: Kim Shackelford

Learn more at these links:


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Iowa Child Care Provider Stipend

Published Dec 22, 2023

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