1. Maryland Child Care Subsidy Provider Information
Orientation and Overview

2. Welcome
This presentation is an orientation and overview of The Child Care Subsidy Program.
As you go through the slides you will learn about:
The Child Care Subsidy Program
The types of child care providers
The responsibilities of the provider, family, Child Care Subsidy Central, the Local Department of Social Services (LDSS) and the Maryland State Department of Education
Getting paid for the services you provide
Payment policies
Developing your business practices
Who you contact with a question or problem

3. Child Care Subsidy Welcome to Maryland’s Child Care Subsidy program.
Our program is a partnership between parents, providers, and the Division of Early Childhood Development of the Maryland State Department of Education
Thank you for providing care for children whose families receive Child Care Subsidy.

4. Provider Types
In Maryland, parents have a range of choices available to them when choosing a child care provider.
Formal Care, which consists of Registered Family Child Care Homes and Licensed Child Care Centers
Informal Care, which is relative care, in-home care, and babysitting

5. Provider Types Formal Child Care: Informal Child Care:
The Office of Child Care Licensing Branch monitors and licenses family child care homes and child care centers.
Informal Child Care:
The parent has set up a legal child care arrangement. The potential provider is required to apply for a fingerprint-supported State and Federal criminal background check and submit a signed affirmation of compliance with child care health and safety standards. Further, each individual 18 years old or older who is a resident in the home must apply for a fingerprint-supported State and Federal criminal background check. The informal provider is not required to be licensed, however, they must:
Be a relative, or
Provide care in the child’s own home.

6. Providers are Independent Contractors
This means:
MSDE - Maryland Child Care Subsidy is not the child care provider’s employer
The parent is the employer
Maryland’s Child Care Subsidy program does not determine your hours of operation, cost of child care and/or how child care services are provided
Maryland’s Child Care Subsidy program does not withhold or pay income or payroll taxes and/or provide fringe benefits for child care providers
Maryland issues subsidy reimbursement to child care providers on behalf of families enrolled in the Child Care Subsidy Program.

7. Provider Responsibilities
Provider responsibilities include:
Maintaining a facility that is licensed
Maintaining health and safety standards
Keeping accurate attendance and financial records
Completing the invoices with accurate information based on attendance records, and return them in a timely manner
Communicating with the families of children in care to ensure vouchers are renewed timely

8. Family Responsibilities
Families responsibilities include:
Reporting to CCS Central any changes in provider, family income, or parent activity
Paying the weekly co-payment to the provider
Providing to CCS Central information to determine the family’s eligibility and authorizing child care correctly
Understanding their contractual obligations to the child care provider.

9. CCS Central Responsibilities
The Child Care Subsidy Central (CCS Central) Office’s responsibilities include:
Establishing a family’s eligibility for subsidized child care
Giving a family and provider 5 days advance notice if their child care benefits are being reduced, terminated or suspended
Answering questions regarding eligibility

10. LDSS Responsibilities
The Local Departments of Social Services (LDSS) Office’s responsibilities include:
Establishing a family’s eligibility for subsidized child care – Temporary Cash Assistance (TCA) cases ONLY
Giving a family and provider 5 days advance notice if their child care benefits are being reduced, terminated or suspended
Answering questions regarding TCA eligibility

11. MSDE Responsibilities
The Maryland State Department of Education (MSDE) responsibilities include:
Oversight of the Child Care Subsidy Program
Determination of eligibility for the Child Care Subsidy Program through Child Care Subsidy (CCS) Central and the Local Departments of Social Services (for TCA ONLY)
Payment of invoices submitted by child care providers through Maryland Child Care Subsidy Payment Processing (MDCCSPP)

12. Getting Paid for Services Provided
All completed, signed vouchers must be sent to CCS Central for receipting (attaching to the accepting provider). Completed vouchers may be faxed to or mailed to the address on the next slide.
Invoices are mailed to providers every two weeks for each service period.
All children with receipted vouchers are pre-printed on the invoice.
If a child’s name does not appear on the invoice, speak with the parent to make sure the signed voucher was returned to CCS Central.
If the voucher was returned, the child’s name will appear on an adjusted invoice
Do not write in the name of the child on your invoice

13. Getting Paid To initiate payment:
As soon as the service period is over the invoice must be accurately completed, signed and sent to MDCCSPP:
Mail: FAX:
MDCCSPP
P.O. Box 17543
Baltimore, MD
(This number is to be used for invoice submission only)

14. Getting Paid
The Invoice Processor at MDCCSPP will review the invoice to ensure that it is filled out completely and signed by the provider
The invoice data is entered into the Child Care Automated Tracking System (CCATS)
Errors on the invoice are a common reason for payment delays, so it is important to take a few extra minutes to double check the information before sending in for payment
Send the invoices only one time for each service period and fax one at a time

15. Getting Paid
Once the Invoice Processor has signed off on the invoice, the Supervisor reviews the information and gives the final approval in CCATS.
After the invoice is approved by MDCCSPP, the request for payment is processed through MSDE Accounting and the Comptroller’s Office which will take 7-10 business days
Invoice Detail Report
Once the payment is approved and the payment processed through the Comptrollers’ Office, providers will be sent an invoice detail report.
The report will specify payment for each child receiving child care subsidy.
Review the report carefully to ensure that proper payment has been issued for each child.
It is good business practice to keep copies of all invoice detail reports for tax purposes.

16. Payment Policy
Reimbursement rates are based on a market rate survey for the cost of child care.
The rate established for each payment region is determined by the information obtained from providers about the amount they charge to families in care.
Rates are grouped by type of care and areas of the State based on fees charged to families.
For information on payment rates visit

17. Payment Policy
A provider is paid only for the time authorized by the terms stated on the voucher.
If the fee you charge to families is more than the amount on the voucher, you are responsible for ensuring that families are aware of the difference in the amount of the voucher and the fee charged to families
Families must be informed of any additional fees they may be charged above the amount the State is agreeing to reimburse the provider on behalf of the family
For example:
If the voucher issued is for $100 and the assigned parent co-pay amount is $10, but the provider charges $150 for the child care slot – there is a difference of $40.
It is the responsibility of the provider and parent to agree to the fee. The State has determined that the parent is required to pay a co-payment in the amount of $10. However, the provider may add the difference of $40 to the amount required of the parent for the care of their child.
The provider may not charge a family receiving a child care subsidy voucher more than another family in care. Therefore, if your tuition is $110 per week, then this same family would not have an additional amount due to you. The State reimbursement and parent co-pay would cover the entire cost of care for the child.

18. Payment Policy
Family Child Care and Child Care Center Providers are paid for:
Six holidays each year including:
New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day
Days the State or local government declares a weather emergency
Voluntary closure days when child care services are not provided as long as the parent and MDCCSPP are given at least two weeks written notice of the closure
Child absences up to 60 days per calendar year.

19. Payment Policy Informal Providers are: Paid: Not paid:
Only for the time the child receives care
Voluntary closure days when child care services are not provided as long as the parent and MDCCSPP are given at least two weeks written notice of the closure
For holidays documented as worked
Not paid:
Automatically for any holidays, or
Child absences

20. Parent Co-Pay
The intent of the Child Care Subsidy Program is to assist eligible families with the cost of child care.
Most subsidy customers will be assessed an assigned co-payment based on their income
The assigned co-pay is federally mandated to assure that families are contributing to the cost of child care
The amount of the co-payment will show on the voucher issued to the parent
Parents are responsible for paying the co-pay directly to the provider, as well as any additional agreed upon fee

21. Developing Your Business Practices
Whether you are a licensed child care provider or an informal provider, you can benefit from developing good business practices such as:
Entering into a contract with parents
Keeping appropriate and complete documentation
Establishing a method to track and pay taxes on the money earned, and
Participating in professional development activities and, if eligible The Maryland Child Credential Program

22. Contracts
A contract between you and a family can prevent misunderstandings about payment expectations and other issues such as hours and days of care, food service, child guidance practices, fees, closure days, and other child care policies and practices.
Contracts should be established before care is provided and updated as needed, but at least once per year.

23. Documentation
Maintaining copies of vouchers, invoices, Invoice Detail Reports and payment records is good business practice
Setting up a filing system will help you keep organized
Monitoring when a voucher will expire is important and communicating with parents about a voucher ready to expire can eliminate late reimbursement payments or denial of reimbursement.

24. Taxes
The Maryland State Comptroller’s Office will automatically mail a 1099 Form to you each January for income tax purposes if the amount paid to you during the previous calendar year was $600 or more.
It is important for you to comply with all Internal Revenue Service (IRS) regulations. For questions or specific filing information contact the IRS at
The Maryland State Department of Education does not withhold taxes from child care reimbursement payments. You are self-employed and responsible for all tax liability to the State and Federal government.

25. Professional Development
Professional development, completing training, is good for you and the children for whom you are providing care
Training is categorized into six major areas known as the Core of Knowledge:
Child Development
Curriculum
Health, Safety and Nutrition
Special Needs
Professionalism, and
Community (knowing your community resources and diversity)
Taking training in a variety of areas helps you develop skills and knowledge to improve your business and your day-to-day interactions with the children in your care and their families

26. Professional Development Resources
The Maryland Child Care Credential Program is available to all licensed and registered child care providers.
It recognizes individuals working directly with children for their education (training), experience and professional activity.
It is a voluntary program, but by participating you could be eligible for bonuses and monetary support to take additional training
For more information about the Maryland Child Care Credential program visit:

27. Maryland EXCELS www.marylandexcels.org/
Maryland EXCELS (EXcellence Counts in Early Learning and School-age Child Care) is a Tiered Quality Rating and Improvement System that recognizes the accomplishments of early childhood and school-age only programs and providers through a set of standards with 5 levels that offer a pathway to high-quality child care.
Participation in Maryland EXCELS is required of any provider accepting child care subsidy vouchers.
Providers publishing a Maryland EXCELS level of 3, 4 or 5 are eligible to receive an additional quality payment (tiered reimbursement).
For more information on Maryland EXCELS visit:

28. Provider Resources Provider Helpline: Electronic Funds Transfer (EFT)
Phone:
Electronic Funds Transfer (EFT)
Tired of waiting for the mail? Sign up for EFT. The Comptroller’s Office will deposit your money directly into your bank account. For more information visit:

29. More Resources Child and Adult Care Food Program
Is a key source of support for child care providers and programs.
Provides:
Reimbursement for food and meal preparation costs,
Ongoing training, and
Onsite technical assistance.
For additional information visit:
or call

30. Child Care Associations and Organizations
Child care associations and organizations provide child care providers with support, networking, training and information about child care practices and standards. There are statewide and local organizations. The statewide organizations include:
Maryland Child Care Association (center association) or
Maryland State Family Child Care Association or
SEIU 500 – Kids First Maryland or