9.6 Payments to Families
ISSUE DATE: 05/2025
Make payments directly to the family when a provider cares for children in the children’s own home. This applies whether the provider is licensed or legal nonlicensed (LNL).
CCAP prohibits child care assistance to be paid to a provider that resides in the same household or occupies the same residence as the child.
CCAP only allows child care assistance for care authorized in the child’s home if the child’s parents have authorized activities outside of the home (or in a two parent household, one parent has been determined unable to care) and if one or more of the following circumstances are met:
OR
OR
See Chapter 11.27 (In-Home Child Care Requests and Provider Information) for in-home child care request instructions.
If the provider is licensed at an address where the child does not live, but the provider provides care for a child in the child’s home, the provider is providing legal nonlicensed care for that child and, for that care, should be paid up to the maximum legal nonlicensed provider rate when the parent meets the above listed criteria for authorized activities and is approved by the Department of Children, Youth, and Families (DCYF).
When your agency pays the parent(s) and he/she fails to pay the provider, the family is ineligible for child care assistance until:
OR
AND
Do NOT require the family to pay providers in advance of receiving payment from the child care fund as a condition for receiving these payments.
Monitor these payments to ensure funds are used for child care, following your agency’s established process.
The family is responsible for meeting any employer-related requirements when the care is provided in the child’s home.
A 1099 form is issued by DHS to the in-home provider at the end of the year. See Chapter 9.3 (Payments to Providers) for information about tax form issuance.
Fact Sheets on minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) are available at www.dol.gov/whd. Give these fact sheets to all people who employ in-home child care providers.
Legal authority
Minnesota Statutes 142E.10, subds. 8, 11 and 14
Minnesota Rules 3400.0110, subp. 1
Minnesota Rules 3400.0035, subp. 9
Minnesota Rules 3400.0040, subp. 6a
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