Please read guidelines before completing Child Care Cost Reimbursement Application

What is This Program?

It offers financial assistance to Vermont State employees for their work-related child care expenses. The funds are made available as a result of the labor/management agreement between the State and the VSEA. This initiative is the result of employee surveys and feedback on child care and child care assistance. The effort is closely modeled on a similar successful program for the Maine State employees that has been in effect since 1987. This program is in its 9th year and is still being evaluated. Comments are most welcome.

What Kind of Child Care is Eligible For Reimbursement?

• Reimbursement will be available for State employees who spent at least $500 dollars for regular, on-going work related child care for children aged 13 or younger.
• Child care must be provided by a registered, licensed or certified legally exempt care provider. You may call the State Child Care Services Division at 1-800-649-2642 to confirm the status of your child care provider.
• The cost of child care provided by relatives who do not fall into one of the above approved provider categories, can not be reimbursed.

The Child & Elder Care Committee invites all eligible Vermont State employees to apply

Who is Eligible?^**

• Full-time State Employees employed between January 1 and December 31 of the program year.

·         Full-time State Employees employed for more than six (6) months but less than 12 months between January 1 and December 31 of the program year (eligible on a prorated basis)

·         Part-time State Employees who have completed one thousand forty (1040) hours of regularly scheduled work between January 1 and December 31 of the program year (eligible on a prorated basis)

AND

whose federal taxable income (after deductions) does not exceed $50,000

·          All permanent employees in the Executive Branch of State Government are eligible.

·          Applicants must be employed as of April 16th of the year following the program year.

^**Above categories include limited service employees, but do not include temporary employees or contract workers

How Will the Program Work?

Interested and eligible employees must first apply. After receiving all of the applications, the committee overseeing the reimbursement fund will sort the applications by household income. Funds will then be allocated within eligible federal taxable income groups under $50,000. All application materials will be held in the strictest confidence.

Are There Tax Implications?

IRS guidelines and eligibility must, by law, apply. This program may not be ideal for everyone. Applicants for child care cost reimbursement who also take a child care income tax credit, may need to amend their tax statements. State employees are advised to consider their own tax status or consult with a tax advisor before applying.

Will this Program Affect My FSA?

State employees who apply for a child care cost reimbursement and who also make use of a Flexible Savings Account (FSA) to pay for child care costs, should take care to properly calculate the total amount of their pre-tax income to be deposited and later withdrawn.

Employees with questions about their FSA should call Jerry Fry at Benefits, Personnel Division, 828 - 3455.

When Should I Apply?

Completed applications should be returned via the United State Postal Service and postmarked no later than April 16 of the application year.

Applicants who submit an extension for filing taxes should send a copy of their extension request along with their reimbursement application. Applications accompanied by a filing extension will be held active until August 15 of the application year.

When Can I expect a response?

All applicants will receive a response, and, if approved, reimbursement checks will be mailed by the end of June of the application year.

How Much Can I Expect to Get Back?

Reimbursements will be affected by the number of applicants. The maximum reimbursement per household is $1,000.

Please mail
completed applications
Postmarked no later than April 16
to:

VT / VSEA Child & Elder Care Committee
P.O. Box 1452
Montpelier, VT 05601