Effective Date: 12/01/05
Revisions:  07/01/07, 7/1/08, 6/7/10, 9/10/10, 02/22/13
Reference: 89 Ill. Adm. Code, Chapter IV, §50.110


Policy Statement:

Child care services received by a family must be reasonably related to the hours of training or employment including the transportation needs of the family.

Procedure:

  1. Standard Employment Procedures and Required Documentation
    1. An applicant must submit the two most recent and consecutive pay stubs of all family members 19 years of age and over to verify earnings. The two most recent and consecutive pay stubs are the only acceptable documentation if a client has been employed long enough to receive two or more pay stubs.
      1. The date the client signs the application or redetermination and how often the client is paid by their employer must be considered when determining whether or not the pay stubs are the most recent and consecutiveOne stub can be up to 60 days old if the individual is paid once a month, 45 days old if they are paid twice a month.
      2. If the applicant is eligible, approve the case for six (6) months.
    2. A computer printout or Direct Deposit slip is acceptable and should:
      1. State the company name,
      2. State the name of the client,
      3. State the rate of pay,
      4. State the number of hours worked per week
      5. If the computer printout meets the above criteria and the client is eligible, approve the case for six (6) months, 12 months if a collaboration case.
    3. If a client has a new job and is unable to produce pay stubs, an employment and income verification letter is required. An employment and income verification letter is only acceptable if the client has not been employed long enough to receive two pay stubs. The employment verification letter must:
      1. Be on company letterhead stationery;
      2. State the name of the client;
      3. State the rate of pay;
      4. State the number of hours worked per week;
      5. State the employee's schedule;
      6. Be signed by an official representative of the employer (i.e. staff member from human resources, personnel, or payroll; or owner of small business) and include the representative's name, title, and phone number; and
        1. If the letter of employment meets the above criteria and the client is eligible, approve the case for three (3) months.
        2. Approximately 6 weeks prior to the eligibility ending date, the Child Care Tracking System will automatically issue a Redetermination form (3455E).
        3. The client must submit the two most recent and consecutive pay stubs with the Redetermination form.
        4. If the client remains eligible, approve the case for six (6) months
      7. If the individual has not worked two full pay periods at the time they apply or redetermine for CCAP:
        1. Calculate what the expected monthly income would be based on the number of hours worked and wages as reported on:
          1. the partial pay stub,
          2. Income/Employment Verification letter submitted from the employer or
          3. as reported on the CCAP application.
        2. Approve the case for 3 months and require the two most recent and consecutive pay stubs at the redetermination assessment.
        3. Pay stubs can be submitted before the redetermination period in order to document less income than calculated and a reassessment to the co-payment amount.  The new co-payment would go into effect the month following reassessment.
  2. Self-employment and Cash Pay Procedures and Required Documentation
    1. Do not use these procedures for an employee who is paid in cash but the employer withholds taxes.
    2. Self-employment includes, but is not limited to: small business, farming, sales, lawn care, snow removal, domestic work, and rental income received as a result of a client's efforts in managing rental property.
    3. If the self-employment activity is performed in the home, the activity does not establish a need for care and child care services should be denied.
    4. Documentation to support self-employment includes:
      1. A copy of the most recent, signed federal income tax return and all applicable schedules and attachments. After April 15th of each year, only the tax return for the previous year is acceptable. If the tax return was submitted electronically, the client must provide a copy of the receipt in the absence of a signature.
      2. If a tax return is not available, a monthly statement of earnings and expenses must be submitted until an income tax return is submitted.
        1. Give a self-employed client a supply of form IL 444-2790, Self-Employment Record, to keep records of their monthly self-employment income and expenses. Use of this form is not required.
        2. The client's records may serve as proof of income and expenses. Accept the client's records unless the information is questionable. If the information provided by the client is questionable, request additional documentation.
        3. If the client is eligible, approve the case for three (3) month intervals until the federal income tax return is submitted.
        4. If the client remains eligible after the submission of federal income tax return, approve the case for six (6) months.
      3. If a client is paid in cash, a payment verification letter is required from each individual who pays the client in cash for performing a service. This information may also be provided on your in-house income verification form. All verifications must include the following information:
        1. The name, address, and phone number, of the individual completing the letter;
        2. the type of work performed;
        3. the date(s) the work was completed or if the activity is on-going;
        4. the rate of pay; and
        5. the employee's schedule.
      4. A client may not complete their own verification letters.
      5. If the client is eligible, approve the case for three (3) month intervals until federal tax returns are submitted.
      6. If the client remains eligible after the submission of federal income tax returns, approve the case for six (6) months.
      7. If a person is working under contract, obtain a copy of the contract for services.
        1. If eligible, approve the case for the length of the contract or six (6) months, whichever is less.
    5. If the expenses exceed the gross receipts, the self-employment income will be zero (-0-). Those additional expenses which exceed the gross receipts will not be subtracted from other earned or unearned income in the household.
  3. If the number of hours worked cannot be verified, the amount of child care services allowed shall not exceed the documented income divided by the current State minimum hourly wage.  This policy is meant only as a method to calculate the number of approvable hours for cases that provide no documentation of activity hours. This policy does not imply that any client must make the State minimum wage in order to be eligible for assistance. Example: Client reports that she cleans 5 homes per week and only earns $100 per week. To calculate the number of hours/days to approve, divide $100 by $8.25 (State minimum wage effective 7/1/10) = 12.12 hours. Depending on the client's actual work/transportation schedule, the client could be approved for either:
    1. 1 full and 1 part time day,
    2. 2 full and 1 part day, or
    3. 3 part days of care.
  4. Ask the client what their prefences are for eligible day approval based on the number of hours calculated, plus travel time.  Inform the client that they should begin documenting their hours at work.