01.03.02 - Employment

Effective Date: 12/01/05
Revisions:  07/01/07, 7/1/08, 6/7/10, 9/10/10, 02/22/13, 10/1/18, 12/12/19, 12/1/22, 2/26/24
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 - Pay Stubs

   1. Applicants and 2nd parent/guardians that are employed must submit two pay stubs that have pay dates 60 or fewer days old from the date the child care form (Application, Redetermination, Change of Information...) is received to verify earnings. 
   2. Applicants/2nd parents/guardians who are paid once per month must submit two pay stubs that have pay dates 90 or fewer days old from the date the child care form is received to verify earnings.
   3. The date the child care form is received and how often the client is paid by their employer must be considered when determining whether or not the pay stubs are acceptable.
      1. Pay dates can be up to 60 days old if the individual is paid weekly, biweekly or semi-monthly.
      2. Pay dates can be up to 90 days old if they are paid once a month. 
   4. If the applicant is eligible, approve the case for twelve (12) full months.

2. Standard Employment Procedures and Required Documentation - Other Types of Acceptable Documentation.

   1. 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 unless salaried.
      4. State the number of hours worked per week unless salaried.
      5. If the computer printout meets the above criteria and the client is eligible, approve the case for twelve (12) months.
   2. If a client has a new job and is unable to produce pay stubs, an employment and income verification letter or the IDHS Income Verification form IL444-4831 (pdf) is only acceptable if the client has not been employed long enough to receive two full pay stubs. The employment verification letter must:
      1. Be on company letterhead or 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.
         1. If the letter of employment meets the above criteria and the client is eligible, approve the case for twelve (12) months.
         2. Approximately 6 weeks prior to the eligibility ending date, the Child Care Management System will automatically issue a Redetermination form (3455E).
         3. The client must submit the two acceptable  pay stubs with the Redetermination form.
         4. If the client remains eligible, approve the case for another twelve (12) months.
      7. If the individual just recently started working and did not have 2 full and acceptable pay stubs at the time they applied or redetermined for CCAP, the pay stub that reflected the regular work schedule may be used twice unless an employment letter was received (use the reported employment start date to determine whether the client already had 2 full pay stubs).
         1. Approve the case for 12 months and require two acceptable pay stubs at the redetermination assessment.
         2. 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.

3. Self-employment Procedures and Required Documentation

   1. 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.
   2. 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.
   3. 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. If the client is eligible, approve the case for twelve (12) months.
   4. 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.
   5. E. 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.
      1. Ask the client what their preferences are for eligible day approval based on the number of hours calculated, plus travel time.
      2. Inform the client that they should begin documenting their hours at work.

4. Cash Paid Procedures and Required Documentation

   1. 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.
      5. the employee's schedule.
   2. A client may not complete their own verification letters.
   3. If the client is eligible, approve the case for twelve (12) months.
   4. If a person is working under contract, obtain a copy of the contract for services. If eligible, approve the case for twelve (12) months.

5. Establishing Eligible Care

   1. 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. 
   2. This policy is meant only as a method to calculate the number of approvable hours for cases that provide no documentation of activity hours.
   3. 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 the current State minimum wage.
      1. Parent reports working 8:30 a.m. - 5:00 p.m., 40 hours, Monday through Friday, compared to minimum wage calculation that shows 13 hours per week.
      2. Divide the 13 average weekly hours by 5 days (the number of days of care requested per week). The calculation results in 2.6 hours of work per day, plus any travel time completed (if applicable).
      3. Approve the eligible days according to reported work schedule for Part-Day if fewer than 5 hours per day or Full-Day 5 through 12 hours per day.