Child Care Cost Reimbursement | Department of Human Resources

CHILD CARE COST REIMBURSEMENT GUIDELINES

What is This Program?

The program offers financial assistance to Vermont State employees for their work-related child care expenses. The funds are made available through labor/management agreements with the State of Vermont. This initiative is the result of employee surveys and feedback on childcare and childcare assistance.

What Kind of Child Care is Eligible for Reimbursement?

Reimbursement will be available for State employees who spent at least $300 for regular, on-going, work related childcare for children aged 13 or younger (as of December 31, 2024).

Child care must be provided by a registered or licensed Child Care Provider or an Approved Relative Childcare (ARCC) Provider. You may call the Child Development Division at 1-800-649-2642 to confirm the status of your child care provider.

The cost of child care provided by individuals (including relatives) who do not fall into one of the approved provider categories above cannot be reimbursed.

Who is Eligible?

Full-time State Employees employed between January 1, 2024 and December 31, 2024

Full-time State Employees employed for more than six (6) months, but less than twelve (12) months between January 1, 2024 and December 31, 2024 (eligible on a prorated basis)

Part-time State Employees who have completed one thousand forty (1,040) hours of regularly scheduled work between January 1, 2024 and December 31, 2024 (eligible on a prorated basis)

AND

Whose 2024 Federal taxable income (after deductions) does not exceed $85,000

All Permanent Employees in the Executive Branch of State Government are eligible

Applicants must be employed as of April 15, 2025.

Note: Above categories include Limited-Service Employees, but do not include Temporary Employees or Contract Workers.

How Does the Program Work?

Interested and eligible employees must mail an Application to the VT/VSEA Child & Elder Care Committee. The Committee meets monthly to consider all applications submitted. Funds will be allocated within eligible Federal taxable income groups with income under $85,000 (after deductions).

Are There Tax Implications?

In accordance with Payroll guidelines, the Child Care Cost Reimbursement is no longer a non-taxable grant. Consequently, your reimbursement will be included in your paycheck and taxes will be deducted at your payroll tax level. If you have questions about this, please contact the Payroll Division.

By law, IRS guidelines and eligibility must 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 childcare 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 Employee Benefits at 1 800-828-6700, option 1, then option 3.

Where is the Application?

The application form is in the Forms & Documents section of the SOV Website. An icon has been provided at the bottom of these Guidelines. You could also call the Administrator at (800) 287-8322 to request an application.

When Should I Apply?

Applications, along with documentation, should be mailed via the US Postal Service, postmarked by April 15, 2025 or submitted electronically to VTChildelder@vsea.org by 11:59 on April 15,2025. Limit ONE application per household. Applicants who filed an Income Tax extension should send a copy of their extension along with their reimbursement application by April 15, 2025 Applications accompanied by a tax filing extension will be held active until the end of the Extension deadline. Applications with extensions received after April 15, 2025 will be considered late and ineligible.

When Can I Expect a Response?

All applicants will receive acknowledgement of their Application. If eligible, reimbursements will be included in a payroll check prior to the end of June in the application year. Taxes will be withheld at your payroll tax level.

How Much Can I Expect to Get Back?

Reimbursements will be affected by the number of applicants. Applications will be sorted by household income. The maximum reimbursement per household, per year, could be as much as $1,600, before taxes.

What is the Mailing Address?

The application, and required documentation, must be mailed via the US Postal Service, postmarked by April 15, 2025 to the address shown or submitted electronically to VTChildelder@vsea.org by 12:59 on April 15,2025. Any other type of submission will not be accepted.

VT/VSEA Child & Elder Care Committee

PO Box 105

Huntington, VT 05462

Be sure to include any necessary documentation (see page 2 of the application) and a copy of your Income Tax extension, if applicable.

Members of the VT/VSEA Child & Elder Care Committee:

Dave Clark Tina Bohl, Committee Chair

Administrator VTRANS

vtchildelder@vsea.org tina.bohl.@vermont.gov

(800) 287-8322

Jennifer Book Shannon Reaves

Human Resources Department of Human Resources

jennifer.book@vermont.gov Shannon.Reaves@vermont.gov