Program offers limited taxable benefit to eligible employees to help pay for qualifying, work-related child care for children under 6 years of age.
Child care is one of the biggest expenses facing American families. In Maryland, the average cost of toddler care is $855 a month. The cost increases to $1,200 a month for infant care. That amounts to over $10,000 a year — more than the tuition of some community colleges.
The University of Maryland, Baltimore (UMB) recognizes that the cost of child care is a tremendous burden for most working parents. That’s why it is launching the UMB Child Care Grant, a pilot program for eligible employees that offers a limited taxable benefit to help pay for qualifying, work-related child care for children under 6 years of age.
Patti Hoffmann, MA, MSL, compensation and benefits director, said the need-based grant is the result of the input of numerous campus voices including the President’s Council for Women and the Staff and Faculty senates, along with a firm commitment from UMB President Bruce E. Jarrell, MD, FACS, and Senior Vice President and Chief Business Officer and Finance Officer Dawn M. Rhodes, DBA, MBA, to provide funding.
“We all worked together to come up with a benefit that we hope will address some of the needs of UMB’s working parents,” Hoffmann said.
Who Qualifies?
The UMB Child Care Grant program, which begins in Fiscal Year 2022, is open to faculty, staff, and postdoctoral fellows on payroll whose household income is less than $90,000 per year. Income is verified by submission of your most recent IRS 1040 form.
Qualifying dependents include all children who are under age 6 or still in preschool. Child care providers may be licensed or unlicensed but must be willing to provide written monthly confirmation that they have received payment for child care from the employee.
How Much Is the Grant?
The maximum amount of the annual grant ranges from $1,000 to $5,000 depending on the reported household income of the participant. For the inaugural fiscal year, the grant will be paid over seven months instead of 12 due to the December start date. Funds will be spaced over 12 months in Fiscal Year 2023.
How Do I Apply?
The enrollment period began Oct. 25 and ends Nov. 17, 2021. Interested qualifying parents should apply online here.
Emily Winkler, MS, benefits manager, and a team of Human Resources employees are eager to assist with the application process if needed. “This is a benefit that the campus has wanted for a long time, and we’re excited to work with our employees on this,” she says. Those in need of assistance can email ChildCareGrant@umaryland.edu.
Accepted applicants will receive a letter around the first week of December detailing the amount of funding awarded as well as how to submit monthly receipts and accompanying documentation to Human Resources. Payments are set to begin Dec. 23, 2021.
Is the Grant Taxable?
Winkler wants applicants to know the grant is considered taxable income and that taxes will be withheld from the paycheck in which the grant payment is received. “It’s what we have to do legally,” she says. “But at the end of the day, it’s a wonderful benefit to know you’re getting money toward your daycare expenses.”