Kindercare online payments: Family Connection Login

Is Cash Really King? The Role Of Cash In Childcare And Daycare | by Pay Theory

6 min read

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Dec 15, 2021

Child care costs are a regular sticking point for new families. Based on recent studies, the majority of families spent over $10,000 on child care in 2020, and nearly all spend more than 10% of their household income on childcare. That can be higher than in-state college tuition!

The actual cost of childcare depends on a lot of factors, including where you live, how old your child is, and what kind of care you need. However, one thing stays the same: those ever-increasing bills need to be paid.

In an ever-digitizing world, it may surprise you to hear that you can still pay for childcare costs with cash. The question is: is it worth it?

Low-income to middle-class families have a few different ways to find the funds for childcare. Some may even combine a few (or all) or the payment options, depending on their situation.

Some companies allow their employees to allow some of their paycheck (pre-tax) towards FSA accounts for childcare. While the actual paycheck that hits their bank account is smaller, this can help families save money come tax time.

However, many have a “use it or lose it” policy. Some employees are losing their FSA money set aside from their paychecks by having it stuck in a dependency-care flexible spending account that they couldn’t employ during the COVID-19 pandemic.

Whether you have a live-in caregiver or daycare facility, bank transfers and eChecks are becoming more accessible as a “cash online” type of payment. This option allows for funds to be transferred from anywhere with just the account and routing information. While the process is convenient, there may be some processing time to consider, which must be accounted for in order to avoid late fees or bounced payments.

Some childcare programs allow parents to pay for their services with credit cards. While this payment system is certainly convenient, it can come with some serious drawbacks as well.

For one, your one-on-one caregivers may not be able to accept credit cards. Some of your daycare facilities may not accept them either, either because they don’t have the means to do so, or the fees outweigh the benefits. Processing fees can be up to 3% per transaction, which adds up quickly with the skyrocketing cost of childcare.

That 3% may not seem like much at first, but over time, those fees can blow up your child care budget. The average annual cost of childcare is around $10,000; with a 3% processing fee, that’s $300 a year that can eat into a family’s already tight budget. What could you do with an extra $300 a year?

If you pay off your credit cards each month, then the potential rewards and cash back (or even those airline miles!) may be worth the processing fees for you. However, not paying your credit card off each month can quickly make this a bad decision for childcare costs, as this will lead to carrying debt from month to month.

Image by Frantisek Krejci from Pixabay

For some parents, paying with cash or a check makes the most sense. It’s a fairly straightforward method of payment that can be used for any caregiver, whether it be your teenage babysitter or your daycare facility.

Paying cash seems easy at first, and it’s commonly used for paying one-on-one caregivers or in-house daycares. Some families even hire an au pair as the least expensive option and pay in cash. Others may seek out low-cost daycare options (like church-subsidized facilities) and pay in cash there.

The high costs of childcare make cash payments a difficult choice. Cash is still accepted in most situations, but as our society becomes more and more digitized, the benefits of cash payments don’t always outweigh the drawbacks.

There are some pros to paying for childcare in cash. Some of these main benefits include:

• The caregiver gets the funds immediately, so neither party needs to worry about the payment bouncing or incurring late fees.
• There are no processing fees (which can quickly add up to hundreds of extra dollars on top of the cost of childcare itself).
• You can use cash for smaller-scale child care situations, such as babysitters and nannies.

Image by Michal Jarmoluk from Pixabay

If you choose to use cash to pay for childcare, there are certainly benefits to doing so. However, cash also comes with its own disadvantages. Some of these limitations include:

• Unlike card payments, there is no dispute protection for your cash payments. Once the cash leaves your hands, it becomes much harder — if not impossible — to reverse your payment.
• If your cash is lost or stolen, that money is usually gone forever.
• Paying in cash is more time-consuming. You need to withdraw cash from the bank or ATM, give the cash to your caregiver in person, make change (if the amount is not exact), and then wait for the caregiver to deposit that money into their own account.
• Storing and transporting cash payments requires additional time and resources (such as a till). At best, this process is annoying. At worst, it can be dangerous, as practically anything can happen during transport to lose that cash (accidentally, or by robbery).
• There is no automatic paper trail. When making cash payments, you need to make and store receipts on your own. This lack of records makes it more likely that you will be audited by the IRS (especially if you claim a tax credit).

You may also want to save up an emergency fund in cash that can be used towards childcare in hard times, like if one parent loses their job, or another large expense leaves your family low on other funds.

Cash payments require meticulous bookkeeping in order to better prepare you for tax season. You can claim deductions or even tax credits for your paid-in-cash childcare costs, but you need to do it strategically.

First, you need to have detailed receipts for each transaction, even if you have to make them yourself. Have everything in writing, including who the payment is to, how much, and when it was paid.

There are specific parameters that need to be met in order for you to use these cash payments as childcare tax decisions. For one, you can’t pay your spouse or your older children and then use those payments for tax purposes.

You also need to be able to prove that each payment was used solely for childcare. Mileage, food costs, and other expenses aren’t eligible for these kinds of deductions. (However, if you include the costs of takeout in your babysitter’s overall rate, that can still apply).

As a final note, you will also need the SSN of your caregiver to include on your tax return.

There is still a place for cash payments in the field of childcare, but today, it’s a matter of when. When considering using cash as your primary method of payment, make sure to account for the extra time, effort, and drawbacks that come with cash payments, especially when it comes to childcare.

And as always, keep an eye out for new resources that give you a central payment system for all of your childcare needs. Payment apps and systems make it easier every day to pay for your childcare faster and more efficiently. Childcare costs are hard enough; actually paying them doesn’t need to be a chore, too.

Child care assistance | Hennepin County

The child care assistance program helps families pay for child care so parents can work, look for a job or attend school. The program is available for families with children younger than 13 and with children with special needs who are younger than 15.

We’re changing the way we serve you by offering services in a way that is more convenient for you. Apply for economic benefits whenever, wherever. 

We’re also adding technology tools in the community for people who aren’t able to access online tools using their own personal devices. Using a digital access point, residents can:

• Access and complete online applications
• Scan and print Human Services documents
• Use a phone to contact a representative
• Register to vote

• 
  Find a digital access point




• 
  Think Small




• 
  Parent Aware ratings




• 
  Child care assistance overview

• 
  Family co-payment schedules – October 2022 (PDF)

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Apply for child care assistance

Start by calling Hennepin County at 612-348-5937.

Based on your answers to a few questions, we will:

• Mail a child care application packet, or
• Add your name to a waiting list (if funds are not available), or
• Tell you why you are not eligible at this time

If you receive an application, fill out and return the required forms and other documents. Send proof documenting things such as address, identity, income, work schedule and school schedule.

Applications are processed within 30 days. Your child care provider must be registered with Hennepin County. It takes 4–6 weeks to become registered.

Information for parents

Choose a provider

Select a child care provider that is best for your children. Your provider can be:

• Licensed child care centers (licensed through the state)
• Licensed family child care (licensed through Hennepin County)
• Licensed exempt child care (such as school programs)
• Legally unlicensed family child care (provider must be 18 or older and must pass a background check)

All providers must be registered with Hennepin County to participate in the program. Unlicensed providers must pass background checks.

It is a good idea to interview the child care provider and visit the program before using the service.

Care for school-age children

Studies show that children in quality school-age programs are more likely to turn in homework, attend school, and have improved school behavior. Children are also less likely to participate in risky behavior such as smoking, drinking, or using drugs. Research tells us school-age programs also:

• Help kids learn social skills
• Create changes to get involved in communities
• Connect families to other services

Questions and answers

How often do I have to submit paperwork?

After you are approved for benefits, a renewal form must be completed every six months along with updated proof of income and activity.

What kinds of changes should I report?

Report any changes in income, jobs (starting or ending), work hours, school schedules, marital status, family size, and address, within 10 days. These changes can affect your eligibility, your approved care, or the co-pay amount.

What is an overpayment?

This is child care money paid out in excess of what a person was eligible to receive. It must be paid back. As long as you are receiving child care benefits, your co-pay will be increased until the debt is paid in full.

How do I change child care providers?

Contact a child care assistance worker right away. The current provider must be given a 15-day written notice to end care. The new provider must be registered in Hennepin County.

Can a child use multiple providers?

More than one provider can be used per child. A child care worker will figure out how much care a child can have with each provider. The total amount of care cannot exceed 120 hours in a two-week period for each child.

How much will I have to pay for child care?

The size of your co-pay will depend on your family size and other factors. You can look up your co-pay on the Minnesota Department of Human Services website. You may have additional costs.

Family co-payment schedules – October 2021 (PDF)

Hennepin County pays child care providers only up to maximum rates. If providers charge more than maximum rates, the family must pay the difference. Providers can also charge for:

• Late fees
• Optional activity fees
• Transportation fees
• Hours not authorized for payment by Hennepin County

Be sure you understand the child care provider’s payment policies.

Online resources

Child Care Aware – Help finding a child care provider and child care provider resources. Call 651-290-9704.

Think Small – Help with finding a child care provider and child care provider resources. Call 651-641-0332.

Parent Aware – Help finding child care and early learning providers. Call toll-free 1-888-291-9811.

DHS licensing look-up – Help finding licensed child care providers, complaints, and compliance reports.

Minnesota Department of Human Services – Child Care Assistance Program

Greater Minneapolis Crisis Nursery

Domestic Abuse Service Center

Information for child care providers

Registering as a child care provider

Providers cannot be reimbursed for child care services until both the provider and family have been authorized to receive child care assistance payments.

The authorization for providers involves registering with the county or tribe that serves the family and meeting the necessary requirements for receiving payment from the Child Care Assistance Program (CCAP). In Hennepin County, the registration process is initiated when an eligible family notifies the CCAP of their chosen provider. Paperwork is then sent out to the chosen provider to complete. Once the paperwork is returned, Hennepin County reviews it and notifies the provider if they have been approved or additional information is needed.

Billing and receiving payments

After the family is authorized to receive assistance and the provider is registered, the CCAP agency will send the provider a service authorization listing the number of hours of care approved for each child, the maximum rates for each child and the family’s co-payment amount. Providers must submit bills within 60 days of the last date of care or the date the billing form was sent, whichever is later.

For more information, see the Department of Human Services’ Child Care Provider Guide.

For billing or payment questions, contact Accounts Payable at 612-348-3445 or [email protected]. If you need replacement billing forms for a specific CCAP case, contact the assigned child care worker.

Re-authorization of providers

• Providers must complete the provider registration process and be re-authorized every two years.
• Legal non-licensed providers must be re-authorized when another person older than the age of 13 joins the household, a current household member turns 13 or there is reason to believe a household member may prevent authorization. In some cases, a legal non-licensed provider might need to be re-authorized when a person older than the age of 10 joins the household or a current member of the household turns 10.

Payment rates for providers

Maximum rates depend on the type of child care setting and are determined by the State. Hennepin County rates can be found on the Department of Human Services website.

• Provider standard maximum rates
• Provider 15 percent quality differential maximum rates
• Provider 20 percent quality differential maximum rates

Unmet co-pays

If a parent does not keep current with co-pays, contact the child care worker. Benefits will end until the co-pay is paid or the provider agrees to another payment arrangement.

Reporting changes

Providers must notify the agency immediately of any changes to information previously submitted on their registration form (Provider Acknowledgement), including address, phone number, rates, charges for absences and holidays, notice days required before a child ends care and required registration fees.

Providers can report changes by downloading and mailing in a paper form to the address below or submitting an electronic form.

Resources

• Think Small
• Family child care licensing in Hennepin County
• Child Care Aware
• Parent Aware

Child care registration contact information

Phone: 612-348-6850

Fax: 612-348-6499

Email: hs. [email protected]

Mail:
Hennepin County – Human Services
Child Care Registration – MC718
300 S. 6th St.
Mpls, MN 55487-0718

Child care complaints or suspected fraud

Complaints

Report complaints to your child care worker and call the appropriate complaint line.

• Licensed center: 651-296-3971
• Licensed and unlicensed family provider: 612-348-3883
• Child protection issue: 612-348-3552

Report potential fraud

Make a report of suspected fraud online with the Minnesota Department of Human Services Office of Inspector General, or call a fraud hot line, below.

• Minnesota fraud hot line: 651-431-3968
• Hennepin County fraud hot line: 612-348-4952

Statutory information

2022-2023 Hennepin County Child Care Plan (PDF)

2022-2023 Hennepin County Child Care Plan Extension Page (DOCX)

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How to pay for a kindergarten through Sberbank Online: using details from a mobile phone

If you need to pay for a kindergarten, they offer several options, incl. through remote services. If you have a Sberbank card, you should know how to pay for kindergarten through Sberbank Online. This will help to reduce the time for the operation and deposit money in a timely manner.

Sberbank Online provides plastic card holders with an undeniable advantage – the ability to pay for services remotely without leaving home, if you download the Sberbank Online application to your mobile device and assign an entry code. So, you can pay for the kindergarten from anywhere, only if you have access to the Internet.

Registration in Sberbank Online occurs using an identifier issued by an employee of Sberbank upon receipt of plastic. It can also be requested later by phone through the Contact Center. You can also register yourself, for which you will need to indicate your card number and the phone connected to it on the Sberbank Online website by clicking on “Registration”.

Contents:

Pay a receipt for kindergarten in Sberbank Online

There are several ways to pay for kindergarten through Sberbank Online. The choice of method depends on several parameters:

• Is there a kindergarten in the Sberbank database;
• Whether the payment will be made according to details or personal account.

If the kindergarten where you want to transfer the payment is not on the list, you will have to use the search line

Sberbank will charge a commission for the transaction without fail. It is commission 1%, as for most online transfers in favor of legal entities. This is a small price to pay for the convenience and comfort when paying for kindergarten services online.

Personal account

Almost all public kindergartens are included in the Sberbank database. This means that he already has all the details necessary for making a transfer, and there is no need to fill them out separately. Most private (commercial) institutions also prefer to cooperate with Sberbank, as with the largest bank, whose cards are owned by more than half of the country’s population.

You can pay for such a child care institution according to the instructions:

In the “Payments and transfers” section, go down to the bottom – “Payment for purchases and services”

In the “Education” subsection, select “Kindergartens and preschool institutions”. In the search menu that appears, you should find your garden. Their list is provided on the page, taking into account the selected region.

The kindergarten can be found through the “Search”, where it is allowed to drive in any known parameter: name, TIN, current account The next step is to fill out the payment order, according to the data from the receipt issued in kindergarten

The payment card immediately displays known parameters: recipient details and name of the garden. It remains to fill in the missing columns:

• Designate your card for debiting. If there are several, a list of all will be offered for selection, indicating the current balance.
• Institution account;
• Payment period;
• Citizenship;
• Document: RF passport;
• Series and passport number;
• Personal account number;
• Amount.

UIN is set to 0. This parameter does not need to be changed.

Next comes the validation of the data. If filled out correctly – confirmation code, which is sent in the message.

Depending on the region and the requirements of a particular institution, the points may differ slightly.

By details

If the kindergarten is not in the list of Sberbank institutions, you should use the second method. To do this, you must have full details of the kindergarten. All of them are contained on the receipt, or they can be clarified in the accounting department of the preschool institution.

Having visited the same section of Sberbank Online, you should go to “Organization Transfer” and fill in the fields:

• Select a card product for sending money.
• Write down: TIN, account number and BIC of the beneficiary’s bank. If all the information is correct, further lines will open.
• Enter: OKTMO, name of the garden, CBC and amount.
• Be sure to write down your last name in the note so that the recipient has no doubts about the sender of the money.

Start filling in the fields of an electronic payment order in Sberbank Online, the system will help you complete the payment with prompts

This is followed by the standard confirmation step.

Creating an auto payment

In order not to go through the same procedure every time, you can save the template after making the first payment. The next time you need to open it, edit if necessary and confirm.

All created templates will always be available in Sberbank Online.

You can also pay for kindergarten using auto payment. This function provides for sending money automatically on the date specified by the client and in the specified amount. The procedure provides for a reminder on the eve of the date of dispatch of the need to pay for the specified details. If the user does not send a cancellation code to Sberbank, then the operation is performed.

An auto payment is created in the “My Auto Payments” section of Sberbank Online. In the template, you need to specify the details of the recipient, the amount and frequency of the transfer.

Via the mobile application

The interface is somewhat different in the mobile application, but in general, you can pay for a receipt in the Sberbank Online application using a barcode, following the instructions above.

To search for a kindergarten, you need to go to “Other” in the “Payments and transfers” section0002 To do this, after the recipient is defined, click on Scan barcode. After that, you need to bring the receipt to the camera of the mobile. In this case, all data will automatically fall into the payment order. The user only needs to verify them, assign a card for debiting, enter the amount and send it to Sberbank for execution.

Receipt is recommended to be kept. It can also be sent by mail so that you can print it later.

There is no payment without commission.