Program Benefits and Reimbursement
Milestones has been promoting quality child care and nutrition services since 1977.
Starting Family Childcare: One of our dedicated staff will meet with you to review program guidelines, help you complete start up paperwork, provide training for successful monthly meal planning, attendance tracking and guide you through the menu submission process. We are here for you every step of the way, Milestones is committed to make your Food Program experience rewarding.
Enrolled Providers: Receive ongoing support to assist with your everyday child care business. You will receive monthly newsletters, each issue contains; food program regulation updates, nutrition information, upcoming events, great recipes and other business information such as organizing, cooking and health and safety tips. You will also receive at least 3 in person visits each year. During visits you will receive one on one training, child activities, parent information, program updates and other great resources. Milestones knowledgeable and friendly staff are here to help you be successful.
Reimbursement
Participating providers receive reimbursement for a portion of the nutritious meals and snacks served to enrolled children.
Reimbursement rates are determined by USDA and are the same for each sponsoring organization across the state. These rates are designed on a fee schedule which helps assure that providers and children with the greatest need, due to income limitations, receive the greatest financial assistance. To accomplish this, the program’s reimbursement system is divided into two categories, Tier I and Tier II. Everyone qualifies for Tier II rates.
Tier I Reimbursement Rate Criteria
The family child care home must be located in a geographical low-income area. Low income areas are determined by census data or elementary school boundaries in which at least half of the enrolled children receive free or reduced price meals. If the family child care home is not located in a low-income geographical area, the provider may complete a household income statement. If the provider meets the income guidelines, the provider may claim Tier I rates. If the Tier I criteria does not apply, the provider may still qualify to receive Tier I reimbursement rates for the families who qualify as low income.
TIER II REIMBURSEMENT RATE CRITERIA:
If the Tier I criteria does not apply, the provider may still qualify to receive Tier I reimbursement rates for the families who qualify by completing a family household income data sheet.
Income Guidelines:
Current Reimbursement Rates
The United States Department of Agriculture (USDA) determines reimbursement rates for family child care providers. These rates are effective July 1, through June 30, of each year. Changes are made to the reimbursement rates by USDA annually. All Food Programs reimburse at the same rate.
|
Current rates effective from 7/1/23 through 6/30/24 |
Tier I |
Tier II |
|
Breakfast |
$1.65 |
$0.59 |
|
Lunch/Supper |
$3.12 |
$1.88 |
|
Snacks |
$0.93 |
$0.25 |
Providers may claim two meals and one snack or two snacks and one meal per child per day.
DO I PAY TAXES ON FOOD PROGRAM INCOME?
Yes, however, even after you've paid taxes on the food program income you'll have money left over. For every $1,000 you get from the Food Program you will keep about $600 - $700 after taxes. Therefore, you are always better off financially by participating in the Food Program. Providers who join the Food Program can continue to deduct their food expenses in exactly the same way as before. The only difference between a provider not on the Food Program and one who is on the program is that one on the Food Program has more money in their pocket at the end of the year.
WHAT KIND OF EXTRA PAPERWORK IS INVOLVED?
On average providers spend less than three hours a week completing food program paperwork. Depending on what reimbursement tier rate you are receiving, you could potentially earn from $15 to $25 per hour just doing the paperwork many counties require providers to track. Join a food program and get paid to do a little paperwork and receive nutrition information for the children in your care. Being on the food program is also a great way to market your business to families looking for childcare.