Child Care WAGE$® IOWA is Moving Statewide

Posted by ICCRR in News on 3/31/2021

Child Care WAGE$® IOWA

March 31, 2021

Dear Child Care Providers,

Child Care WAGE$® IOWA is moving statewide!

As you may know, Iowa received federal stimulus funds to support the stability of child care as we continue to navigate the COVID-19 pandemic. The Department of Human Services is excited to share that we are using some of those funds to support the Child Care WAGE$ program in moving statewide.

WAGE$ is a salary supplement program offered by the Iowa Association for the Education of Young Children (Iowa AEYC). WAGE$ offers supplements to the early care and education workforce, based on the individual’s level of formal education and commitment to their program. WAGE$ was created to help increase retention of staff, compensations of providers and education of the workforce.

Below are 5 of our most commonly asked questions:

When is the money coming?

Funds will not be available until after July 1, 2021. This means we cannot send checks out until sometime after that. However, WAGE$ applications are being accepted at this time.

What do you mean by official transcripts?

Official transcripts are the transcripts that come directly from the college. We cannot accept scanned versions or copies of transcripts.
Transcripts should be requested from the college to be sent to WAGE$. They can be sent electronically to wages@iowaaeyc.org or Iowa AEYC, Attn: WAGE$, 5525 Meredith Drive, Suite F, Des Moines, IA 50310.

What are the income caps?

Teachers, assistant directors, and home providers have an income cap of $20 per hour or less. Directors have an income cap of $25 per hour or less. Center staff need to submit a pay stub showing their hourly rate of pay and home providers will need to submit their most recent Schedule C.

How many hours must I work to be eligible?

Applicants must be working with children ages birth to five for at least 20 hours/week. We cannot pay for time working with school-age children. Those who work less than 35 hours per week will receive a prorated annual supplement.

Do I have to pay taxes on my WAGE$ supplements?

Yes, because the salary supplement is income. Participants will receive an IRS-1099 form at the beginning of each year if they received $600 or more from Iowa AEYC during the previous calendar year. Participants are responsible for reporting and paying personal income taxes due.

To answer your remaining WAGE$ questions, please check out one of the upcoming WAGE$ training opportunities. Attendees will receive one hour of DHS training credit. Use the hyperlinks below to register or go to i-PoWeR Professional Workforce Registry and search for: Statewide WAGE$ 101

More information about Child Care WAGE$ Iowa can be found on the Iowa AEYC website.

Thank You,
Wendy Hoogeveen
Child Care Program Manager
Division of Adult, Children and Family Services
Department of Human Services