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$. They can be sent electronically to or Iowa AEYC, Attn: WAGE$, 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


Tags: wage$ , wages , iowa aeyc

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