I accept families on subsidy (none at the moment however) and yes it can be tricky. The best way to go is to have them pay the weekly rate in advance AND a deposit of two-weeks if you do not have the acceptance letter in your hand beforehand (which you rarely do). If they can't come up with this, I don't accept them. Some parent's are bad with their paperwork and keeping their appintments and if they don't keep them up they can lose their benefits so this is just a safeguard.

If they pay in advance and then get approved for subsidy in the entire amount I deposit the subsidy check, wait for it to clear and then write them a check in return for reimbursement. If they get approved but not for the whole amount and they end up having to pay a co-payment each month then I do not give a refund, I give a credit (I also state this in my contract). I give them a receipt for what they pay of course and when their subsidy check comes in I give another receipt with the credit and the co-payments come out of this until their credit is all done. I don't see the point of giving the money back if they are just going to turn around and give it to me later. It also gives them a chance to not have to worry about paying a co-payment for quite a few months and get an idea as to how much they have to pay each month. At the end of each month when I get the letter from subsidy as to how much the family owes I write a new receipt with their new new credit balance and then fill out my worksheet and sign the paperwork that says that I've been paid and return it to the subsidy office.

Just in case you get a family that doesn't get approved for the full amount, make sure that your contract states that the parent(s) is/are responsible for paying whatever is not covered and that these fee's need to be paid immediately (you should get a letter at the same time that she does) or their child cannot come to daycare and payment for those days missed will still be owed. Usually the state does not cover unexcused absent days so this will also come out of their pocket so it's in their best interest to pay their share on time.

Reply