National Park System
Subsidy Program
Providing Child Care subsidies for National Park System employees
Employees
NPS employees can apply to take advantage of the child care subsidy program from a qualified provider. If your current child care provider is not a member of the NPS Subsidy program, you can request they join the program. Employees are subject to eligibility requirements.
Providers
Child care providers must apply to be eligible to process NPS subsidies. There is non cost to apply or join, and upon qualification you will receive member benefits.
NPS Employee Eligibility
Eligibility Basics
To be eligible for a childcare subsidy, an employee must be a permanent employee of the National Park Service and meet the following criteria, as outlined in more detail in the Plan:
Have at least one child who is:
- age 12 or younger, or under age 18 and physically or mentally disabled as determined by a physician or by a licensed or certified psychologist; and
- a dependent of the employee as described under 26 U.S.C. 152 (a); and
- a member of the employee’s household; and
- have a Family Adjusted Gross Income of $ 90,000 or less; and
- use a childcare provider that is licensed or regulated in the state or location in which the provider operates and who is not a child or dependent of the employee.
Child Care Subsidy Schedule
| Effective as of the date stated below, the following Benefit schedule will be in effect under Section 4.2 of the Plan: If Eligible Employee’s Total Family Income1 is… | Then the Plan will pay this percentage of the Participant’s Eligible Child Care Expenses2 | Monthly Cap on Payments for Childcare costs, per family | Annual Cap on Payments for Childcare costs per family |
|---|---|---|---|
| Over $90,000 | 0% | $0 | $0 |
| $70,000 to $90,000 | 35% | $300 | $3,600 |
| $50,000 to $69,999 | 55% | $420 | $5,000 |
| $49,999 or less | 85% | $625 | $7,500 |
Family adjusted gross income (Total Family Income) refers to the amount reported as Adjusted Gross Income on IRS Tax Form 1040 or 1040A. For individuals who are married, filing separately, it is the sum of both spouses’ Adjusted Gross Income on IRS Tax Form 1040 or 1040A. A subsidy under the Plan will be reduced by the amount of other state or local childcare subsidies received by the employee.
Example: An employee has a Family Adjusted Gross Income (Total Family Income) of $48,000 and actual childcare expenses of $6,000 per year. According to the subsidy schedule above, NPS will pay 85% of actual costs after any other subsidy is deducted (ie. State, County, other). The employee is expected to pay a 15% of the actual costs. In this example the employee is expected to pay is $900 annually. The Employee is eligible for a subsidy of up to $5,100 annually, with a $625 monthly cap.
Tax Consequences to Employees
This NPS CCSP meets the criteria of a Dependent Care Assistance Program under 26 U.S.C. 129. This allows all or part of a subsidy received by an employee to be excluded from income for income tax purposes. The amount of subsidy received, and the amount excluded from taxable income will be recorded in the appropriate boxes on the employee’s W-2.