Child Care Start-Up Costs
This section is an excerpt from the Ontario Works Act, 1997 prescribed by the Province of Ontario.
49. (1) The following rules apply with respect to the treatment of earnings:
1. The sum of the total amount of gross monthly income from employment, the amounts paid under a training program and net monthly income as determined by the administrator from an interest in or operation of a business shall be reduced by,
iv. child care expenses actually incurred, and not otherwise reimbursed or subject to reimbursement up to the maximum amounts provided in paragraph 2, for each dependent child and for each child on whose behalf temporary care assistance is provided pursuant to section 57 if,
A. A the child care expenses are necessary to permit a recipient or a spouse included in the benefit unit or a dependent adult to be employed or to participate in an employment assistance activity,
B. the child care expenses are not paid to a member of the benefit unit, and
C. C the recipient has not received reimbursement for the child care expenses through the Child Care Tax Credit under subsection 8 (15.2) of the Income Tax Act.
1.1. For the purposes of subparagraph 1 iv, payments made under section 8.5 of the Income Tax Act shall not be considered reimbursement for child care expenses actually incurred.
2. The maximum amount of child care expenses permitted for each child,
i. is the actual amount paid, if those expenses are paid to a person licensed under the Day Nurseries Act, and
ii. otherwise is $600.
55. (1) the following benefits shall be paid with respect to each of the members of a recipient’s benefit unit if the administrator is satisfied that he or she meets the criteria for them and income assistance is being paid on his or her behalf:
7. An amount determined by the administrator, up to a maximum in any 12-month period of the amount that the person would be entitled to as a deduction for child care under section 49 if,
i.a recipient, a spouse included in the benefit unit, a dependent adult or a dependent child,
A.begins, changes or maintains employment, or
B.begins, changes or maintains an employment assistance activity under the Act, and
ii. in the opinion of the administrator, the person is required to pay in advance for child care that is reasonably necessary to permit the person to begin, change or maintain his or her employment or activity.
The intent of this policy is to further enhance employment opportunities with an advance child care payment where necessary. This is a mandatory item of Ontario Works (OW). This benefit may be provided to an applicant, a spouse included in the benefit unit, a dependent adult or a dependent child with a dependent child. Applicants or participants must be required to pay child care costs in advance and have a confirmed job or training program, are changing jobs or require the benefit in order to maintain their participation in employment or employment activities.
Payment of up to one month’s expenses can be made to the allowable ceiling for unlicensed care and up to actual cost in licensed care. In addition, Child Care Start Up Costs may be considered where a child is accessing a subsidized space via Children’s Services and advance registration fees are required. The full amount of a Child Care Start Up Cost may be paid in any 12 month period. For example, a recipient employed part-time with child care expenses moves to full-time employment requiring additional child care. If an advance payment is required, the recipient may be eligible for the difference between the amount paid the first time and the amount now required up to the maximum.
Read a summary of the Child Care Start-Up Benefit and how to apply.