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Reimbursement Rates CACFP
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Reimbursement Rates

 

You will be reimbursed each month for meals and snacks which meet USDA requirements and are served to the children enrolled in your care. Most of the time, providers are already serving nutritious foods and need to make minimal changes in order for their meals and snacks to meet USDA food program guidelines. 

There is a two-tier reimbursement rate system for family child care providers participating in the Child & Adult Care Food Program (CACFP). You will receive either Tier I or Tier II rates for meals or snacks depending on the location of your child care home or your householdsize and income or the income of the families in your child care.

 

2014/2015 CACFP Rate Chart 

RATE CHART

Tier I

Tier II

Breakfast

$1.31

$0.48

Lunch/Supper

$2.47

$1.49

Snack

$0.73

$0.20

Total

$4.51

$2.17

 

CACFP from a Business Income Perspective

Tier I Rate Example (6 children)

Tier II Rate Example (6 children)

4 weeks per month=$541.20

5 days per week=$135.30

6 children x $4.39 =$27.06

4 weeks per month=$260.40

5 days per week =$65.01

6 children x $2.17=$13.02

 

 

Would you say no to $526.80 a month additional income?  Even if you were Tier II, would you say not to $253.20 per month?  According to Tom Copeland, Redleaf National Institute, the average amount of time per month for Food Program record keeping is 1-2 hours.  Even at Tier II rates, you would earn over $100.00 per hour for record keeping that you would be required to do anyway.  Rule 2 standards require providers to keep records of menus and foods served to children to document that nutritional guidelines have been met.

  
Sometimes providers are concerned that the Child and Adult Care Food Program reimbursement raises their income and the tax liability or they are concerned about losing the cost of food served as a tax deduction.  The Food Program does increase your taxable income, and the reimbursement also decreases the amount you can deduct as food expense on your taxes.  However, providers only pay a percentage of income as taxes.  This means that you lose only a part of this additional income to taxes.  A person does not turn down his or her paycheck because a percentage of it goes to pay taxes.  This is the same principle.  You may lose a portion of this income as a tax liability, but providers keep the majority of it as additional income for their family.

 


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2/14/2015
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