Appendix B - Daycare Allowance – Pro-Rating Monthly Employee Shares and Ceilings – A Step by Step Guide

Where employees use less than the total number of half-day periods within the given month, both the employee share and monthly daycare ceiling will be prorated based on the number of periods the child attends, in a given month.

Formula for Calculating Allowances

1. Determine total number of periods in the given month.
2. Determine the number of periods used in the month.
3. Divide the number of periods used in a given month by the total number of periods in that same month.
4. Take the result (percentage) and apply it to the monthly daycare ceiling.
5. Apply the same percentage to the employee share.
6. The daycare allowance corresponds to the difference between the prorated employee share and the amount paid by the employee or the prorated monthly ceiling, whichever is the lesser.

Example - Daycare Allowance - Pro-Rating Reference

Example 1 - Where the amount claimed does not exceed the prorated post ceiling.

In the month of June 2018, an employee sends their toddler to daycare Monday mornings, all-day on Tuesdays, and for the afternoon on Wednesdays.

Data

Total number of periods in June 2018, at post, is 42

Number of periods used is 16

Actual cost of daycare paid by employee for June (hypothetical): $1,200

Employee share is $1,436 per month for toddlers (based on 2018 daycare rates as specified in FSD 32 Appendix A)

Post ceiling is $4,308  (based on 2018 daycare rates as specified in FSD 32 Appendix A)

Example 2 - Where the amount requested by the employee exceeds the prorated monthly daycare ceiling.

In the month of June 2018, an employee sends their toddler to daycare Monday mornings, all-day on Tuesdays, and for the afternoon on Wednesdays.

Data

Total number of periods in June 2018, at post, is 42

Number of periods used is 16

Actual cost of daycare paid by employee for June (hypothetical): $1,650

Employee share is $1,436 per month for toddlers

Post ceiling is $4,308