ece wage enhancement - british columbia · enhancement (ece-we) was implemented for front-line eces...

ECE Wage Enhancement FUNDING GUIDELINES MINISTRY OF CHILDREN AND FAMILY DEVELOPMENT

Version: January 8, 2020

ECE Wage Enhancement - Funding Guidelines |

Contents ECE Wage Enhancement Overview 5 Who is Eligible 9

Organization Eligibility 9

Facility Eligibility 9

Facilities offering child care programs that are eligible for the CCFRI 10 Opt-in for CCFRI-ineligible facilities 10

ECE Staff Eligibility 11

ECE Employees in Unionized Facilities 12

Application Process 15

Application Timelines 15

Approved Organization Employer Responsibilities 17 Funding and Payments 21

Payment Frequency 21

Funding Amounts 21

Monthly Maximum 21

Statutory Benefits Funding 22

Employer Health Tax (EHT) Offset Funding 23

Income Tax Deductions / Statutory Benefits Implications / Leaves of 23 Absence

Reporting Requirements and Process 25

Ongoing Monthly Reporting Requirements and Timelines 25

Reporting Guidelines 25

Monitoring and Verification Processes 29 For More Information 30 Appendix A: Definitions 30



Recruiting and retaining a skilled, knowledgeable Early Childhood Educator (ECE) workforce to improve the overall quality of early childhood programs throughout British Columbia is a key factor in implementing Childcare BC.

ECE Wage Enhancement Overview To support recruitment and retention and help fulfil government’s commitment to supporting the creation of 22,000 new licensed child care spaces by 2021, a Wage Enhancement (ECE-WE) was implemented for front-line ECEs working in eligible licensed child care facilities, starting January 2019.

This is the first step in a broader Early Care and Learning Recruitment and Retention Strategy to ensure compensation plans and human resource strategies support the development of a stable, qualified, and skilled professional ECE workforce, and in recognition of early care and learning as a sustainable and valued career.

The ECE-WE provides a wage increase of $1.00 per hour worked (plus funding to offset statutory benefits), up to a monthly maximum of 195 hours. The ECE-WE is provided to front-line ECEs (including front-line ECEs who are also owner/operators of the licensed child care facility/ organization) working in eligible licensed child care facilities, effective January 2019. In April 2020, the ECE-WE will be increasing by an additional $1.00 per hour, for a total increase of $2.00 per hour, plus statutory benefits.

The ECE-WE has two components: 1. A one-time only retroactive payment was issued by the Ministry to approved facilities

in early 2019 in recognition of eligible staff hours worked September 1 to December 31, 2018; and

2. An ongoing monthly payment issued by the Ministry to approved facilities in recognition of eligible staff hours worked January 1, 2019 and forward.

Organizations in receipt of Child Care Operating Funding (CCOF) that have also enrolled eligible facilities in the Child Care Fee Reduction Initiative (CCFRI), AND/OR licensed child care facilities that have been approved under the Province’s Universal Child Care Prototype Sites initiative, are eligible for the ECE-WE. Additionally, organizations with CCOF facilities not eligible for CCFRI funding (i.e. preschools, school age facilities that do not have kindergarten enrolments, and facilities that do not charge parent fees) may also apply for the ECE-WE.

Organizations are required to apply for the ECE-WE on behalf of their front-line ECEs (or themselves, if the CCOF contractor is also an eligible front-line ECE), including tracking and reporting the number of hours worked by eligible front-line ECEs on a monthly basis.

In order to qualify for the retroactive period, organizations were required submit an ECE- WE Application Form by December 31, 2018.


https://www2.gov.bc.ca/assets/gov/family-and-social-supports/child-care/6337_earlycareandlearningrecruitment_andretentionstrategy_report_web.pdf

https://www2.gov.bc.ca/assets/gov/family-and-social-supports/child-care/6337_earlycareandlearningrecruitment_andretentionstrategy_report_web.pdf

https://www2.gov.bc.ca/gov/content/family-social-supports/caring-for-young-children/running-daycare-preschool/child-care-operating-funding/child-care-fee-reduction-initiative-provider-opt-in-status


https://www2.gov.bc.ca/gov/content/family-social-supports/caring-for-young-children/running-daycare-preschool/universal-child-care-prototype-sites


The intent of this funding initiative is to enhance wages for front-line ECEs. As such, the ECE-WE may not be used by organizations to fund non-wage related supports, such as providing professional development opportunities such as staff education or training sessions, nor may it be used for facility improvements or other operating costs. In addition, the ECE-WE may not be used to replace wages that would normally be paid to an ECE by their organization, or to replace scheduled increases.

FIGURE 1: ECE-WE IMPORTANT DATES TO REMEMBER


Funding Modified Funding

posted on

CCOF organizations

Period

application deadline (in order to be

renewal for fiscal year 2019/20

SEPT 1, 2018

DEC 1, 2018

JAN 2019

APR 2019

2018 DEC 31,

2018 FEB - MAR

2019

Period ECE Wage

application

to CCOF

no later than Dec 1

submit staff

pay

Agreement begins (up to for hours worked 31/2019

ECE Wage Funding incorporated into standard

As reflected in Figure 2, for the January 1 to March 31, 2019 period, organizations need to enter into a modification to their CCOF Agreement with the Ministry in order to receive the ECE-WE. As of April 1, 2019, eligible organizations will receive their ECE-WE funding as part of the 2019/20 contract process.

FIGURE 2: OVERVIEW OF ECE-WE FUNDING MECHANISMS (JANUARY 1, 2019 THROUGH MARCH 31, 2020)

CCOF AGREEMENTS JAN - MAR 31, 2019

Operating Funding and CCFRI (existing contract)

ECE-WE (modification to existing contract)


Streamlined and consolidated process for CCOF, CCFRI and ECE-WE

CCOF AGREEMENTS APR 1, 2019 - MAR 31, 2020


Organizations must be in receipt of CCOF to participate in the Early Childhood Educator Wage Enhancement. Participation in the ECE Wage Enhancement is voluntary, meaning organizations must apply on behalf of their eligible facilities/staff.

Who is Eligible Receipt of the ECE-WE and/or the retroactive component is dependent upon the following three factors, which are detailed in the subsequent sections and outlined in Figure 3:

1. Organization eligibility; 2. Organization’s facility/facilities’ eligibility; and 3. ECE staff (employed or self-employed by the organization/facility) eligibility.

FIGURE 3: ELIGIBILITY CRITERIA FOR THE ECE-WE

Organization Eligibility Organizations must be in receipt of CCOF to participate in the ECE-WE. Participation in the ECE-WE is voluntary, meaning organizations must apply on behalf of their eligible facilities/staff.

Facility Eligibility CCOF organizations may have a single facility that delivers licensed child care (e.g. In- Home Multi-Age child care provider etc.), or multiple facilities delivering licensed child care in a variety of settings. For the purposes of administering the ECE-WE, funding will be provided based on the facility’s physical address/location rather than by facility license, in most circumstances.

In order for ECEs working at each facility to be eligible for the ECE-WE, the organization must meet the eligibility criteria outlined in the “Organization Eligibility” section, and the facility must meet the following criteria:


ORGANIZATIONAL CRITERIA

FACILITY CRITERIA

ELIGIBLE ECE CRITERIA

• Working in a front-line capacity • Hold a valid ECE certification in good standing • Be directly employed (or self-employed) by the eligible facility/organization

• Enrolled in CCFRI (if eligible to do so); or • Hold a Universal Child Care Prototype Contract

• In receipt ofCCOF • Applied for ECE-WEby December 31, 2018 (for Retroactive Component) • Agreed to transfer funding to eligible ECEs

» Have been approved to opt into the CCFRI if it is eligible to do so, OR approved as a Universal Child Care Prototype Site. Please note that:

» Front-line ECEs working at facilities that are ineligible for CCFRI funding (i.e. preschools, school age facilities that do not have kindergarten enrolments, and facilities that do not charge parent fees) are also eligible for the ECE-WE as long as the facility is in receipt of CCOF.

» Front-line ECEs working at facilities that offer a combination of CCFRI- eligible and ineligible child care programs (e.g. Preschool [ineligible] and Infant/Toddler [eligible]) are also eligible for the ECE-WE, as long as all eligible care programs are enrolled in the CCFRI.

If a facility chooses not to enroll, or is no longer approved or otherwise permitted to participate in CCOF, the CCFRI, or the Universal Child Care Prototype Site initiative, ECEs working at that facility will not be eligible for the ECE-WE. A facility that has opted in to the ECE-WE cannot opt out during the length of their current contract period.

Facilities offering child care programs that are eligible for the CCFRI While an organization may have multiple facilities, each facility’s eligibility for the ECE-WE is assessed separately (unless they share the same physical location). Therefore, the eligibility of an organization’s facility is not contingent on the CCFRI status of any other facility within that organization. Facilities are considered eligible for the CCFRI if they provide care to children in the “Under 36 months” and/or “3 years to Kindergarten” CCOF categories and charge parent fees. Facilities that do not provide care to these age groups and/or do not charge parent fees are considered ineligible for CCFRI, but are still eligible to apply for the ECE-WE.

Example: Organization A has three facilities (Facility 1, 2 and 3). Facilities 1 and 2 are eligible for the CCFRI, and Facility 3 is ineligible. Facility 1 has opted in and been approved for the CCFRI, while Facility 2 has not opted in. In this scenario, Facilities 1 and 3 are eligible to receive the ECE-WE, but Facility 2 is not.

Opt-in for CCFRI-ineligible facilities Front-line ECEs employed/self-employed at facilities that are not eligible for CCFRI funding, (i.e. preschools, school age facilities that do not have kindergarten enrolments and facilities that do not charge parent fees) may still be eligible for the ECE-WE, so long as the facility is in receipt of CCOF.

Facilities ineligible to participate in the ECE-WE include, but are not limited to:

» Facilities whose organization has not signed a CCOF Funding Agreement;


» Facilities that provide a type of child care eligible for the CCFRI, but have not been approved for the CCFRI;

» Facilities that provide multiple care programs on-site (e.g. Preschool and Infant/Toddler care), but have not enrolled their CCFRI-eligible care programs in the CCFRI; and/or

» Facilities that do not employ/self-employ front-line ECEs.

ECE Staff Eligibility

Eligible Staff Eligible ECEs must:

» Hold a valid Early Childhood Educator; Infant and Toddler Educator; and/or Special Needs Educator certification issued by the ECE Registry;

» Be in Good Standing (see Appendix A: Definitions) with the Early Childhood Educator Registry; and

» Be a front-line ECE (see Appendix A: Definitions) directly employed or self-employed on a full- or part-time/casual basis by a licensed child care facility that is in receipt of CCOF and has been approved to opt in to both the CCFRI (if eligible to do so) and the ECE-WE.

Ineligible Staff Individuals and staff types ineligible to receive the ECE-WE include individuals who don’t hold an active ECE certification issued by the ECE Registry and/or who are not working in a front-line capacity.

Other ineligible individuals include, but are not limited to:

» ECEs working as Supported Child Development (SCD) Consultants and/or SCD Support Workers;

» ECEs primarily working in an administrative function » ECE Assistants; » Volunteer (unpaid) staff; » ECEs who are employed as independent contractors. Note: this does not include

owners/part- owners of a facility participating in the ECE-WE who work in a front-line capacity.

» ECEs caring solely for their own children.


Important Notes on staff eligibility: » The intent of the ECE-WE is to support ECEs working in a front-line capacity

providing direct care to children in a licensed setting. » Government recognizes that ECE Assistants and all Early Care and Learning

Professionals are important to the sector and support the overall provision of quality care; at this time, however, eligibility for the ECE-WE is limited to certified ECEs.

» Government is responding first to the most urgent needs within the sector: increasing ECE staffing and responding to the critical need for trained and qualified early childhood educators, as well as improving families’ access to affordable child care. In addition, the purpose of targeting this wage enhancement to certified ECEs is to encourage more individuals to obtain their certification.

Facilities that choose to employ a higher number of ECEs than what is required under the Child Care Licensing Regulation are eligible to report hours worked by all front-line ECEs employed at the facility, regardless of staffing ratio.

ECE Employees in Unionized Facilities Approved organizations with facilities that employ unionized front-line ECEs may be eligible for the ECE-WE, as reflected in Table 1, provided they have reached a local agreement with their union to amend their collective agreements in order to implement the ECE-WE. Unionized front-line ECE employees working at approved organizations/facilities may qualify for the ECE-WE if their wages are set through local agreement negotiations. In some instances, recently ratified collective agreements have set out a process for ECEs whose wages are set through these local agreements to access the ECE-WE.

Organizations with facilities who have provincially-funded child care programs (i.e. the province funds more than 50% of the program) where unionized ECE wages are set through Joint Job Evaluation Plan classification and wage grids currently do not qualify for the ECE-WE. In these cases, Government’s Low-Wage Redress funding supports ECE wage adjustments that exceed those available through the ECE-WE.


TABLE 1: ECE-WE ELIGIBILITY IN UNIONIZED ENVIRONMENTS

Type of Unionized Employer

Description Eligibility for ECE-WE

1) Community Social Services Employers’ Association (CSSEA) Member -- provincially funded ECEs

Employer is a CSSEA Member and subject to collective agreement with the Community Social Services Bargaining Association (CSSBA).

Receivesmorethan50%oftheirchildcare operating costs from the Province.

Employers must pay unionized ECE wages according to the CSSBA-CSSEA Collective Agreements. The rates are set through CSSEA’s Joint Job Evaluation Plan (JJEP) wage grids.

Not eligible. Government’s Low-Wage Redress funding supports ECE wage adjustments.

2) CSSEA Member – non-provincially funded ECEs

Employer is a CSSEA Member.

Receiveslessthan50%oftheirchildcare operating costs from the Province– not eligible for Low-Wage Redress funding for child care operations.

Some employers have been paying ECEs according to CSSBA Collective Agreements (i.e., as per JJEP wage grids) while others have been paying ECEs at rates lower than JJEP wage grids(these lower ECE rates are set through local side agreements that modify the CSSBA Collective Agreements).

Eligible. The ECE-WE funding will partially offset the cost to employers of matching or narrowing the gap with the new JJEP rates to be established per the 2019-2022 CSSBA Collective Agreement.

Subject to confirmation they are paying the JJEP wage rates or, if a lesser amount, aside agreement has been concluded to implement the ECE-WE.

3) All Other Unionized Employers

Any other unionized employers (public, non- profit, or private) with a collective agreement that includes ECEs.

May be eligible, contingent on confirmation that the Employer has reached an agreement with their union to amend their collective agreements in order to implement the ECE-WE.


Application Process Eligible organizations can submit an ECE-WE Application form¹ identifying which facilities are applying for the wage enhancement. If approved, organizations are deemed to have accepted the terms and conditions in the ECE-WE Modification Funding Agreement, available on the CCOF ECE-WE webpage.

For the period between January 1 to March 31, 2019, once notified of approval, organizations will then be able to submit claims for eligible hours worked for each of their eligible facilities for that time period. For April 1, 2019 to March 31, 2020, organizations have the opportunity to apply for the ECE-WE, as part of the 2019/20 CCOF Funding Agreement process.

Application Timelines Organizations can submit an application for the ECE-WE at any time. However, in order to be eligible for the retroactive component, the application form had to be received on or before December 31, 2018.

Once an organization’s application is approved, the ECE-WE will be back-dated to the 1st of the month in which they applied as long as their application is received on or before the 20th of the applicable month.

Facilities approved as Universal Child Care Prototype Sites will have already entered into the Universal Child Care Prototype Sites agreement by or shortly after the commencement of the Retroactive Period and will therefore not be subject to the above requirements.

¹ Note – this does not apply to Universal Child Care Prototype Sites, which will receive ECE-WE through separate contracts.


https://www2.gov.bc.ca/assets/gov/family-and-social-supports/child-care/ece_we_funding_agreement.pdf

Approved Organization Employer Responsibilities Gathering Consents for Participation and Reporting from Front-line ECEs Organizations should ensure their ECE employees are aware of the organization’s participation in the ECE-WE.

Organizations must ensure that all eligible ECE employees for whom they will be submitting either Monthly ECE Reports or a Retroactive Period Report sign a written acknowledgement which confirms their knowledge, consent, and authorization to the organization collecting and disclosing to the Ministry personal information and other information which will be used for the administration, ongoing planning, evaluation, and auditing of the ECE-WE.

Organizations are required to keep each eligible ECE’s signed written acknowledgement on file in accordance with record retention obligations outlined in the CCOF Agreement and provide a copy to the Ministry, upon request.

Confirming Front-line ECE Certification Organizations are responsible for confirming that all staff employed as Early Childhood Educators (ECE) hold valid certification issued by the BC Early Childhood Educator Registry.


Online validation of ECE Certificate In order to be eligibletoreceive the ECE-WE, ECE staff must hold valid certification and be ingood standing with the ECERegistry, meaning their certificate has not been suspended or cancelled. To verify an ECE Certificate and ensure ECE staff meet this criteria, the facility/organization can use the ECE Registry online Certificate Validation tool. Touse this tool, you will require the ECEstaff member’s lastname, certificate number and expiry date as noted on their certification. For further information on staffing requirements as set out in the legislation, refer to Section 19 of the Child Care Licensing Regulation (CCLR).

https://earlychildhoodeducator.gov.bc.ca/Public/CertAndRenewal/Certificate_Validation.aspx

http://www.bclaws.ca/civix/document/id/complete/statreg/332_2007

Payment to Eligible ECEs Organizations are required to distribute wage enhancement payments to ECE employees within 30 days after receiving the funding from the Ministry². However, there may be cases when an organization receives the wage enhancement funding for an ECE employee who is on an approved leave, such as a parental leave. If the organization wishes to distribute the wage enhancement payment to that particular ECE Employee later than 30 days after the organization has received the funds, then the organization must first request the Ministry’s consent to the proposed delay. The Ministry will then determine at its discretion whether to permit the requested delay, taking into consideration the circumstances of the situation. In no case will the delay in distribution of funding be permitted beyond the expiry date of the CCOF agreement.

Providing Information to ECEs Organizations should take measures to ensure they make their eligible front-line ECEs aware the ECE-WE is a discretionary payment made by the Ministry, rather than an ongoing wage increase provided by their employer and that it is subject to decrease/increase or discontinuance at the Ministry’s sole discretion. As such, approved organizations should clearly indicate the ECE-WE funding is being provided as a separate amount from their regular wage or salary. The Ministry recommends organizations either input the ECE-WE as a separate line on eligible employee pay stubs, or issue as a separate payment labeled “Provincial Child Care ECE Wage Enhancement [Month]”. Organizations may include an ECE-WE payment amount monthly or on each pay cheque, in order for front-line ECE employees to be able to easily reconcile their ECE-WE payments against their hours worked.

²Note–this does not apply to Universal Child Care Prototype Sites, as these sites are subject to different payment schedules. It also does not apply to Statutory Benefits Funding allocated for vacation pay in the case where the employee receives paid vacation time as the employer will use that portion of the additional Statutory Benefits Funding to provide the employee the ECE-WE for the hours they are on paid vacation.


Use of ECE-WE Funding The ECE-WE may not be used to replace wages that would normally be paid to an ECE by their employer facility, nor may it be used to replace scheduled increases. The ECE- WE funding must be distributed over and above the regular hourly wage of the ECE Employee.

Organizations must use the ECE-WE funding to:

» Enhance the regular wage and statutory benefits of eligible front-line ECEs; and » Pay eligible front-line ECEs for hours worked, up to the maximum allowable

195 hours per month.

Organizations must NOT use the ECE-WE funding to: » Lessen the wage rate paid to front-line ECEs; » Replace the planned wage increases by the organization/facility that would

generally be customary and that ECE staff would reasonably expect; or » Pay employees for days/hours of sick leave, parental leave, or other paid leave

of absence, other than earned vacation time as permitted and set out in these Funding Guidelines

Accountability for Funding Organizations participating in the ECE-WE are accountable for how the ECE-WE funding is disbursed under the terms of their funding agreement(s) with the Ministry. If it is determined that funding was disbursed in error or based on incorrect information provided by the organization and/or facility, the Ministry reserves the right to require the organization to reimburse funding that was not distributed in accordance with the funding requirements and/or under the terms of the organization’s funding agreement(s) with the Ministry. If an investigation determines that an organization has made a fraudulent claim, it may impact the organization’s Good Standing with the Ministry and impact eligibility for CCOF/CCFRI or the Universal Child Care Prototype Site initiative.



The ECE Wage Enhancement provides a wage increase to eligible front-line ECEs of $1.00 per hour effective September 1, 2018, increasing to $2.00 per hour April 1, 2020. Additional funding for statutory benefits is also provided.

Funding and Payments ECE-WE funding has two components:

1. A one-time only retroactive payment issued in early 2019 in recognition of hours worked between September 1 and December 31, 2018; and

2. An ongoing, monthly payment through the facility’s CCOF contract for eligible hours worked in the previous month.

Payment Frequency Payments are distributed on an ongoing monthly basis (e.g. payment for hours worked in January 2019 are provided in February 2019); however, organizations need to re-enroll for CCOF funding each year in order to remain eligible for the ECE-WE.

Funding Amounts The ECE-WE provides a wage increase to eligible front-line ECEs of $1.00 per hour worked plus 18.57 cents on every dollar for statutory benefits up to a maximum of 195 hours per month per ECE (including any overtime hours worked), increasing to $2.00 per hour worked (plus funding for statutory benefits) effective April 1, 2020. Organizations need to renew their CCOF funding agreements with the Province on an annual basis in order to continue receiving the ECE-WE.

The ECE-WE is provided as a flat-rate enhancement, separate from the employee's hourly wage. As such, the ECE-WE is provided at a rate of $1.00 per hours worked ($2.00 per hour as of April 1, 2020), including overtime hours.

Monthly Maximum The ECE-WE is paid to front-line ECEs based on the total number of eligible hours worked within the approved facility in a month up to a maximum of 195 hours per month (including any overtime hours worked). This monthly maximum applies to the retroactive period as well. Front-line ECEs paid a salary/non-hourly also receive the ECE-WE based on a breakdown of reported hours worked.

Front-line ECEs working in more than one eligible facility or organization are eligible for the ECE-WE for their hours worked at each approved facility or organization up to a combined maximum of 195 hours per month.

Please note: The amount of front-line time reported as eligible for ECE-WE funding, and the funding received, should be commensurate with the facility’s license type, including the number of ECEs employed and facility’s hours of operation. Facilities requesting a high amount of ECE-WE funding relative to ECEs employed and operating hours may be contacted by the Ministry for more

1 The 18.57 cent rate applies for the 2019 tax year (January 1-December 31). This rate will increase to 18.73 cents as of January 1, 2020 and increases for 2021 will be addressed before the start of the 2021 calendar year.


information. This does not mean facilities that choose to employ a higher number of ECEs than what is required in the Child Care Licensing Regulation will be ineligible or penalized; however, such facilities may be contacted to provide additional information to explain their higher than anticipated claims.

Statutory Benefits Funding The Ministry is funding an additional 18.57%2 on each ECE-WE dollar paid for mandatory benefits, which includes five categories, as detailed in Table 2.

Calculations of payroll costs and benefits are made using the total salary amount: (Wage + ECE-WE). As a result, costs such as the employer’s CPP and EI contributions, Workers’ Compensation Insurance through WorkSafeBC, and the calculation of vacation and statutory holiday pay will be higher. The 18.57%2 funding is to offset these extra costs. Other changes to Employer-paid, but non- Statutory Benefits, such as extended health, dental and sick days etc., are not covered through the ECE-WE.

Note: The organization and/or facility may have a benefit surplus if the workplace insurance is at a lower rate than Workers’ Compensation Insurance. Organizations/facilities must use any remaining benefit funding for salaries or to fund additional benefit expenses, additional vacation/statutory holidays, etc.

TABLE 2: 2019 STATUTORY BENEFITS FUNDING

Employer Contributions Benefits payable by Employer to eligible

ECE Employees

EI (Employment Insurance), funded at 2.27%3for the Employer contribution, which is 1.4 times the employee contribution

Statutory Holiday Pay, funded at 4%, representing the following 10 days: New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, BC Day, Labor Day, Thanksgiving Day, Remembrance Day and Christmas Day

CPP (Canada Pension Plan), funded at 5.10%3 for the Employer contribution portion

Vacation Pay, funded at 4% or 6% of gross pay according to seniority, as per the Employment Standards Act. (Note that government funding to offset this cost is based on an average of 5%)

Workers’ Compensation Insurance (WCI) through WorkSafeBC, funded at 1.41%3. WCI is optional for certain Employers. Employers who do not pay Workers’ Compensation Insurance may reimburse their workplace insurance costs.

2 The 18.57 rate applies for the 2019 tax year (January 1-December 31). This rate will increase to 18.73 as of January 1,2020 and increases for 2021 will be addressed before the start of the new 2021 calendar year. 3 The CPP, EI and WCI rate applies to the 2019 tax year (January 1-December 31). These rates will be 5.25%, 2.21% and 1.46% for 2020 respectively.


Important Note: The CPP/EI and WorkSafeBC rates reflected in Table 2 are based on the January 2019 rates, and apply to all eligible hours (both retroactive and those worked January 1, 2019 and forward) for a total of 18.57%, including statutory holiday and vacation pay. This rate will increase to 18.73 as of January 1. Increases for 2020 and increases for 2021 will be addressed before the start of the new 2021 calendar year.

Employer Health Tax (EHT) Offset Funding The EHT is an annual payroll tax that may apply to some employers beginning January 2019. The Ministry will provide funding to offset any increase in the Employer Health Tax (EHT) an organization is required to pay as a result of participating in the ECE-WE initiative.

Further information on reimbursement for the EHT will be provided; however, it is expected that employers seeking reimbursement for any ECE-WE-associated EHT increase will be required to provide the following documents:

» a copy of their EHT tax return; and » a Notice of Assessment showing the employer has paid their EHT balance in full.

Income Tax Deductions/Statutory Benefits Implications / Leaves of Absence The ECE-WE is considered income and therefore all statutory deductions apply. Separate accounting is not required.

ECE-WE funding to front-line ECE Employees is subject to standard deductions for income tax and Statutory Benefits (see Appendix A; Definitions). The ECE-WE is paid for hours worked in the approved facility; therefore, hours of sick time and unpaid leave, as well as paid leave such as parental leave and long-term disability leave, are not eligible for the ECE-WE. Hours paid by the employer where the ECE is engaged in professional development and/or attendance at union meetings, are also eligible for the ECE-WE.


https://www2.gov.bc.ca/assets/gov/taxes/employer-health-tax/notice-2018-001-employer-health-tax.pdf

https://www2.gov.bc.ca/assets/gov/taxes/employer-health-tax/notice-2018-001-employer-health-tax.pdf


ECE Wage Enhancement - Funding Guidelines | Page 24

Reporting Requirements and Process Once approved in the ECE-WE, organizations are required to report on an ongoing basis to confirm the number of front-line ECEs working directly with enrolled children at each approved facility, as well as the number of hours worked by each ECE in the approved facility.

Ongoing Monthly Reporting Requirements and Timelines Claims for the ECE-WE are based on actual monthly hours worked so must be submitted after staff hours/days have been worked, and are to be reported monthly. A facility may submit a claim after the last day of the applicable month and by the 15th of the immediate following month (e.g. for payment for February 2019, reported hours must be submitted by March 15, 2019). Organizations will not be required to pay eligible ECEs the ECE-WE funding in advance of receiving the funding from the Ministry.

Facilities participating in the Universal Child Care Prototype Site initiative report the same information through a modified version of their monthly reporting template.


Reporting Guidelines All hours worked by eligible front-line ECE staff in eligible facilities are to be tracked and recorded. The following guidelines will assist organizations in tracking hours worked at each eligible facility:

» Organizations should track and report staff hours at each eligible facility for all eligible

ECE staff that worked any hours in the reporting period (e.g. each month), including on-call/casual/part-time ECE staff as follows:

» Hours of sick time and unpaid leave, as well as paid leave such as parental

leave and long-term disability leave, are not eligible for the ECE-WE (including during the retroactive period) and should not be reported as hours worked.

» Hours paid by the employer where the ECE is engaged in professional development and/or in attendance at union meetings are eligible for the ECE- WE.

» Statutory holidays should not be reported as these hours will already be compensated through the funding provided to offset mandatory Statutory Benefits.

» Monthly hours worked by eligible ECEs must be documented on staff attendance records and retained by the employer facilities participating in the ECE-WE for verification and audit purposes for such period as may be determined under the ECE-WE contract provisions.

» While earned vacation time is eligible for the ECE-WE, it should not be tracked and reported on the form if the employee is not at work for those hours. Depending on the practice in each facility, the ECE-WE will be applied to vacation time in one of the following two ways:

1. Organizations may pay employees a percentage of their gross wages instead

of paid vacation leave. In this case, report all hours worked as usual. The WE will be paid based on these hours worked, and a portion of the additional statutory benefit funding provided to the facility will cover the cost of additional vacation pay to these employees.

2. Organizations may give employees vacation as time off with full pay. In this case, do not claim hours on reports for the time eligible employees are away on paid vacation. Rather, only claim hours for time actually worked. The ECE-WE funding for this vacation time is included in the additional Statutory Benefits Funding paid to your facility. The Employer will use that portion of the additional Statutory Benefits Funding to provide the employee the ECE-WE for the hours they are on paid vacation. This way, eligible employees do not receive a lower pay rate when they take earned paid vacation leave.


Monitoring and Verification Processes Organizations participating in the ECE-WE are accountable for how the WE is disbursed under the terms of their funding agreement(s) with the Ministry.

The Ministry reserves the right to audit an organization and/or facility at any time to ensure ECE-WE funds are spent in accordance with the instructions outlined in these Guidelines and the ECE-WE contractual provisions to which the organization is bound. Should the Ministry decide to audit a facility and/or organization, the facility and/or organization must participate in the audit process cooperatively. If an organization does not cooperate, the Ministry can withhold or discontinue ECE-WE funding for the organization and/or facility, and require the organization to reimburse funding that was not distributed or accounted for in accordance with these guidelines and/or the organization’s funding agreement(s) with the Ministry. If it is determined that the Ministry disbursed funding in error or based on incorrect information provided by the organization and/or facility, the Ministry reserves the right to require the organization to reimburse funding in the amount the organization was overpaid. Failure to repay the overpayment may result in the loss of the organization’s good standing with the Province, which could result in ineligibility and immediate revocation of other government funding including but not limited to CCOF and CCFRI.

Organizations are required to maintain records verifying that the ECE-WE was received and distributed to individual eligible front-line ECEs, as well as records to support all hours and ECE-WE funding claimed on the facility’s monthly reporting form. The required records include but are not limited to:

» Verification of valid ECE certification for all ECEs receiving the ECE-WE; » Copy of signed and submitted ECE-WE Application Form; » Copies of monthly reporting documents/forms indicating staff and ECE-WE hours claimed; » Copies of consent forms signed by staff confirming their knowledge,

consent, and authorization for collecting and disclosing to the Ministry personal;

» Staff schedule and/or staff attendance records; » Records for funding received and payments made to staff; » Records documenting receipt of funding by eligible front-line ECE staff for whom

funding was claimed; and » Staff payroll records including T4s and T4As.

The Ministry may request that these and other documents be provided by the organization for the purpose of conducting verification and audit on any or all of the organization’s approved facilities.

In the case of a discrepancy in an ECE-WE payment, the Ministry recommends that all Front-line ECEs in receipt of the ECE-WE retain copies of their paystubs.


For More Information For information about CCOF, CCFRI and the ECE-WE, please call the CCOF Program: Telephone: 250 356-6501 (Greater Victoria) or Toll free in BC: 1 888 338-6622 (option 2) Online: gov.bc.ca/childcareoperatingfunding

For information about ECE certifications and renewals, please call the Early Childhood Educator Registry: Telephone: 250 356-6501 (Greater Victoria) or Toll-free in BC: 1 888 338- 6622 (option 3) Online: gov.bc.ca/earlychildhoodeducator

Appendix A: Definitions Child Care Operating Funding (CCOF): funding provided by the Ministry of Children and Family Development (the Ministry) to eligible licensed child care organizations on a per facility basis to assist with the day-to-day costs of running a licensed child care facility.

Child Care Fee Reduction Initiative (CCFRI): enhanced funding provided by the Ministry to eligible licensed child care providers in receipt of CCOF to reduce parent fees by a prescribed amount. Licensed Group and Family providers already receiving CCOF and providing care for children in the “Under 36 months” and/or aged “3 years to Kindergarten” CCOF category may apply for the initiative.

Direct Care: directly responsible for and engaged in the care and supervision of children enrolled in a licensed child care facility.

Early Childhood Educator (ECE): an individual who holds an Early Childhood Educator, Infant and Toddler Educator; or Special Needs Educator Certificate issued by the BC Early Childhood Educator Registry under Division 2 of part 3 of the Child Care Licensing Regulation.

Early Childhood Educator Registry (ECER): The ECER is the legislated authority responsible for the certification of ECEs and ECE Assistants; the recommended approval of post-secondary educational institutions offering early childhood education programs; and the investigation of practice concerns regarding ECEs and ECE Assistants.

ECE Employee: means a Front-line ECE, including casual employees, employed at a licensed child care facility that is participating in the ECE-WE program, but does not include ECEs that such facility may engage as independent contractors. For clarity, the owner or part owner of a licensed child care


http://www.gov.bc.ca/childcareoperatingfunding

http://www.gov.bc.ca/earlychildhoodeducator





https://www2.gov.bc.ca/gov/content/education-training/early-learning/teach/training-and-professional-development/become-an-early-childhood-educator

facility that is participating in the ECE-WE program who works in a Front-line capacity is considered an ECE Employee for the purposes of the ECE-WE.

ECE-WE Application Form: the application form that organizations must complete in order for any eligible child care facilities (in receipt of CCOF and CCFRI if eligible) to be considered for the ECE-WE, including the retroactive funding component.

ECE-WE Modification Agreement: organizations will need to enter into a modification to their CCOF Agreement with the Ministry in order to receive the ECE-WE. As of April 1, 2019, eligible organizations will receive their ECE-WE funding as part of the 2019/20 contract process.

ECE-WE Monthly Tracking Form: the monthly tracking form organizations are required to complete and submit to the Ministry on an ongoing basis (on a per facility basis), starting in January 2019.

ECE-WE Retroactive Period Tracking Tool: the tracking tool available on the Ministry website to assist organizations in tracking eligible ECE staff hours during the Retroactive Period (September 1, through December 31, 2018) on a per facility basis.

Employer: the owner or part-owner of a licensed child care facility participating in the ECE-WE. Under the ECE-WE, owners may be eligible to receive the ECE-WE provided they hold valid ECE certification in good standing and are working in a front-line capacity at such facility or facilities, as the case may be.

Employer Health Tax (EHT): an annual provincial payroll tax that will apply to Employers beginning January 2019.

Front-line ECE: a certified ECE who spends 50% or more of their working time providing Direct Care to children enrolled in a licensed child care setting (note - the remaining 50% of working time must also be in the licensed child care setting, but could include administrative time, etc). A front-line ECE can be an employee, or an owner/operator, and can work full time or part time.

Good standing: In the case of ECE Certification, refers to the status of a certification, where an ECE holds a valid ECE Certificate issued by the Director of the ECE Registry that is not suspended, cancelled, or expired. In the case of an Organization, refers to a status of good standing with BC Corporate Registry, if a non-profit society or a registered company, and having either no outstanding balances owing to the Ministry or have established payment plans.

Licensed Child Care Facility: refers to a facility receiving CCOF as outlined in Schedule A of a CCOF Agreement.


https://www2.gov.bc.ca/gov/content/family-social-supports/caring-for-young-children/recruitment-retention-strategy

https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax/employer-health-tax-overview

Maximum hours: The ECE-WE will be paid to Front-line ECEs based on the total number of eligible hours worked in an approved facility in a month up to a maximum of 195 hours per month (including any overtime hours worked). This monthly maximum applies to the Retroactive Period as well.

Organization: The Contractor under an existing CCOF agreement is the entity which can enter into the modification to the CCOF Agreement with the Ministry in order to receive the ECE-WE.

Retroactive Period: the period from September 1, 2018 to December 31, 2018, for which eligible Front-line ECEs may receive a one-time-only payment in recognition of hours worked at an eligible licensed child care facility, as long as they are still in the employ of the organization (providing front- line care to children in a licensed setting) as of January 15, 2019.

Statutory Benefits: the Employer’s cost of the statutory group benefits associated with the increased wages provided as a result of this WE funding. Statutory group benefits include:

» Employment Insurance (EI); » Canada Pension Plan (CPP); » Workers’ Compensation Insurance, through WorkSafeBC; » Statutory Holiday Pay; » Vacation Pay; and » Other such benefits as may be statutorily imposed during the term of the contract period.

Statutory Benefits Funding: funding provided by the Ministry to offset the increased costs of Statutory Benefits associated with the ECE-WE.

Universal Child Care Prototype Site: A child care facility that has entered into a contract with the Ministry to participate in the Universal Child Care Prototype program.



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