ChildCare Aware is a military program designed to help offset the cost of childcare for active military.
You as the employer are responsible for withholding taxes on the amount you pay your employee over and above the subsidy. Our system will calculate the appropriate taxes and we will remit all employee and employer taxes on your behalf each quarter for the wages you pay through our system.
Your employee will receive a 1099 at the end of the year for the payments received from the military subsidy. They will be responsible for all taxes due on those payments.
You can read more about the program here or reach out to the subsidy program at info@childcareaware.org or 800-424-2246.