Yes, a family member can get paid for childcare in NY through the state’s Child Care Assistance Program (CCAP), which reimburses eligible relatives who watch children while the parents work or attend school. Grandparents, great-grandparents, aunts, uncles, and non-resident siblings can enroll as “legally-exempt” providers, meaning they don’t need a daycare license but must pass a background check and finish a health and safety training. Parents, step-parents, and legal guardians cannot be paid to care for their own children.
Which Relatives Can Be Paid
Under 18 NYCRR § 415.1, a paid relative provider must be at least 18 years old and related to every child in care by blood, marriage, or court decree. The eligible relationships are:
- Grandparent or great-grandparent
- Aunt or uncle
- Sibling, but only if the sibling lives in a separate home from the child
The sibling rule reflects how New York categorizes care. Legally-exempt care is either in-home (in the child’s home) or family child care (in the provider’s home). A sibling living with the child fits neither.1Office of Children and Family Services. New York Regulations Title 18 – 415 Child Care Services
Parents, step-parents, and legal guardians are not on the list and cannot be paid by CCAP for watching their own children.2Office of Children and Family Services. Legally Exempt Child Care
One household-level bar applies: a relative cannot enroll as a family child care provider if anyone living in their home has been convicted of a felony or misdemeanor against children.1Office of Children and Family Services. New York Regulations Title 18 – 415 Child Care Services
Whether Your Family Qualifies for CCAP
CCAP is funded by the state, overseen by the Office of Children and Family Services, and administered county by county through local social services districts.3Office of Children and Family Services. Child Care Assistance Program (CCAP)
Income Limits
Family income must fall below 85 percent of the New York State Median Income. For June 1, 2025 through May 31, 2026, the annual limits are:4Office of Children and Family Services. Help Paying for Child Care
- Family of 2: $77,226
- Family of 3: $95,397
- Family of 4: $113,568
- Family of 5: $131,738
- Family of 6: $149,909
The parent or caretaker generally needs to be working, in school, or in another approved activity. Local districts run the applications and may add their own county-level requirements.
Child Age and Length of Approval
Children must be under 13 to qualify. The age limit extends up to 19 if the child is physically or mentally unable to care for themselves or is under court supervision.5Child Care Technical Assistance Network. Understanding Federal Eligibility Requirements
Once approved, eligibility runs for a minimum of 12 months as long as income stays below the threshold. A redetermination happens at the 12-month mark, or sooner if the change would benefit the family, such as a new baby or a drop in income that lowers the copayment.6Office of Children and Family Services. Updates to the Child Care Assistance Program
How Much a Relative Provider Gets Paid
Reimbursement is set by the state and varies by county, the child’s age, and whether the provider qualifies for the standard or enhanced rate. Legally-exempt family providers are paid at a percentage of what licensed and registered family day care homes receive, not the full market rate.7Office of Children and Family Services. Child Care Assistance Program Market Rates 2024
The standard reimbursement for an informal (relative) provider is 65 percent of the registered family day care market rate. Providers who meet extra qualifications get the enhanced rate of 70 percent.7Office of Children and Family Services. Child Care Assistance Program Market Rates 2024
New York groups its counties into four regions for rate-setting. Standard weekly rates for informal providers effective October 1, 2024:8Office of Children and Family Services. Attachment A – Child Care Assistance Market Rates 2024
- New York City (Bronx, Brooklyn, Manhattan, Queens, Staten Island): $260/week under age 2; $228 at age 2; $211 ages 3–5; $188 ages 6–12
- Suburban (Nassau, Putnam, Rockland, Suffolk, Westchester): $263 under 2; $260 at 2; $247 ages 3–5; $228 ages 6–12
- Upstate urban (Albany, Erie, Monroe, Onondaga, and others): $205 under 2; $195 at 2; $185 ages 3–5; $176 ages 6–12
- Upstate rural (remaining counties): $181 under 2; $172 at 2; $171 ages 3–5; $153 ages 6–12
These are ceilings. The actual payment is the lesser of what the provider charges or the applicable market rate.
What the Family Pays (Family Share)
Most approved families owe a weekly copayment called the family share. It is calculated as 1 percent of gross annual income above the state income standard, divided by 52 weeks and rounded to the nearest 50 cents. The minimum is $1 per week. Some families are exempt entirely, and the approval notice will specify the amount and how to pay it. The copayment applies whether the family uses a licensed center or a legally-exempt relative.4Office of Children and Family Services. Help Paying for Child Care
How the Relative Enrolls as a Provider
Forms
The main enrollment document is OCFS-LDSS-4699, the Enrollment Form for Provider of Legally Exempt In-Home Child Care and Legally Exempt Family Child Care. It captures the provider’s information, home address (which must be where care is provided), and relationship to each child.9New York Office of Children and Family Services (OCFS). Enrollment Form for Provider of Legally Exempt In-Home Child Care and Legally Exempt Family Child Care OCFS-LDSS-4699
The provider also submits the OCFS-6000 background check packet and OCFS-6001, which collects information on everyone in the household.2Office of Children and Family Services. Legally Exempt Child Care
Health and Safety Training
Before approval, the provider must finish an OCFS-approved training covering first aid, nutrition, safe sleep, and SIDS prevention. Two options exist:
- The online “Foundations in Health and Safety” e-learning course at ecetp.pdp.albany.edu
- A classroom “Health and Safety Training for Legally-Exempt Providers,” offered by local enrollment agencies and, in New York City, by the United Federation of Teachers
Completion is documented on OCFS-LDSS-4699.3, the Exempt Provider Training Record Form.10NYC HRA/OCFS/LDSS. OCFS-LDSS-4699.3 Exempt Provider Training Record Form
Background Check
Every legally-exempt provider must clear a comprehensive check, starting with fingerprinting scheduled on form OCFS-4930. It includes:2Office of Children and Family Services. Legally Exempt Child Care
- New York State criminal history check
- FBI criminal history check
- New York State child abuse and maltreatment registry screening
- New York State Sex Offender Registry check
- National Crime Information Center and National Sex Offender Registry check
The full package goes to the local Department of Social Services or a designated enrollment agency. Processing usually takes several weeks.
How the Money Actually Gets to the Caregiver
After approval, the provider is issued a unique provider ID used for all payments. The provider fills out timesheets recording days and hours of care and submits them to the local district by mail or web portal, depending on the county. The district then calculates payment based on the market rate and mails a check directly to the provider. Payment cycles are generally monthly. Attendance records must match the authorized hours, or payment can be delayed or reduced.8Office of Children and Family Services. Attachment A – Child Care Assistance Market Rates 2024
Taxes for Both Sides
Paying a relative for childcare creates tax duties for both the family and the caregiver, whether the money comes through CCAP or straight out of pocket.
If You Pay a Relative Privately
Paying a relative caregiver $3,000 or more in cash wages during 2026 generally makes you a household employer, meaning you withhold and pay Social Security and Medicare. Certain relationships are exempt from these taxes: wages paid to your spouse, your child under 21, or your parent (unless your parent watches your child under 18 and you are divorced, widowed, or meet other specific conditions).11Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide
Federal Unemployment Tax (FUTA) kicks in when you pay household employees $1,000 or more in any calendar quarter. Wages to a spouse, child under 21, or parent don’t count toward the FUTA threshold.11Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide
Child and Dependent Care Credit
Parents who pay a relative may claim the federal Child and Dependent Care Credit against qualifying expenses of up to $3,000 for one child or $6,000 for two or more. The credit percentage depends on adjusted gross income. The provider cannot be your spouse, the child’s other parent (if the child is under 13), your own child under 19, or anyone you claim as a dependent.12Internal Revenue Service. Topic No. 602, Child and Dependent Care Credit
Only what you actually pay out of pocket counts. Amounts covered by CCAP subsidies don’t qualify, though the copayment or anything you cover above the CCAP rate may.
Caregiver Income Reporting
All childcare payments, from CCAP or from the family, are taxable income to the caregiver and must be reported on federal and state returns. For 2026, the 1099-NEC reporting threshold for nonemployee compensation increased to $2,000.13IRS.gov. Publication 1099 General Instructions for Certain Information Returns
Watch for the Effect on the Caregiver’s Public Benefits
If the relative caregiver already receives public benefits, childcare income can push them off. Worth checking before enrolling.
SNAP requires gross monthly income below 130 percent of the federal poverty level. For 2026, that is $1,696 per month for a single-person household and $2,292 for a two-person household.14USDA Food and Nutrition Service. Supplemental Nutrition Assistance Program Income Eligibility Standards October 1, 2025, to September 30, 2026
For SSI, the impact depends on the recipient. Students under 22 can earn up to $2,410 per month (up to $9,730 per year in 2026) before earnings affect benefits. For non-student recipients, SSI excludes the first $65 of earned income each month plus half of what’s left, but regular childcare income can still cut the payment.15Social Security Administration. What’s New in 2026?
Medicaid uses its own income thresholds that vary by household size and category. A caregiver worried about losing benefits should call their local social services district to see how the childcare income would be counted before starting the enrollment process.