The Department Pay Percent (DP%)is applied prior to payment being made. DHS has no responsibility for charges above the Department authorized pay amount. See the Department's maximum hourly rates chart.

Computation of DHS Payment Amount

DHS payments for child care are based on:

• The number of hours of care authorized for each child in a biweekly pay period.
• The number of hours of care provided to each child during a biweekly pay period.
• The maximum hourly rate established by DHS for each type of care or the provider's charge, whichever is less.
• Whether the family must contribute to the cost of child care.

  Authorizations are either 30, 50, 75 or 90 hours in a biweekly period. The maximum number of hours authorized for a child is indicated on the Child Development and Care Certificate/Notice of Authorization (DHS-198).

Most families eligible for the Child Development and Care program must pay a portion of their child care costs. In these instances the Department Pay Percent (DP%) varies from 70% to 95%. The percent DHS pays is the DHS maximum rate or the provider's charge, whichever is less.

NOTE: If the DP% authorized is 100%, the DHS payment is 100% of the DHS maximum rate or the provider's charge, whichever is less.

When families have an income contribution, it is the providers responsibility to collect this amount from the family. The Department will not pay the family's share of the child care payment.

Payment amounts are determined by:

• dividing your reported charge for the pay period by the lesser of the number of hours authorized or hours billed. DHS compares this amount to the DHS maximum hourly rate and uses whichever is less.
• multiplying this amount by the authorized or billed hours, whichever is less, and
• multiplying the result by the DP%.