2021 General Operating Fund Staff Wages and Benefits Guideline PHASE 1: January to June 2021 PHASE 2: July to December 2021
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2021 General Operating Fund
Staff Wages and Benefits Guideline
PHASE 1: January to June 2021
PHASE 2: July to December 2021
Peel Region Licensed Child Care Service Providers
Centre-Based Programs
Early Years and Child Care Services
Release Date: June 1, 2021Table of Contents
SECTION 1: INTRODUCTION ............................................................................................................... 3
GOF Strategic Alignment and Objectives ........................................................................................... 3
SECTION 2: ELIGIBILITY CRITERIA..................................................................................................... 3
Change in Operator, Transfer, Sale or Closure .................................................................................. 4
SECTION 3: ELIGIBLE EXPENSES ...................................................................................................... 4
SECTION 4: GOF - STAFF WAGES AND BENEFITS (SWB) ................................................................ 5
Distribution to Staff ............................................................................................................................. 5
Payment to Staff - Requirements........................................................................................................ 6
Changes in Staff Complement ............................................................................................................ 6
SWB Funding - Surplus & Shortfall ..................................................................................................... 6
For-Profit Owners/Operators Eligibility................................................................................................ 7
SECTION 5: HISTORICAL FUNDING.................................................................................................... 7
SECTION 6: GOF UNDERSPENDING .................................................................................................. 8
SECTION 7: ACCOUNTABILITY MEASURES ...................................................................................... 8
A. Requirement to Keep and Provide Supporting Documentation ................................................ 8
B. GOF and Rate Increase Requests........................................................................................... 8
C. Requirement to Submit Information on Time............................................................................ 9
D. Key Performance Indicators (KPIs).......................................................................................... 9
E. GOF Reconciliation Report ...................................................................................................... 9
F. Recoveries .............................................................................................................................. 9
G. Audit Approach ........................................................................................................................ 9
H. Other Financial Reporting Requirements ................................................................................. 9
SECTION 9: CONTACT US ................................................................................................................... 9
APPENDIX A: INELIGIBLE EXPENSES .............................................................................................. 10
APPENDIX B: ELIGIBLE POSITIONS ................................................................................................. 11
APPENDIX C: CHANGES TO THE GOF STAFF DISTRIBUTION POLICY ......................................... 12
APPENDIX D: GOF UNDERSPENDING CALCULATION EXAMPLES ................................................ 13
2SECTION 1: INTRODUCTION
This Guideline provides licensed child care centres with key information regarding the 2021 General
Operating Fund (GOF) to support staff wages and benefits for Phase 1 (January 1 to June 30) and
Phase 2 (July 1 to December 31). To learn more about your requirements, you should review this
Guideline and your EYCCS General Operating Fund Agreements.
Federal Supports for Staff Wages: In 2021, service providers are required to continue to maximize
federal supports for staff wages and benefits (e.g. CEWS) as long as it is available. If you are eligible to
receive federal supports/CEWS but choose not to apply you will not be eligible for the portion of GOF
that would have otherwise been supported through CEWS.
GOF Strategic Alignment and Objectives
GOF Components Strategic Priority GOF Objectives
(as applicable)
Staff Wages and High Quality • Enhancing staff wages and benefits above
Benefits (SWB) mandatory requirements.
• Reducing the wage gap between Early Childhood
Outcome: Service
Educators working in licensed child care settings
providers recruit
and school boards.
and retain qualified
Historical Funding staff by: • Maintaining previous years staff wage/benefit grants
Pay Equity • Continuing to meet pay equity obligations
Administration • Offset a portion of incremental audit and administration expenses.
Funding • In 2021, the GOF Administration Funding allocation includes both GOF
and WEG Administration Funding.
SECTION 2: ELIGIBILITY CRITERIA
To be eligible to receive the 2021 GOF, you must:
1. Be a licensed child care provider in Peel Region with a signed EYCCS Fee Subsidy Agreement
dated on or before October 31, 2019.
• Programs supported through Capital Funding investments will be prioritized to receive SWB.
• Historical Funding is only available to service providers who previously received the former
Wage Subsidy in 2015.
2. Demonstrate the Region’s Authentic Participation requirements:
a) Inclusion of children in receipt of fee subsidy;
b) Continuous quality enhancement practices; and
c) Inclusion of children with special needs by participating in Peel Inclusion Resource Services.
33. Meet minimum wage ($14.25 per hour) and mandatory benefit requirements without utilizing GOF
(SWB and/or Historical Funding), Wage Enhancement Grant (WEG) and/or other provincial
funding.
4. Have business management practices which align with the Region’s priorities identified in the
Early Years and Child Care Service System Plan: 2019-2024.
5. Be in good standing with respect to financial/contract compliance and reporting requirements for
all funds provided. Non-compliance with this requirement might impact service provider eligibility
for all EYCC funding programs.
Change in Operator, Transfer, Sale or Closure
Please see the Service Provider Handbook for information related to changes in Operator, Transfer,
Sale or closure.
In the event of:
• A shares transfer when the licence remains unchanged, a new service provider may be
considered ineligible to receive Historical Funding and Pay Equity.
• An asset sale or for any reason where a new licence is issued, the service provider may be
considered ineligible to receive GOF-SWB and may no longer be eligible to receive Historical
Funding and Pay Equity.
• Closure: If a program ceases to operate, the Region at its discretion may prorate the agency’s
GOF funding amount.
Note: The Region reserves the right to review continued GOF eligibility on a case by case basis.
SECTION 3: ELIGIBLE EXPENSES
2021 GOF Eligible Expenses
Expense Description
Category
Staff Wages and Benefits* (use as per your most recently approved GOF Distribution Plan)
Staff wages • Enhance licensed child care program staff wages (over-and-above existing
and benefits minimum wage requirements).
enhancements • Support incremental employer mandatory benefit costs that result from GOF
wage enhancements.
• Continue to offset the employee or employer portion related to a non-
mandatory benefit plan (e.g. health and dental benefits).
42021 GOF Eligible Expenses
Expense Description
Category
Historical Funding*
Staff wages & • Improve the wage and benefits of eligible positions working in a licensed child
benefits care program (over-and-above existing wages and regulatory requirements for
enhancements minimum wage and mandatory benefits).
Staff positions should not receive less than what they received in 2015
Wage Subsidy payments.
• Cover mandatory employer contributions resulting from increased salary and
benefit costs related to Historical allocation funded salary.
• Support benefit costs (if previously approved by the Province).
Administration Funding
Audit/ • Offset incremental audit and/or administration/booking costs incurred to
Administration/ administer Region of Peel funding or reporting requirements.
Bookkeeping • Support internal process to track data and expenditures to fulfill reporting
costs requirements (both regional and provincial).
• Additional costs associated with the internal payment processes required to
provide GOF/WEG to staff.
Note: To streamline administration funding for service providers, beginning in 2021
the Region is combining the Wage Enhancement Grant (WEG) and the GOF
Administration Funding amounts. The combined Administration Funding allocation
will be issued through GOF.
Expenditures not listed above are considered ineligible. See Appendix A for examples of ineligible
expenses. For questions about eligible and ineligible expenses, please email
EarlyYearsSystemDivision@peelregion.ca.
* Refer to Appendix B for a detailed list of eligible and ineligible positions.
SECTION 4: GOF - STAFF WAGES AND BENEFITS (SWB)
Distribution to Staff
In order to issue the GOF- SWB, you must:
1. Ensure that you meet your regulatory requirements for minimum wage and mandatory benefits.
Since October 1, 2020, the minimum wage in Ontario is $14.25 per hour.
2. Continue to use your most recently approved GOF Distribution Plan methodology and follow the
process described in the Changes in Staff Complement subsection of this guideline.
5Important: if you are unable to continue using your approved distribution policy (e.g. need to
remove the seniority criteria), refer to Appendix C of this guideline.
Payment to Staff - Requirements
You are required to:
1. Distribute funding to eligible staff positions as part of your regular payroll process/schedule (e.g.
biweekly / monthly) during each phase in 2021.
• One-time and/or cash payments are not permitted.
• GOF cannot be carried over from Phase 1 to Phase 2.
• GOF cannot be carried over to 2022.
2. Include a ‘General Operating Fund’ notation and the amount payable on each paystub.
Changes in Staff Complement
If you experience a change (increase/decrease) in staff complement you must inform your Early Years
Specialist as soon as the change is known.
If you experience an increase in staff complement you must:
1. Reallocate SWB funds among all eligible staff using your most recently approved GOF
Distribution Plan/Policy. Note: If you need to change your distribution policy, refer to Appendix
C of this guideline.
2. Update the Staff Communication Letter and review the updated Staff Communication Letter with
all staff within 2 weeks of the change. Staff Communication Letters must be retained and made
available upon request.
3. Keep all signed Staff Communication Letters on file for 7 years for regional review, as required.
If you experience a decrease in staff complement you must not redistribute unused GOF to existing
staff. Unspent funding is considered surplus. Please refer to Section 6: GOF Underspending for
direction on how to use leftover GOF.
SWB Funding - Surplus & Shortfall
You should continuously review your SWB budget (funding amount) and forecast how much you are
expecting to spend by the end of each phase so that you can take corrective action. Changes in staff
complement within a fixed-funding amount may result on the following situations:
Situation Requirements
Balanced Budget: Service No action is required.
provider fully spends funding Note: If you are eligible for the CEWS, you should have
through regular payroll underspending as you must maximize the CEWS first and only
issue the portion of GOF not covered through the CEWS.
6Situation Requirements
Shortfall: you run out of funding Increases in staff complement will not result in a change to the
before the end of a phase (June funding allocation. If you run out of SWB funding you may
30 or December 31) choose to:
• Stop GOF-SWB payments to staff. If you choose this option,
you are required to clearly communicate this decision to staff
and your Early Years Specialist; or
• Maintain salary and/or benefit enhancements. In this case,
staffing costs over and above the approved SWB funding
amount are your sole responsibility.
Surplus: you expect to have Refer to Section 6: GOF Underspending for direction on how
leftover funding by the end of to use leftover/surplus GOF.
each phase
For-Profit Owners/Operators Eligibility
Owners/operators in a supervisor role or in another position to support ratios are eligible to receive at
a maximum an amount equal to the average enhancement amount distributed to staff if they are
employed by the child care agency and receive a T4. This amount will be prorated according to the
amount of time the owner/operator spends in that role. The total eligible amount is the maximum
allowed regardless of the number of owners/operators. Owners/operators have the option to accept the
funding or flow it back into the program to further enhance staff wages. For example: Service provider
‘A’ received $20,000 to support staff wages and benefits. The average amount distributed to staff as an
enhancement is $2,500. Based on the average, owners/operators in a full-time supervisor role would
be eligible to receive up to $2,500 as automatically calculated by the Funding Distribution Plan and
$1,250 if they support ratios 50% of the time.
SECTION 5: HISTORICAL FUNDING
This funding is available to service providers who previously received Wage Subsidy in 2015. Historical
Funding is intended to improve wages and benefits of eligible staff positions working in a licensed child
care program, making child care more affordable for families.
If you receive Historical Funding, you must:
1. Use this funding consistently with previous Wage Subsidy payments provided to eligible staff
positions. This includes:
a. Ensuring that staff do not receive less than what they received in 2015.
b. Using funding for eligible expenses only.
c. Allocating a reasonable portion of the funding to each position in a way consistent with
the achievement of your pay equity plan.
Note: For each phase in 2021 the distribution of Historical Funding cannot exceed $4,767
($794.5/month) for program staff and $1,285 ($214.1/month) for non-program staff. If you are
7eligible for CEWS, you can only use Historical Funding to cover the portion of the enhancement that
is not supported through CEWS.
2. Include Historical Funding payments in the job rates used by service providers in pay equity
calculations (as applicable).
3. Promptly report to the Region any significant reductions in service levels (including reduced
operating capacity) and/or staffing that is not temporary in nature. Funds not utilized will be
recovered through the Region’s reconciliation process. Please refer to Section 6: GOF
Underspending for direction on how to use leftover GOF.
4. Ensure that the Payment to Staff Position Requirements section of this guideline are met (these
requirements are also applicable to Historical Funding).
SECTION 6: GOF UNDERSPENDING
The Region anticipates there will be underspending in GOF during 2021 due to service providers
accessing the federal CEWS.
Service providers that expect to have leftover GOF may use their underspending in 2021 to offset
existing base wage expenses for program staff only.
• Any offset to base wages must be for wages paid above minimum wage ($14.25) that is not
supported through CEWS, WEG or any components of GOF (e.g. SWB, Historical Funding and
Pay Equity).
• You can only offset base wages of program staff who are eligible for GOF.
• Mandatory and non-mandatory benefits cannot be supported with leftover GOF.
Refer to Appendix B for eligible program staff positions and Appendix D for how to calculate the
amount that can be offset using GOF underspending.
SECTION 7: ACCOUNTABILITY MEASURES
To monitor the performance and impact of the funding and ensure that all GOF is invested in alignment
to the outcomes and requirements outlined in this Guideline, the Service Provider Handbook and your
EYCCS GOF Agreement, the following accountability measures have been implemented:
A. Requirement to Keep and Provide Supporting Documentation
• Retain all original supporting documentation for a minimum of seven years.
• Provide copies of staff communication letters, `staff payroll records, T4 statements, bank
statements, cancelled cheques, and pre-and-post GOF paystubs upon request.
• Additional reporting or audit requirements may be implemented on a case-by-case basis
B. GOF and Rate Increase Requests
You cannot include costs offset by GOF or any other Regional funding on your Rate Increase
Requests.
8C. Requirement to Submit Information on Time
Failure to submit complete information on time will result in progressive penalties, as outlined in the
Late Filing Policy, your EYCCS GOF Agreement and the Service Provider Handbook.
D. Key Performance Indicators (KPIs)
You are required to submit KPIs as part of your GovGrants GOF progress reports. Your progress
report may include submitting data such as:
• Number of staff supported by GOF by position (e.g. RECE’s, Non-RECE’s, Supervisors, Cooks,
other non-program staff)
• Per hour staff enhancement supported through Historical Funding
• Number of staff receiving non-mandatory benefits supported by Historical Funding
• Dollar value of non-mandatory benefits supported through Historical Funding
E. GOF Reconciliation Report
You are required to submit your GOF Reconciliation Report by August 31, 2021 (Phase 1 GOF)
and in January 2022 (Phase 2 GOF) through GovGrants.
F. Recoveries
You must return GOF funding to the Region in the following situations:
• Unspent funding;
• Closure of an agency; and,
• GOF not used in accordance with the terms of the of the EYCCS GOF Agreement or this
Guideline. Note: In this case, you may be deemed ineligible to receive other EYCCS funding.
When the Region determines that a service provider must return all or part of their GOF amount,
the service provider will be notified by e-mail. The amount owed must be repaid to the Region upon
demand to maintain ongoing eligibility for funding.
G. Audit Approach
Through the Region’s audit selection process, you may be contacted to complete an audit/review of
GOF. The Region also reserves the right to conduct check-ins at any time to assess service
provider’s actual and projected expenditures.
H. Other Financial Reporting Requirements
You should refer to the Service Provider Handbook, Early Years and Child Care Services Financial
Annual Information Return Guideline and your EYCCS Agreements for information on the Region’s
financial reporting requirements.
SECTION 9: CONTACT US
If you require additional information or have questions about this Guideline, please contact your Early
Years Specialist or e-mail: EarlyYearsSystemDivision@peelregion.ca.
9APPENDIX A: INELIGIBLE EXPENSES
2021 GOF Ineligible Expenses
Expense Category Description
1. Staffing costs • Budgeted wage compression or a situation of pay inequity in which, as
the minimum wage increases, the gap between staff paid at minimum
wage and those at a more senior/experienced level decrease.
• Retiring bonuses, gifts and honoraria paid to staff, staff (including
Administrator or owner) travel costs, staff uniform costs, etc.
• Staff not employed in a licensed child care program.
• Direct payment to any person who does not receive a T4 or T4A.
2. Legislative employment • Impacts due to legislative requirements or changes in legislation during
law requirements the currency of this Agreement
3. Non-arm’s length • A transaction occurs at non-arm’s length when it is between two
transactions not individuals who are related by blood, marriage, common-law
transacted at fair partnership or adoption. When this occurs, the transaction would
market value require additional documentation to ensure it has occurred at fair
market value.
4. Professional fees • Fees paid as a condition of employment such as annual membership
fees for the College of Early Childhood Educators and vulnerable
sector/criminal reference checks.
5. Operating costs other • Program supplies and resources
than staff wages and • Nutrition and meals for children in Programs
benefits • Occupancy costs (lease/property rentals and utilities)
• Debt costs, payments related to capital loans, mortgage financing, tax
liabilities and operating loans
• Transportation of children (i.e. vehicle lease, insurance, fuel costs)
• Property taxes
• Repairs and maintenance
• Fees paid as a condition of employment, professional organizations,
franchise fees and management fees
• Organization, franchise management and other fees.
6. Costs supported • Training and Professional Education, Wage Enhancement Grant,
through other Region of Special Purpose, Capital, Mitigation Funding, etc.
Peel funding streams
7. Generating Revenue • You cannot use GOF to generate a revenue. Federal, provincial or
regional child care funding cannot be used to contribute (directly or
indirectly) to service provider’s reserves, surplus, profit, and/or retained
earnings, etc. as applicable.
This list is not exhaustive. Any expenditures not listed under the allowable expenses section of
this Guideline are non-admissible.
Refer to your EYCCS General Operating Funding Agreement for a list of ineligible expenses.
10APPENDIX B: ELIGIBLE POSITIONS
General Operating Fund (GOF) General Operating Fund (GOF)
2021 GOF SUMMARY OF ELIGIBLE - Staff, Wages & Benefits - Historical
(GREEN) AND INELIGIBLE (RED) Salaries Employer's Salaries Employer's
Employer's Employer's
POSITIONS (above
Mandatory
Non- (above
Mandatory
Non-
(January 1 to June 30, 2021) minimum 1 2 Mandatory minimum 1 2
Mandatory
Benefits , Benefits ,
wage) Benefits wage) Benefits 3
Child Care Program Staff
Registered Early Childhood Educators (RECE) ✓ ✓ ✓ ✓ ✓ ✓
Supervisor ✓ ✓ ✓ ✓ ✓ ✓
Assistant Supervisor ✓ ✓ ✓ ✓ ✓ ✓
Program Staff without ECE ✓ ✓ ✓ ✓ ✓ ✓
Early Child Care Assistants ✓ ✓ ✓ ✓ ✓ ✓
Supply Staff (regular casual employment status) ✓ ✓ ✓ ✓ ✓ ✓
Permanent summer staff that work for
numerous weeks each year to cover ratios ✓ ✓ ✓ ✓ ✓ ✓
Director-approved program staff (take the place
of an RECE e.g. Montessori Teachers) ✓ ✓ ✓ ✓ ✓ ✓
Non-Program Staff
Bus Drivers ✓ ✓ ✓ ✓ ✓ ✓
Housekeeping ✓ ✓ ✓ ✓ ✓ ✓
Cooks ✓ ✓ ✓ ✓ ✓ ✓
Special Needs Resourding Staff ✕ ✕ ✕ ✓ ✓ ✓
Janitorial staff ✕ ✕ ✕ ✓ ✓ ✓
Administrator ✕ ✕ ✕ ✓ ✓ ✓
Clerical staff ✕ ✕ ✕ ✓ ✓ ✓
Maintenance Staff ✕ ✕ ✕ ✕ ✕ ✕
Unpaid Students ✕ ✕ ✕ ✕ ✕ ✕
Volunteers ✕ ✕ ✕ ✕ ✕ ✕
Students not in a permanent position ✕ ✕ ✕ ✕ ✕ ✕
Owners/Operators who do not occupy an
eligible position ✕ ✕ ✕ ✕ ✕ ✕
Fee for service contracts (including
temporary staffing agencies) ✕ ✕ ✕ ✕ ✕ ✕
Notes:
1. Service Providers should seek professional financial guidance regarding employer mandatory benefit payments to staff.
Additional information is available on the Canada Revenue Agency website: Employers' Guide - Payroll Deductions and
Remittances
2. Only incremental employer mandatory benefit costs that result from GOF- SWB or GOF- Historical salary enhancements.
3. If previously approved by the Province
Service Providers should contact their EYS if they have any questions regarding:
The eligibility of a position
A position not listed on this chart
11APPENDIX C: CHANGES TO THE GOF STAFF DISTRIBUTION POLICY
If you are unable to continue using your most recently approved GOF Distribution Plan methodology in
2021, you are required to:
1. Contact your Early Years Specialist as soon as you become aware of the change. Your Early
Years Specialist will provide you with a GOF template change request document, if applicable.
2. Develop a transparent and equitable method of distributing the GOF amount to eligible positions.
Funding may be distributed using some or all of the following categories:
• Total number of hours worked or a flat amount; and/or
• RECE qualifications (only recognized qualification).
Note: Early Years Specialists may inform service providers on how to use their staff
wages/benefits funding to ensure that the GOF outcomes are achieved.
3. Return a completed GOF template change request document and Staff Communication Letter to
your Early Years Specialist.
4. Participate in a review of your GOF template change request document and provide further
information as requested by the Region.
5. Review the Staff Communication Letter with all staff once your GOF template change request
document has been approved.
6. Adjust staff wages and benefits according to your new approved GOF Distribution Plan.
7. Have all eligible staff sign off on the approved communication letter.
8. Submit a copy of the signed letter to the Region as part of the 2021 GOF Reconciliation Report.
12APPENDIX D: GOF UNDERSPENDING CALCULATION EXAMPLES
• Service providers that expect to have leftover GOF after distribution of funding to eligible staff as
per their distribution policy may use their underspending in 2021 to offset expenses for existing
base wages of program staff only, who are eligible for GOF.
• Any offset to existing base wages must for wages paid above minimum wage ($14.25) and not
supported through CEWS, WEG, or any components of GOF.
EXAMPLE #1: Staff works for a base wage of $20.00 per hour
Portion of base wage $20.00 (base wage) x CEWS at 55% = $11.00
supported through CEWS
at 55% (% supported
would vary by provider)
Portion of base/minimum $14.25 (minimum wage) - $11.00 (CEWS portion) = $3.25
wage that must be paid by
the provider
Maximum of base wage $20.00 (base wage) - $11.00 (CEWS portion) - $3.25 (provider portion) = $5.75*
that can be offset by GOF
underspending *The provider can use GOF underspending to offset $5.75/hr of this staff wages.
EXAMPLE #2: Staff works for a base wage of $14.25 per hour (minimum wage)
Portion of base wage $14.25 x 55% = $7.84
supported through CEWS
at 55% (% supported
would vary by provider)
Portion of base/minimum $14.25 (base wage) - $7.84 (CEWS portion) = $6.41
wage that must be paid by
the provider
Maximum of base wage $14.25 (base wage) - $7.84 (CEWS portion) - $6.41 (provider portion) = $0*
that can be offset by GOF
underspending *The provider cannot use GOF underspending to offset this staff person’s wages.
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