Learning Care Group News: May 24, 2023

Why Child Care Benefits Make Smart Business Sense

When it comes to offering child care benefits for your working families, it’s not just a one-way street. In the end, it’s beneficial for both parties as you work together toward your ultimate goal: your organization’s success.

Time and again, job seekers and employees have cited high-quality benefits as a reason to take—or stay at—a job. Post-pandemic, this is more true than ever.

Investing in Your Workforce—and Your Future

While it can be easy to think of employee benefits (including child care) in terms of expense, it’s just as important to consider it an investment. And like any good investment, there are definitely dividends that will pay out for your organization.

The U.S. Chamber of Commerce cites partnering with an experienced child care provider as one of the top two ways to serve your employees with benefits. It’s a straightforward process that is available to employers of any size or type.

The Employer-Provided Child Care Credit can save employers with eligible expenses more in taxes than using a deduction alone, and employees can exclude some child care benefits from their taxable wages. For employers, the credit can offset actual federal income tax liability.

How The Employer-Provided Child Care Tax Credit Works

As an employer, your savings in this area can be significant. In fact, you’re able to claim qualifying expenses up to 25 percent. This includes when you:

  • Acquire (or build), then continue with the ongoing management of, an onsite child care center for your employees
  • Pay for services with licensed child care programs (including even at-home care)

As the old saying goes, But wait, there’s more!

Need to contract with a third-party referral service for your child care benefit needs? When you go this route, there’s the opportunity for a 10 percent credit related to these expenses.

Partnering with the Pros

This is where Learning Care Group comes in.

As a leading provider with a national network, we have options for any size organization, as well as the experience and expertise to successfully guide you through the process. We work hard to ensure that you’re delivering for your team members, so that they continue to uphold their commitment to you and provide their very best. We’re well-versed in enabling companies to take care of their workforce—while also looking out for their bottom line.

For more tax credit details, visit the U.S. Chamber of Commerce website.