Employer child care benefits 

How employer child care benefits can give a competitive advantage in the search for talent.

In today’s economy, competition for top talent has never been fiercer. Personnel costs often account for over half of an organization’s operating costs, and for good reason. A skilled and experienced workforce can mean the difference between a company remaining competitive and being outmaneuvered. Employer child care benefits give leading organizations a crucial leg up in the war for talent. 

Father holding his child and makes silly faces

What types of child care benefits are an employee entitled to receive?

What types of child care benefits are an employee entitled to receive?

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In the United States, there is no federal law mandating employer child care benefits. There may be state or local mandates requiring an employer to provide coverage, but benefits are otherwise determined by the individual contract between the employer and employee. 

Is paid maternity leave or paid adoption leave an employer child care benefit?

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Paid maternity and adoption leave are considered separate benefits from child care. Many employers in the United States are required to provide paid maternity or adoption leave for their employees. 

Are employer child care benefits considered taxable income?

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In the United States, the first $5,000 of employer child care assistance is not considered taxable income. Benefits over $5,000 are reported as taxable income. 

Will an employer pay for a family member to care for my children?

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Individual employers may offer some type of assistance for employees that allow a family member to provide child care and receive reimbursement. It is important to check with your human resources department about whether this specific benefit is available through your plan. 

Do employer child care benefits include school tuition?

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Employer child care benefits often include preschool and pre-K tuition, but may not include private elementary school tuition.

Explore solutions for your employees

Family care benefits have never been more important. See how Bright Horizons can support your team.

Bright Horizons is a United States–based child-care provider and is the largest provider of employer-sponsored child care. Employees looking to become a child care teacher are offered the opportunity to earn an early education degree for free as part of their corporate benefits. Search by zip to find a child care center near you. Bright Horizons Global Headquarters are in Newton, Massachusetts, USA.