What Your Company Should Know About Workplace Childcare
It has always been a challenge for parents to find a balance between work and home. In an era when most parents have full-time jobs, companies that offer workplace childcare have an advantage. These companies can attract top talent, and that talent pool can focus on doing their job rather than worrying about how to take care of their children. While it is an added expense on the bottom line, and there are numerous factors to consider, offering this benefit is well worth the effort it requires.
Benefits of Workplace Childcare
Workplace childcare significantly reduces rates of absenteeism. It allows parents to check-in on their children or enjoy a power lunch with them during breaks. It means that parents only have to drive to work and go home at the end of the day instead of to the nearest daycare center, which may be miles away. Having children nearby also helps reduce anxiety and stress for parents, which in turn helps them remain focused on their jobs throughout the day.
The benefits don't end there. Companies that offer on-site childcare have significantly lower turnover and higher employee morale. When it comes to corporate reputation, your clients and prospective clients will notice that you take care of your team, and in turn, this will boost your company's reputation within your industry and the community. This is like putting rocket fuel on the bottom line, and it can generate returns that far exceed the costs and challenges associated with establishing an on-site childcare program.
The Benefits of Partnerships
There are mountains of regulations that govern the operation of a workplace childcare facility. To maintain regulatory compliance requires specific skills and knowledge of everything from health codes and building codes, to licensures and insurance. It's a lot for a company to take on, but there is an easier way.
Establishing partnerships with locally established childcare providers can help your company quickly establish a childcare program without having to take on all of the logistical responsibilities. This can expedite the process, reduce your costs, and ensure that the program protects the safety and welfare of your employee's children. This benefits everyone involved, and in many cases, it makes it possible to offer childcare services at a considerable discount.
To Subsidize or Offer for Free?
One of the first questions company officers ask about workplace childcare is, "Who is going to pay for this?" There is no one size fits all answer, and there is no right or wrong answer. Many employers offer it as a fully subsidized benefit to their employees. Others offer the service at a reduced cost. If your company chooses to subsidize any portion of the cost, this expense is fully deductible at tax time.
If you choose to require employees to pay for the benefit, you will want to help them establish Dependent Care Flexible Spending Accounts (DCFSA's). They can use this to cover the cost of childcare until the child is 13, or if the child has mental/physical disabilities that require continued care. Daycare expenses are not eligible for reimbursement under FSA's or HSA's. Alternatively, employees can opt to use the childcare tax credit.
Contact Greenlink Payroll at (480) 385-2525 for more information about workplace childcare. Our team will answer your questions and help you determine the most effective methods for offering this popular benefit to your employees.