On-Site Child Care
What
Child care provided at the place of work for parents through a corporate partnership or privately run. Examples of companies that offer privately or company run onsite child care programs include Google, Patagonia, Trust Automation, Promega, Dartmouth Hospital, and Lakeshore.
Benefits
Consistent child care saves employers money. On average, parents will miss 4.3 days over a six-month period due to child care needs. (6) It is estimated that breakdowns in child care, which lead to employee absences, cost U.S. businesses $3 billion annually. (6) A survey by the Early Care & Learning Council reports that when companies provide on-site child care, employee absences decrease by up to 30%, and job turnover can decline by as much as 60%(7). Though it can be a costly benefit, the cost can be recouped every year through retention.
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San Luis Obispo Child Care Planning Council serves as a forum to address child care planning and the needs of families in the community for all types of child care, both subsidized and unsubsidized. The Council welcomes conversations from businesses looking to partner with local established child care providers for on-site child care or other alternative child care options.
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The Child Care Resource Connection with the Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) is a local resource that assists in coordinating and helping generate accessible quality, affordable child care in SLO County. CAPSLO Child Care Resource Connection also provides referrals for families seeking child care options.
Vouchers, Discounts, Sponsored Slots, or Referrals
What
Partnering with a high-quality child care provider to provide a tuition discount and/or priority enrollment for their staff. Whether it is paying a yearly 'membership' to reserve a number of spots for your employees or becoming a 'preferred partner' by committing to send employees to specific programs in trade for a discounted tuition.
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The Child Care Resource Connection (CCRC) can connect employees with a list of child care programs that may be able to meet their needs.
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CCRC provides child care subsidies to help pay for child care for enrolled, income eligible children. Some child care programs are funded to provide services for low to no cost for eligible families. Find a list of those programs here.
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Companies may offer child care vouchers or subsidies for parents, or companies may invest in a child care assistance fund for employees.
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Providing human resources or other administrative staff with information necessary to assist parents with referrals to reliable resources may help reduce stress and time away from work. See the Resource Guide.
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Services can be provided through a corporate benefits partnership with high-quality child care centers. KinderCare and Bright Horizons are two providers that have established corporate models.
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The CCRC can help connect businesses with SLO County child care programs that would be interested in partnerships.
Benefits
This may be the most cost-effective solution for businesses wanting to support parents.
Subsidies, Stipends, and/or Reimbursements
What
Employers can contribute a certain percentage to the cost of each employee's child care without the subsidy being added to the employee’s taxable income. Child care can be subsidized in a number of ways, examples include:
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Subsidize the cost of care at an on-site center.
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Pay membership fees for an online emergency or back-up care service.
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Contribute to employees’ dependent care reimbursement accounts.
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The use of Dependent Care Assistance Programs to allow employers to fund a portion of an employee’s child care expenses.
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Establish relationships with child care providers and offer a discount to employees who use providers from the network.
Benefits
Employers considering this approach should explore potential tax benefits, with their tax advisor, as the amount of subsidy provided to employees may be deductible.
Child Care Benefit Plans and Tax Strategies
What
Utilizing potentially tax-saving strategies to help employers support working parents and affordable child care. Subject to CPA/benefits provider confirmation, examples may include:
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“Cafeteria Plans,” which offer a menu of benefits tailored to meet the needs of employees, and which can reduce income tax withholding, FICA, and unemployment taxes;
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Allowing employees to set aside up to $5,000 in pre-tax income for child care expenses;
Benefits
Wisely investing in employee support programs early on can reduce the costs of catching up with your competitor's child care programs and benefits down-the-road.
Backup or Emergency Care
What
Backup or emergency care programs supplement a regular child care program and can be implemented during times when regular providers are sick, unavailable, or during unexpected school closings. Arranging these programs in advance, or having options available for employees during these non-standard circumstances can reduce stress and anxiety for all involved.
Third-party providers such as Bright Horizons and Care@Work, among others, sometimes offer these add-on or a-la-cart services. In some cases, these third-party providers offer 24/7 online, mobile app, and staffed call center access. In the event backup or emergency care is needed, they work to provide employers with a national network of vetted child care center options and in-home caregivers. It is important to understand the volume of backup and emergency options in your specific geographic region, as providers sometimes have different levels of support in different cities and regions.
Benefits
Allows employees to continue their regularly scheduled work when something unexpected comes up. Providing backup or emergency care can help ensure that unexpected disruptions don’t negatively impact the workplace. Backup or emergency care can also benefit business continuity, employee recruitment, and retention, as well as demonstrate high family value.
