Business Insider recently spoke with Torie Barry, a partner in Bennett Thrasher’s Tax practice, about ways companies can benefit from providing their employees with childcare options during the coronavirus pandemic. She explained how offering this service is not only a great retention tool as it shows a company is willing to invest in its employees, but it also comes with tax benefits.
“Some of the incentives that apply to childcare are not very well known in the tax world,” Barry explains. “Employers can provide the dependent care subsidy incentive to their employees. For the most part, it’s tax-free to the employees, and it’s something the employer can be eligible for either a deduction or a tax credit on, so it’s a no-brainer to the employer.”
While dependent upon the state in which a company is based, Barry added that additional incentives are available for in-house childcare services. She says, “When you have an in-house program, you’re not paying for the subsidy, you’re paying for the cost of the childcare itself and to run a facility. That same credit applies, both for federal and for the state.”
Business Insider subscribers can click here to read the article.
About Business Insider
Insider Inc. is publisher of Business Insider, Insider and ten international editions of Business Insider. Business Insider, the largest business news site in the US and one of the fastest-growing news brands in the world, was launched in 2007. Business Insider pioneered digital-native business news coverage that is real-time, social and mobile at its core. The site’s desirable audience is the next generation of business leaders. Tech Insider was launched in July 2015, and Insider, the company’s first lifestyle brand, launched in 2016.