Employee Tax Benefits
Employee-based Child Care Options
Tax-Free Payments for Child Care
Businesses can set up Dependent Care Assistance Plans, which are flexible spending accounts, that enable employees to set aside up to $5,000 per year in pre-tax salary for child care expenses.
Federal Child and Dependent Care Tax Credit (CDCTC)
When employers send employees their W-2 at tax time, remind them if they have children for whom they pay for child care services, they are able to claim the CDCTC.