FAQs About Employer-Sponsored Childcare Programs

How long does it take to create and open a childcare program for a business?

The typical development period for an employer-sponsored childcare program is 16-24 months.

What are the benefits of providing childcare to employees? 

Childcare is at the top of every parent’s priority list. By providing your employees with a safe and reliable option for childcare each day, you alleviate them of one of their most pressing concerns. Employers benefit from an increased ability to attract and retain top-tier employees, increased productivity at work, reduced absenteeism and improved employee morale.

Any tax deductions or subsidies for providing childcare to employees? 

Yes, employers can use IRS Form 8882 to apply for a tax credit for employer-provided childcare facilities and services.  The credit is 25% of the qualified childcare facility expenditures incurred during the tax year, with a maximum of $150,000 per tax year.

Can or should a business offer childcare to part-time employees? 

Employers have ability to determine which employees they would like to have access to the program.  Many employers elected to have a tiered enrollment policy that offers full-time employees priority access, but does not exclude part-time employees from enrolling their children in the program.  A full Employee Needs Assessment Survey (ENAS) and analysis helps us customize the best structured program for an employer’s needs.

Is employer-sponsored childcare becoming more popular? 

The overall percentage of employers providing childcare to their employees has been relatively stable.  However, COVID-19 has completely upended the childcare industry and employees, more than ever, are being challenged finding childcare solutions to fit their needs.  According to HR Executive, working moms are in particular continue to struggle to managing all of the work / life demands being put on them.  Given the already limited supply of infant and toddler spaces in the marketplace, the post-COVID supply of infant and toddler spaces will be much less and may force more employers to seek solutions to support their employees’ childcare needs.

Can I design an employer-sponsored childcare program for my own business? 

Like most industries, childcare, specifically early childhood education, is a specialized industry.  While some employers may attempt to develop their own program, they typically lack the depth of resources and knowledge to structure a balanced program that meets their employee’s needs while balancing the financial operating costs.  Endeavor is able to supply the knowledge, skill and resources to develop the most efficient and customized childcare solution for employers.

Can you retrofit an existing space and turn it into a childcare center? 

Yes. Many companies have used existing spaces within their building to house a childcare program. This is a great option that saves on costs and allows employees to see their kids whenever they want. Alternatively, some companies choose to have the childcare space separate from the main company building, but close enough so that it is still convenient for employees.

Does a business’s employer-provided childcare facility also need to be a “school”? 

No. Most employer-sponsored childcare programs operate as childcare facilities. However, we are able to implement a fully accredited education program, as well. This depends on the needs of your company and employees.