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Subsidized/Reimbursed Child Care or Child Care Referral

Employers who reimburse or subsidize employees’ child care pay all or part of approved arrangements and/ or reserve slots at particular facilities for employees’ children. Through child care referral, employers offer resources to parents to help them find child care in the area.

Benefits to Employers

  • Increases retention, reducing turnover costs
  • Reduces employee tardiness and absenteeism
  • Increases employment of women
  • Increases employee loyalty

Benefits to Children

  • Improves overall health
  • Improves education

Benefits to Parents/Families

  • Improves family economic security
  • Provides an option for summer care for school-aged children

Child care can be subsidized in a number of ways. Examples include:

  • Subsidizing the cost of care at an on-site center.
  • Paying membership fees for an online emergency or back-up care service.
  • Contributing to employees’ dependent care reimbursement accounts.
  • Establishing relationships with child care providers and offering a discount to employees who use providers from the network.

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