Tax-Smart Child Care Benefits for Employers

Helping employees access affordable child care doesn’t just make good business sense — it can also offer valuable tax savings for your organization.

On this page, you’ll find simple, actionable guides to two key options:

• How to claim the Employer-Provided Child Care Tax Credit for supporting your employees’ child care needs, and

• How to set up a Dependent Care Assistance Plan (DCAP) to allow employees to pay for child care expenses with pre-tax dollars.

Whether you’re a sole proprietor, small business, or large, these tools can help you offer meaningful benefits while maximizing tax advantages.