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Child Care is a Community Concern

Caring Child

How Can A Business Be Part of the Change?

  • Initiating discussions with employees about child care or joining the board of community-based child care organizations.

  • Financial support to provide child care services for employees that may be deductible as ordinary business expenses under the Internal Revenue Code Section 162 to reduce absenteeism and turnover, aid in recruitment, and increase workforce productivity. For more information, consult your tax advisor.

  • Improve access to child care for employees by contracting with Springboard Child Care, its affiliates or other qualified child care organizations to "hold" child care services for your employees.

  • Learning more about Colorado's Child Care Contribution Tax Credit (CCTC); the after-tax cost of a CCTC $30,000 donation to Springboard Child Care and other non-profit child care organizations results in a net cost to the taxpayer of $8,361 for those taxpayers in the 35% federal income tax bracket

  • Utilize available federal tax incentives for employees with child care costs:

    • Facilitate employee contributions to your cafeteria plan that includes a Dependent Care Assistance Plan (DCAP). DCAPs allow your employee to set aside tax-deferred funds for child care costs through a payroll deduction. The account administrator reimburses the employee for household childcare costs up to a maximum of $5,000 per year. See IRS Publication 15-B Employer's Tax Guide to Fringe Benefits, Page 3 for more information or contact your tax advisor. 

    • ​Contribute as an employer to an employees' Dependent Care Flexible Spending Account (FSA) for child care costs to the extent that the combined employer and employee contribution does not exceed $5,000. Note: Neither the employer nor the employee pay payroll taxed on the salary amount that has been set aside for child care reimbursement.​

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