Should Companies Cover Their Workers’ Daycare Costs?

Child care expenses can be a significant incentive for workers with young children, as they can be deducted by employers as a business expense. A survey by human resources consulting firm Mercer found that 54 of employers with at least 500 employees do not offer any child care benefits. Some employers are providing child care subsidies during the pandemic, typically as employer-provided spending.

Employers can help employees with childcare through tax credits, benefits, and third-party services. Just 12 of all US workers have access to childcare benefits through their employer, a figure that drops to 6 for part-time or in the lowest-performing jobs. Child care initiatives are supported by employers to assist staff, lower absenteeism, increase retention, and maintain a smooth workflow.

Employer-sponsored child care benefits can help employees find, afford, and navigate care, and improve productivity and retention. Employers should complete Form 8882, Credit for Employer-Provided Child Care Facilities and Services, to claim the credit for qualified child care facilities and services.

Recent BCG research finds that childcare benefits deliver returns of up to 425 of their cost for companies across the US. Employers typically offer an employee about two-thirds of their salary while they are on leave. Flexible work schedules and pooling together to offer quality on-site or local childcare options can lead to more productive and loyal employees.

In conclusion, employer-sponsored child care benefits can help ease the child care burden, support employee well-being, and foster a caring work culture.

What does tuition reimbursement mean on a job application?

Tuition reimbursement is an employment perk that allows employees to receive a portion of their university tuition when they complete it. Employers may also cover other expenses like living, transportation, or book costs. Some employers may pay the entire cost or only provide a partial refund. Tuition reimbursement can be an appealing employment perk, providing a consistent salary and high-quality education without incurring tuition expenses. Employers typically offer assistance for qualifications specific to their industry, such as marketing or public universities.

Some programs specify where the course can be taken. In some cases, working for an agreed amount of time may be necessary before qualifying for reimbursement. To learn more about a company’s program, refer to the employee handbook or speak with a human resources manager.

To qualify for tuition reimbursement, check the employment contract and consult with the employer for any special criteria they may have about eligibility. Some typical conditions for tuition reimbursement include the program of study and discussing alternatives with company management. This helps employees explore a range of eligible courses and benefits.

Why should companies pay for employees education?

Employee training benefits are often misunderstood as a “employee perk” rather than a strategic investment in knowledge. However, these programs can significantly improve a company’s bottom line. Skilled employees are more engaged, confident, and capable of delivering business objectives, especially during disruptive times. Investing in employee training can lead to increased productivity, improved morale, and a higher overall performance. Therefore, it is crucial for organizations to consider the numerous benefits that come with investing in their employees and sponsoring their advanced learning.

Should employers pay for employees training?

In Alberta, employers can make employees take training on their own time if it is mandatory or voluntary. Mandatory training must be compensated at least the minimum wage, while voluntary training is optional and does not require compensation. Employees have the right to refuse unsafe training and can form a union to formalize protection through a collective bargaining agreement. Alberta’s Employment Standard rules do not prevent employers from scheduling training on days off or outside regular work hours, but they must be paid if required to attend training outside of regular work hours.

Is employer provided child care a taxable benefit?

Childcare expenses are regarded as non-taxable benefits if they are provided on-site and directly managed by the employer, provided at minimal cost to all employees, or are provided free of charge and not accessible to the general public.

Is continuing education tax deductible Canada?

Training courses can be deducted as an employment expense if they help maintain, upgrade, or update skills related to your employment. However, they cannot be deducted for personal reasons, unreasonable costs, or if you receive a lasting benefit from the course. If you cannot deduct the cost as an employment expense, you can claim it as tuition, as long as you meet the conditions in Guide P105, Students and Income Tax.

What employee training is required by law in Canada?

The federal government and provinces in Canada mandate general health and safety training for all workers, with some jurisdictions requiring training on emergency procedures like fire prevention and evacuation. Canadian occupational health and safety legislation also includes specific training requirements for harassment and violence. Almost every jurisdiction requires employers to provide training on how to recognize and respond to such incidents. Some jurisdictions limit training requirements to workplace violence, while others only require it for workers who may be exposed to or likely to encounter such violence as part of their work.

Is tuition reimbursement taxable in Canada?

The CRA considers training courses or educational programs as non-taxable if the employer is the primary beneficiary. Employers can claim benefits if they assume the employee will resume employment after completing the course, including tuition fees, books, meals, travel, and accommodation. This includes courses leading to a degree, diploma, or certificate in a field related to the employee’s current or future responsibilities in the employer’s business. This situation is generally non-taxable if the employer can clearly demonstrate that they are the primary beneficiary.

Is continuing education a taxable benefit?

Management and Professional Staff members can share up to four Continuing Education courses with their eligible dependents, based on their eligibility and University of Calgary Continuing Education admission requirements. The combined maximum of courses taken by the staff member and their dependents must not exceed four courses per benefit year (July 1 – June 30). The tuition support benefit for courses taken by a spouse or dependents is considered a taxable benefit, and the student will be contacted for additional information.

In 2023, the dependent will receive a T4A, and CPP and income taxes will be assessed on the additional benefit. Continuing Education will extend a 25 employee discount to the dependent only when the dependent is using the employee’s tuition support benefit. Unused tuition support cannot be carried forward into the next benefit year. There is no coordination of benefits when staff members’ dependents are employed with UCalgary.

Who claims daycare on income tax?

The person with the lower net income (including zero income) generally must claim child care expenses. However, if your spouse or common-law partner has the higher net income and one of the conditions below apply, they can make the claim for child care expenses at line 21400.

The conditions for claiming child care expenses include being enrolled in an educational program offered by a secondary school, college, university, or other designated educational institution, being unable to care for children due to an impairment in physical or mental function, being confined for at least two weeks to a bed or wheelchair, being confined to a prison or similar institution for at least two weeks, or living separate and apart from your spouse or common-law partner at the end of the year and for at least 90 days due to a breakdown of your relationship, but reconciling before March 1 of the following year.

A claim is valid only if your spouse or common-law partner who had the higher income paid those child care expenses and the person with the lower income is a supporting person. If your net incomes are the same, you must agree on which one of you will claim the child care expenses.

Is unpaid training legal in Canada?

Employees must be paid for training if it is necessary to provide skills for their role, such as job shadowing or training on new equipment. Employers must offer minimum wage, overtime pay, and rest entitlements in accordance with the ESC. Training can go unpaid in certain circumstances, such as when an individual acquires a qualification required for hiring, agrees to receive additional training on their own time and at their expense, or is asked to complete a test or training as part of the hiring process. In these cases, training is not considered work time and therefore, employers are not legally required to pay for it.

Is child care benefit considered income?

The ACFB is a non-taxable, refundable benefit that a household may receive even in the absence of provincial income taxes. Furthermore, receipt of the ACFB does not result in a reduction of benefits or funding available under other federal and provincial tax and social programs.