The search for high-quality, affordable child care is a struggle for most families. Parents lack information, have little or no choice in providers, and are often forced to settle for poor quality. Because of this high cost, many families need financial assistance for child care.
Employers have a lot to gain by helping employees find and pay for child care.
According to a 1993 survey, nearly two-thirds of all children under the age of 13 had both parents or their only parent in the labor force. Many employers find that company-sponsored child care programs help eliminate these and other barriers to working effectively. Several options are available for employers to assist employees with their child care expenses, including vendor programs, vouchers, and pre-tax spending accounts. This is a popular option because it offers low start-up costs and no direct management responsibility by the employer. This is a good way to protect against enrollment fluctuations and subsequent overpayments.