Subsidized / Reimbursed Child Care or Referral
Employers who reimburse or subsidize employees child care - sometimes referred to as a child care scholarship - 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 EmployersFootnote # 1
- Increases retention, reducing turnover costs
- Reduces employee tardiness and absenteeism
Benefits to ChildrenFootnote # 2
- Improves overall health
- Improves education
Benefits to Parents/FamiliesFootnote # 3
- Improves family economic security
Research or Recommendations from National Organizations
Subsidized/Reimbursed Care
The average yearly cost for infant care in North Carolina is $9,480 per childFootnote # 4, and the average yearly cost of care for a four-year-old is $8,113 per child. That means the annual cost of care is more than the annual cost of tuition for an in-state public college.
Subsidizing care allows employers to help defray some of these costs. 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; or
- giving vouchers directly to employees to use at preferred child care providers.
Subsidizing care can also support local child care providers by offering them a stable revenue stream, thereby helping the business stay sustainable or even grow.
In 2026, employers providing child care benefits can receive a tax credit of up to 40 percent for qualified expenses up to $500,000 and up to $600,000 for eligible small businesses. Footnote # 5
Child Care Referral
Employers can help employees access care by providing referral services through North Carolina’s Child Care Resource and Referral (CCR&R) network.
CCR&R services can be a cost effective option, because they qualify for the federal tax credit. Employers can contract for educational workshops and/or to support expanded referral services for employees, including:
- educational sessions available at the employer’s site or virtually;
- materials about developmentally appropriate practices and information about the quality rating system;
- individually tailored referral services with vacancy checks;
- reviews for specialized services, such as for families with special needs such as developmental delays;
- medical support; and more.
Case Study
Capitol Broadcasting Company (CBC) is a multifaceted, innovative communications company with strong roots in the Triangle community. Founded in 1937, CBC has grown from a single radio station to a diversified network encompassing broadcasting, new media, real estate, and professional sports.
CBC employs nearly 500 people across its divisions, and its leadership attributes this growth in part to their commitment to their employees, their families, and the community at-large.
“If we take care of our employees and our community, then the community and our employees will take care of the business,” says Pam Genske, Vice President of Human Resources at CBC. “It’s an interlocked partnership, but beyond that, it’s just the right thing to do.”
CBC offers their employees a broad range of family-friendly policies and benefits that aim to support people in every stage of life, including the unique needs of employees with young children.
One such benefit is their Child Care Scholarship program, which provides a stipend of up to $200 per child, per month to assist employees in paying for child care, before- and after-school programs, and even summer camp.
“Child care is getting harder and harder to find and it’s super expensive, especially for two kids,” says Laura Zabinski, Executive Director of CBC’s American Underground. Laura, who has been with CBC for five and a half years, is the mother of a three-year-old and a five-month-old who attend a child care program in Durham. She currently utilizes the Child Care Scholarship benefit for both children, receiving a total of $400 per month towards her family’s child care expenses.
“Having this benefit absolutely helps offset the cost and allows me to show up at work and be fully present. I have the flexibility to be a mom and still be a really hard worker,” Zabinski says. “I feel fully supported in that, and honestly, I think I’ve achieved more in my career since becoming a parent.”
Child care shortages abound in North Carolina, and the average cost of care for one baby is more than the cost of public college tuition. CBC believes that assisting employees in finding and affording high-quality child care is one of the most important things employers can do to help alleviate the stress and financial burden for working parents with young children.
“It’s definitely a highlight for a lot of our employees,” says Gabriela Berrios, CBC’s People Operations Manager.
As Berrios points out, simply having a benefit available isn’t always enough – it’s also important to create an environment where employees actually use it. “We have a diverse team of people who can give real life, relatable examples of using these benefits. Our employees never have to question ‘Am I actually allowed to do this?’”
In 2024, nearly 30 employees used the Child Care Scholarship benefit, which is disbursed as a quarterly check.
CBC’s generous and wide-ranging benefits platform contributes to its solid reputation as an employer, but Genske and Berrios say it goes beyond that. Whether hosting family-friendly events, engaging in local community initiatives, distributing Mother’s Day flowers and hosting Santa pictures, or offering tickets so that employees can take their families to baseball games and concerts, CBC offers many little touches to show people appreciation for the roles they play outside of the organization.
“We want to make sure our employees feel that not only are they being taken care of, but their families are taken care of, as well,” said Berrios.
Research shows that family-friendly workplace policies are invaluable in helping businesses recruit and retain employees, something that is particularly important for CBC, a company that relies heavily on niche talent across many of their divisions, from on-air TV broadcasters to baseball managers.
“Yes, we’re concerned about the bottom line, but all of these things help us achieve our bottom line,” Genske said. “Offering the Child Care Scholarship benefit is not a major lift for us. What would be a heavier lift is trying to replace the great talent that we have on staff. By investing in our people, we feel that we’re actually saving money.”
Genske added that offering family-friendly benefits has also resulted in increased productivity and growth, helping employees have peace of mind and cultivating an environment where the company “has the back” of its people.“
Having the child care scholarship shows me that I can be a parent and work at the same time. They’re supporting both of those worlds,” Zabinski said. “I’m really, really grateful for that and for the opportunity to continue to grow and excel in my career.”
Sample Benefits
- Child Care Scholarship/Stipend
- Paid Time Off
- Health and Wellness Program
- Employee Assistance Program
- Dependent Care Reimbursement
- Tuition Assistance
- Student Loan Assistance