Childcare for small and medium-sized enterprises

Reliable childcare is the key issue for parents who want to reconcile work and family life. After all, parents can only really work if childcare is guaranteed.

Since August 1, 2013, every child over the age of one has had a legal right to a childcare place. Even though the expansion of public childcare services is being driven forward by local authorities, the federal states and the federal government and the supply is increasing every year, there is still a discrepancy between the actual childcare rates and the childcare needs of families (as of March 2016). Not all parents who wish to do so find a childcare place for their child. Once a place has been found, this does not mean that the childcare facility also offers the required care times and the desired quality.

Opportunities and benefits of operational support measures

As an employer, you have the opportunity to support your employees in finding the right and suitable childcare for their children. It doesn't always have to be the company's own childcare center , there are also numerous low-threshold options for help and support.

In the end, it is not only the parents who benefit from good and reliable childcare, but also you as an employer. Here are a few arguments:

• Promoting an earlier return from parental leave: secure childcare from 1 year and earlier enables parents - especially mothers - to take a career break that is not too long. As a result, knowledge and expertise are retained and the return to work can take place quickly and smoothly.

• Less absenteeism and stress: needs-based childcare reduces absenteeism among parents, as they are less likely to have to stay at home when the caregiver or children are ill or when daycare and school are closed. With childcare solutions that are geared towards your company's working and business hours, employees can concentrate better on their professional activities.

• Increased performance, motivation and loyalty: Childcare problems have a negative impact on private life and professional life. If you offer your employees relief in this area, you will keep their minds free and promote their loyalty to the company - and thus their willingness to work for your company.

• Increased willingness and ability to work more flexibly: Any support for childcare contributes to employees' commitment and willingness to work flexibly. If the company has special time requirements, e.g. at weekends or evenings, targeted childcare solutions often make it possible for parents to work.

Childcare support options - an overview

The following pages provide an overview of the numerous options available to companies to support their employees in solving the problem of childcare. They range from quick and easy-to-implement financial support to a company kindergarten.

As an employer, you can support your employees with measures in the following areas:

• Financial support: childcare allowance
• Solutions for regular childcare needs: company kindergarten, company-supported daycare, places in existing facilities - these solutions can be offered alone or in cooperation with others
• Solutions for irregular needs and emergencies: Backup care, in-house care, vacation care,
• Advice and placement: Advice on childcare solutions and placement of au pairs, babysitters, emergency caregivers, etc. by professional family service providers

All measures and options are presented in detail with their advantages and disadvantages in the sub-chapters of this page.

Law & Taxes - What needs to be considered?

The range of measures and options addressed entail different legal and tax frameworks and requirements. Accordingly, the individual sub-chapters deal specifically with these.

The following questions should be clarified for each measure offered:

1. Can the employer claim his expenses as tax-reducing business expenses?
2. If the employees use the measures: Is this use credited to their salary as a non-cash benefit and therefore fully subject to social security contributions and tax?
3. Can employees' expenditure on childcare be reduced - for example through tax relief or public participation in the costs?
4. Is the measure subject to co-determination? Does the works council have to be informed and involved?
5. What legal regulations and requirements must be observed with regard to childcare itself?

The legal basis for all child and youth welfare in Germany, which includes childcare, is the Eighth Book of the German Social Code (SGB VIII). This can be seen as the framework for all childcare measures.