For parents who must balance work and family life, the search for childcare for their children aged two months to three years appears to be a real obstacle course. The Absolute Human Resources working group explains how companies can make life easier for their employees in this area.
More and more companies are reserving places in crèches for the children of their employees.. This is a benefit particularly appreciated by employees, but which is subject to a legal framework. What is a business cradle ? These are nursery places partly financed by the employer. These are reserved for the children of its employees. In return, the company benefits from tax advantages. Companies subject to corporate tax or income tax can benefit from it., professional civil companies as well as public establishments and associations subject to corporate tax.
What assistance does the employer benefit from? ?
The employer is entitled to various aids. First of all, the family tax credit, which allows 50% of expenses linked to the reservation of cradles in nurseries to be deducted for employees. Ensuite, the company's financial participation is deductible at 25% from corporate tax. The remainder payable by the company therefore amounts to 25% of the initial price of the place in the crèche.. otherwise, companies creating or reserving a crèche for their employees benefit, as part of the childhood business contract system, a subsidy of 55% of the sums committed by the company each year.
What are the benefits for the employer and the employee? ?
For the employer, the most important thing is that it builds employee loyalty and reduces turnover, absenteeism and lateness, which leads to an increase in yield and productivity. otherwise, the tax system is really advantageous and allows the employer to invest in a crèche at a lower cost. Finally, it thus develops an image of the socially responsible company. The employee, on the other hand, no longer has the mental burden of caring for their child, which contributes to their well-being at work and their performance, with a better work-life balance. And he benefits from the tax credit for childcare expenses.
Is this a benefit in kind? ?
Yes, if and only if the employer provides financial assistance to its employees for their childcare costs in the form of an employment service check or by payment of a sum of money. Be careful though, because there is a maximum ceiling per employee of 2,301 euros per year on January 1, 2023. In case of excess, the excess fraction will be subject to social security contributions, taxes and withholding tax.
