Childcare Tax Break Breakdown - Episode 9: Are Bigger Childcare Stipends Always Better? Our Research Says No + Upcoming Bills in Pennsylvania and Ohio

Episode 9: Are Bigger Childcare Stipends Always Better? Our Research Says No + Upcoming Bills in Pennsylvania and Ohio

05/30/24 • 24 min

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Ever wondered how effective childcare tax credits really are for employers and employees? Join us as we uncover the intricacies of Pennsylvania's House Bill 1958, which offers a 30% tax credit for employers contributing to childcare costs. Doug shares insights from his upcoming father-son trip to Dollywood before we dive into the pressing topic of childcare stipends and their impact. Through our analysis, we'll reveal why larger stipends don't always equate to better outcomes and how you can maximize the efficiency of these benefits to significantly reduce employee turnover.
Stick around as we discuss the optimal monthly stipend range of (listen to find out), showcasing how this sweet spot can provide the best return on investment for businesses. We'll also address the broader implications of balancing turnover rates with employee satisfaction and absenteeism, offering a holistic approach to workforce management. Plus, we're celebrating some exciting milestones with you, including surpassing 202 downloads and 601 LinkedIn newsletter subscribers. To wrap things up, we share a fun fact about our soccer backgrounds and wish you all a fantastic Thursday.
Tune in for these insights and more!

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Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks!
Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.

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Previous Episode

Episode 8: Alabama's HB 358 Tax Breaks, Why Childcare "Surveys" Don't Work, and North Carolina's "National Day Without Childcare"

As we navigate the heartfelt observances of Mother's Day and the National Day Without Child Care, we uncover the stark realities child care providers face every single day. From the grueling hours and low compensation to the burdensome costs of operations, our latest episode offers an eye-opening discussion on the dire need for systemic support in this crucial sector. The spotlight turns to Alabama's groundbreaking HB 358; a piece of legislation poised to make a considerable difference for child care through incentivized tax breaks. And we don't stop there – we also hint at the potential shortcomings of employer surveys in understanding the true child care needs of their workforce, a debate that's sure to capture your interest in episodes to come.
For those fascinated by the nitty-gritty of policy impact, our conversation moves into designing employer child care benefit programs that truly serve the needs of workers earning under $30 an hour. Tapping into the lived experiences of employees, we scrutinize how the over-reliance on surveys can lead to critical oversights, all while stressing the strategic importance of child care benefits in talent acquisition. Moreover, we go through Alabama's HB 358 with its tax break initiative for employers, laying out a roadmap for how targeted programs could boost workforce participation and improve the child care landscape in Alabama and beyond. Join us for this exploration of how legislation and employer action can intersect to support our communities' caregivers and working parents alike.

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Next Episode

Episode 10: $150K to $2M Childcare Tax Credit Proposal – Too Good to Be True?

On our 10th episode of the Childcare Tax Break Breakdown we discuss a potential new bill introduced at the federal level, the Child Care for American Families Act, H.R. 8540. The bill aims to enhance the Employer Child Care Tax Credit, increasing the general percentage for qualified childcare expenditures to 40%. For small businesses with 500 or fewer employees, the bill proposes a 50% credit on expenditures. The bill also sets a cap at 60% of expenditures for rural and low-income areas, incentivizing employers to offer more childcare services. Additionally, the bill suggests increasing the annual cap on qualified expenses to $2 million and the total credit to $1.2 million. Businesses could claim the credit by pooling resources for childcare facilities, encouraging collaboration among small businesses. The bill's potential impact could significantly reduce the cost of childcare benefits programs for employers, making it more accessible and affordable. Greg and Doug highlight the importance of tracking this bill and other similar initiatives across states to support childcare affordability and accessibility.

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Childcare Tax Break Breakdown - Episode 9: Are Bigger Childcare Stipends Always Better? Our Research Says No + Upcoming Bills in Pennsylvania and Ohio

Transcript

Speaker 100:00:02.104

Welcome to the Tax Break Breakdown with your hosts , greg and Doug . Sit back and relax while they review current and upcoming child care tax credit programs employers can take advantage of . Now on to the show .

Speaker 200:00:19.541

Welcome everybody to Episode 9 of the Child Care Tax Break Breakdown with your hosts , greg and Doug . Howdy , Doug , how ar