Help Your Employees Pay for Childcare, And Get Money Back
Kenstone helps companies contribute to employees’ childcare costs, while unlocking federal and state tax credits that significantly reduce the company’s net cost.
Support your team. Strengthen retention. Improve recruiting.
And don’t leave tax dollars on the table.
What You Need To Know
01
The Problem
Childcare is one of the biggest financial burdens for working families.
Employers want to help, but:
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It feels expensive
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The tax rules are confusing
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Compliance is complicated
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HR teams don’t have time
So most companies do nothing, missing out on a powerful retention benefit and valuable tax credits.
02
What Is the Childcare Tax Credit?
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A government-backed incentive for employers to support childcare
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Employers pay for childcare, then receive money back through federal and state tax credits
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Credits exist for a wide range of childcare providers: licensed daycares, preschools, after-school programs, and day camps
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Covers children from birth through about age 13
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How Much Money Can Employers Get Back?
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Small businesses: Up to 50% of costs (capped at $600K)
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Large businesses: Up to 40% of costs (capped at $500K)
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NY State: Additional refundable credit of up to 50%
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Remaining costs can often be deducted as well
04
Why This Is a Smart Business Move
Increase Retention: Childcare support directly reduces employee stress and turnover.
Improve Recruiting: Family-friendly benefits are a competitive differentiator.
Reduce Absenteeism: Reliable childcare leads to fewer missed workdays.
Strengthen Employer Brand: Show that you invest in your people.
Capture Tax Savings: Many employers qualify for substantial credits tied to childcare assistance.
This isn’t just a benefit, it’s a financial strategy.
How It Works
01
Employer Contribution
Decide how much you want to contribute toward employees’ childcare.
02
Kenstone Manages Everything
We handle: Provider verification, Direct payments, Compliance requirements, Payroll coordination, Documentation and reporting
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You Claim the Credits
Kenstone prepares the reporting needed to claim all eligible federal and state tax credits.
You support your workforce. We handle the complexity. You recover a meaningful portion of the cost.