Federal Tax, Tax

Employer-Provided CTC Benefits

A recent Government Accountability Office (GAO) report confirms that the Employer-Provided Child Tax Credit can financially benefit employers and employees. The statutorily mandated review drilled down on several subjects, including the tax implications for employer-provided child care, characteristics of employers claiming the credit, challenges employers face in offering it, and benefits eligible employees receive. Overall, the GAO found that the credit “can save employers with eligible expenses more in taxes than using a deduction alone.” And employees can save by excluding up to $5,000 in child care benefits from their taxable wages. Read the full report. Questions? Contact Cg Tax, Audit & Advisory. © 2022