Kindergarten allowance from the employer

More and more employers are paying their employees one financial grant for the costs of kindergarten or child care. For parents and especially single parents, this is of course a great advantage that should be used. However, one should deal with it in advance, so that this extra service will not be a disadvantage for the next tax return. In the following guide we present when and for whom such a grant is worthwhile and what needs to be considered.

Why do many companies offer a kindergarten grant from the employer?

Many workers have a hard time, Career and family to agree with each other. Therefore, more and more employers are offering flexible working time models, so that parents can work as seamlessly as possible childcare can agree. Companies have long recognized that employees have this aspect particularly important is and must corresponding offers offer to be able to attract and retain good employees. It is not without reason that the kindergarten subsidy has become widespread in many companies. This means that the employer pays the costs. But there is also here for parents some things to consider.

A kindergarten allowance from the employer is only then for employees social security and tax free, if this one Addition to normal salary represents. If, on the other hand, it is noted in the employment contract or part of the previous salary is converted into one Childcare allowance converted, this no longer applies – then you have to look after yourself Take care of taxation. Furthermore, this benefit may only apply to children who are still not compulsory for school are. The employer himself determines the amount of the subsidy.

What role does the type of childcare play??

A kindergarten subsidy from the employer can take place in different ways: It can be on kind relate, but also a cash benefit his. There are also companies that have one in-house day care center offer what is of course particularly cheap for employees. Get finance with the grant also Childcare costs, Schulkindergärten or for childminders. However, if the child is cared for at home and the employer pays a subsidy, then this is always taxable.

When can the costs for a kindergarten allowance be deducted from the tax??

Expenditures for the care of the child can be taxed as parents additional expenses assert. Here, however, there is a maximum upper limit of two thirds of total expenses – up to a maximum of 4,000 euros per child yearly. There are also two important prerequisites that must be fulfilled in every case: There must be one Official bill be issued and the care costs must be on the Account of the supervisor be paid in – cash payments are not taken into account in this case.

When the children are looked after by the grandparents

If the grandparents look after the children during the day, parents, if they are employed, can claim the costs incurred for this. The one already mentioned also applies here Two-thirds limit – and there must be one Written invoice become. Furthermore, the support must be as with a strange childminder. If the grandparents provide childcare free of charge, no amount can be claimed for tax purposes.

In this context, the Travel expenses taken into account become. If grandparents look after their grandchildren, the travel expenses incurred should be charged to the parents. These expenses can be seen in the next tax return Childcare costs state – and this also applies if the grandparents are not paid for by their parents.

It doesn’t matter which parent pays

For the employer, whether the mother or father pays for the child’s childcare costs not matter. This means that even if the mother receives grants from the employer, although the father pays the costs of the kindergarten out of his own pocket, the employer can help his employees Pay grants, the completely exempt from income tax are.

Another example is when the parent of a child who is not yet attending school, not married to each other are. The costs of the kindergarten are borne by the mother, while the employer grants the father a subsidy. To do this neither taxes nor social security contributions be paid.

But be careful: services for the placement of a Supervision by third parties must be taxed. A grant from the employer to a daycare center or preschool cannot be considered as an employee pecuniary advantage to be counted on.

For everyone adopted and biological children such as Foster children and stepchildren, but also for grandson, which have been included in the household by the employee, the childcare costs can be reimbursed by the employer without tax. However, costs for the care of a partner’s child are not included not your own is.

Workers receive grants which not immediately for caring for a child are used, the also expires Social security and wage tax exemption. Examples of this are grants for the child’s journey from the home to the daycare center. Subsidies for teaching the child are also subject to tax.

What are the benefits of a kindergarten grant from the employer??

When an employer provides a childcare allowance, there are benefits for both the company and the parents. Basically there is no legal upper limit for the amount of the financial allowance for children not attending school. In addition, of course, the company does not have to pay the full cost and is not obliged to provide the grant every employer offer.

Because the kindergarten allowance goes beyond that no organizational effort for an employer, it can also be brought in spontaneously and, for example, as attractive bonus to offer. Such a subsidy naturally relieves the burden enormously – above all single parent benefit greatly as childcare often incurs significant costs. The offer of a kindergarten grant also increases the Attractiveness of an employer: It becomes more interesting for employees: it also offers flexible working hours he has a good chance of keeping his employees in the long term.

Which childcare facilities are subsidized by the employer

So that parents receive a tax-free allowance for the cost of childcare, it doesn’t matter whether the child is in one in-house or one external kindergarten is housed. It is only important that the facility is suitable for the child’s care explicitly about a day care center, a day care center, a school kindergarten, a day nursery or another comparable facility is. Also the care by childminders, the accommodation in one boarding school or in one Full day care are eligible. Important: If the childminder works in her own household and looks after the child at home, this option is not available.

Should the employer take the ride costs between home and kindergarten, these grants are no longer tax exempt. The same applies to services for teaching the child.

The legislator therefore prescribes that a kindergarten allowance from the employer is exempt from taxation in accordance with Section 3 No. 33 EStG, provided that the conditions mentioned are met. But what about school-age children who are older than six years? Subsidies are also possible here. If a child is already compulsory at school, a financial subsidy is subject to social security and taxable, but the employer can state this fully as an operating expense – the same applies to income tax and social security contributions.

Meal money can also be deducted from tax?

Food allowance can be fundamentally not applicable for tax purposes be made. Therefore, when invoicing a daycare center or other childcare facility, care should be taken to ensure that childcare costs are billed independently.

The in-house kindergarten is also tax-deductible?

For companies that unite their employees in-house kindergarten make available, a special law applies: According to § 3 Zi 13 EstG, this is a tax-free social facility – there are therefore no social security contributions or taxes for the employees.

There are upper limits per year for a kindergarten allowance from the employer?

There are no limits. Shutterstock.com / Fh Photo

In any case, the answer to this question is: No. In principle, there are legislators no requirements or restrictions on the amount of a subsidy for childcare. However, the actual costs for the kindergarten or a kindergarten play a role. So it may be the case that married workers receive the subsidy for the kindergarten, although the other partner – who is not employed by the respective company – pays the costs for the kindergarten. If both partners work in the same company, the costs for caring for the child can only be met once tax free be reimbursed by the employer.

This shows that there is a lot to consider when employers offer a subsidy for kindergarten. Basically, of course, this is one attractive performance, that makes a company attractive to employees – nevertheless, that should always be in advance For and against be weighed before you notice them. If no kindergarten grants are offered, there is also the option of home office, work from home.