KinderCare
It’s more than daycare, it’s KinderCare!
At KinderCare early learning programs put education first, even for the tiniest babies, because every adorable coo, crawl, and creation is proof that your little one is ready to build confidence for life.
NC State has established a new partnership with KinderCare. KinderCare will be the new provider of our child care subsidy benefit. The tuition subsidy benefit will be available for KinderCare on March 1, 2025. Families can enroll or transition their children to KinderCare before that date. However, they won’t receive a tuition subsidy until March 1, 2025.
To determine openings at a KinderCare center, start by viewing the 36 KinderCare centers within 30 miles of NC State. Select the center you’re interested in and click its link on the left side of the page. On the center’s page, click “Tuition and Openings” to see program availability on the right side of the page. If the center has availability, contact them to set up a tour. Alternatively, you can use the NC State KinderCare webpage to search for locations within 30 miles of NC State. Availability changes frequently, so it’s important to check regularly.
Child Care Tuition Subsidy Benefit
The subsidy percentage NC State provides will remain the same. Eligible NC State employees whose household income is greater than or equal to $70,000 annually will receive an 11% subsidy based on tuition rates at KinderCare centers. Eligible employees whose household income is less than $70,000 annually will receive a 35% subsidy based on tuition rates at KinderCare centers. In addition to the subsidy, eligible NC State families will receive a 10% tuition discount from KinderCare if their application is approved at a KinderCare location within 30 miles of NC State. The tuition discount and the subsidy equate to a 21% tuition reduction for employees whose household income is greater than or equal to $70,000 annually and a 45% tuition reduction for employees whose household income is less than $70,000 annually.
How to Apply and/or Receive These Benefits?
More information coming soon.
Eligibility
- Full-time Faculty, Staff, and PostDoc Employees are eligible for this benefit. An employee’s classification must be EHRA, SHRA, EPS or PostDoc and the employee must be at .75FTE or greater equivalency on a 9-month or greater recurring contract basis.
- Students, including graduate students, are not eligible for this benefit but may participate in our discount providers program.
Rates
Tuition rates may vary at each KinderCare location. Eligible NC State employees whose household income is greater than or equal to $70,000 annually will receive an 11% subsidy based on tuition rates at KinderCare centers. Eligible employees whose household income is less than $70,000 annually will receive a 35% subsidy based on tuition rates at KinderCare centers. In addition to the subsidy, eligible NC State families will receive a 10% tuition discount from KinderCare if their application is approved at a KinderCare location within 30 miles of NC State. The tuition discount and the subsidy equate to a 21% tuition reduction for employees whose household income is greater than or equal to $70,000 annually and a 45% tuition reduction for employees whose household income is less than $70,000 annually.
Taxation
The Internal Revenue Service (IRS) limits employer-provided, tax-free childcare benefits to $5,000 per family per year. If you file your taxes as “Married Filing Separately,” you and your spouse may each claim $2,500. NC State University provides two types of pre-tax childcare benefits, both of which are subject to the $5,000 total:
- A Sliding-Scale subsidy for all program participants (at nine Triangle area Bright Horizon locations), based on family income;
- A voluntary Dependent Care Flexible Spending Account (FSA) program allows employees to be reimbursed with pre-tax payroll contributions for qualified child and/or dependent adult care expenses. Because the money is deducted from your pay before taxes are calculated, and because it’s not taxed when it is reimbursed, this money becomes tax-free income. For example, if someone would otherwise pay 30% in taxes (including federal income and FICA taxes) but they contribute $5,000 a year to a dependent care FSA, they could possibly avoid paying $1,500 in taxes.
The $5,000 annual maximum includes all sources, such as a previous employer within the same calendar year or the employer of your child’s other parent. The $5,000 is a per-family (not per-child) maximum.
Take the time to review and understand the advantages and tax consequences of the University’s employer-provided childcare benefits. If you receive over $5,000 in employer-sponsored childcare benefits, then you will be charged taxes on the amount in excess of the limit.