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?

To apply for and receive these benefits, eligible employees must download, complete, and submit the North Carolina State University Child Care Program Eligibility & Annual Income Verification Form provided in this KB Article through HRNow. This document contains a digital signature, digital signatures must be filled out using Adobe software. If you do not have an Adobe subscription please utilize Adobe Reader and the Fill and Sign tool which is free software provided by Adobe. If you prefer to stay in your browser while filling out the form there are Adobe Reader extensions available for both Google Chrome or Microsoft Edge. The Adobe Reader software is available for Windows, Mac, or Chrome OS users. 

To submit the North Carolina State University Child Care Program Eligibility & Annual Income Verification Form,go to HRNow, select “General Benefits Inquiry,” and choose “Child Care” from the drop-down list. Attach the required form using the paperclip attachment tool. Human Resources will then verify your eligibility, and you will be notified of the outcome via your HRNow case. Once your application is approved, you can take the verified application to an eligible KinderCare location that has available openings based on your child’s age and classroom assignment.

Families that select income of $69,999.00 or less must verify their household income via tax returns with KinderCare. 

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 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:

1. A Sliding-Scale subsidy for all program participants (at thirty six KinderCare locations), based on household income; see above child care tuition subsidy benefit. 

2. The NCFlex Dependent Day Care Flexible Spending Account, administered by P&A Group, allows employees to set aside a portion of their pay pretax to use for child care/elder care expenses that are not covered by insurance, or only partially covered. 
3. See below for account information, or visit the NCFlex website for complete details.

The Dependent Day Care Flexible Spending Account (DDCFSA) offers employees a tax-free way to pay themselves back for eligible dependent care expenses throughout the year. An employee can contribute between $120 and $5,000 each plan year to the DDCFSA to pay for dependent day care and elder care expenses on a pre-tax basis if both the employee and their spouse works, the spouse goes to school full-time, or the spouse isn’t able to care for himself or herself. The spouse may also be unemployed but actively looking for work. If the spouse works part-time, the employee’s election may not exceed the lesser of the employee’s annual income or their spouse’s annual income. The IRS sets the maximum contribution, which is $5,000 per family, per year.

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.

Day Care Changes

Qualifying Life Event – Dependent Day Care Flexible Spending Account Only

Employees can request to make changes to their dependent day care flexible spending accounts for qualifying life events that are related to a day care provider’s rates and whether a child is eligible or will attend day care. You have 30 days from the date of an event to make changes to your account.