The employer-employee cost-sharing model you can implement todayβno government funding required
Duo-share is a simplified version of the tri-share model where child care costs are split between just two parties: the employer and the employee. Without waiting for state legislation or government funding, employers can immediately offer this powerful benefit to support working parents and improve workforce retention.
50%
Tax-deductible business expense
50%
Significant cost reduction
| Feature | Duo-Share | Tri-Share |
|---|---|---|
| Cost Split | 50% employer / 50% employee | 33% employer / 33% employee / 33% government |
| Government Funding | Not required | Required (state/local) |
| Implementation Time | Weeks | Months to years |
| Geographic Availability | Anywhere | Limited to participating states |
| Eligibility Requirements | Employer-defined | State-defined (income limits, etc.) |
| Employee Savings | 50% reduction | 67% reduction |
| Employer Cost | Higher (50%) | Lower (33%) |
Consider an employee paying $1,400 per month for child care. Under a duo-share arrangement:
| Scenario | Employee Pays | Employer Pays | Annual Employee Savings |
|---|---|---|---|
| No benefit | $1,400/month | $0 | β |
| Duo-Share (50/50) | $700/month | $700/month | $8,400 |
| Duo-Share (60/40)* | $560/month | $840/month | $10,080 |
*Some employers choose to cover more than 50% to maximize employee benefit.
No need to wait for state legislation, budget appropriations, or program launches. Start offering the benefit within weeks.
Works in all 50 states, regardless of whether your state has a tri-share program. Perfect for multi-state employers.
Design eligibility criteria, contribution levels, and provider networks that fit your workforce and budget.
Employer contributions are 100% tax-deductible. Employees may also benefit from pre-tax payroll deductions.
Stand out in recruiting with a benefit that directly addresses one of working parents' biggest challenges.
When your state launches a tri-share program, you're already set upβjust add the government contribution.
Survey employees to understand child care needs, current costs, and interest level. Identify how many employees would benefit.
Decide on contribution percentage (50/50 or other split), eligibility criteria, maximum benefit amounts, and whether to use a provider network.
Choose how to administer: in-house payroll, third-party benefits administrator, or child care platform partner.
Launch with clear communication about the benefit, how to enroll, and what costs are covered. Provide enrollment forms and support.
Monitor enrollment, costs, and employee feedback. Measure impact on retention and absenteeism. Adjust program as needed.
Before implementing, calculate your potential return on investment:
| Cost Factor | Without Duo-Share | With Duo-Share |
|---|---|---|
| Annual turnover (parents) | 25% | 10% |
| Cost per turnover | $15,000 | $15,000 |
| Turnover cost (20 parents) | $75,000 | $30,000 |
| Duo-share cost (20 employees) | $0 | $84,000 |
| Net savings | $45,000 + improved productivity & morale | |
Yes, you can set eligibility criteria such as tenure requirements, full-time status, or income thresholds. However, consult with HR/legal to ensure compliance with non-discrimination requirements.
Duo-share can complement a DCFSA. Employees can use bothβthe duo-share benefit reduces their out-of-pocket costs, and they can use DCFSA funds for their remaining share (up to IRS limits).
That's your choice. Some employers allow any licensed provider, while others partner with specific networks for quality assurance and simplified payments.
Options include: (1) Direct payment to providers, (2) Reimbursement to employees, or (3) Using a third-party administrator. Direct payment is often preferred for simplicity and verification.
Employer contributions are tax-deductible as a business expense. For employees, employer-provided dependent care assistance up to $5,000/year is typically excluded from taxable income. Consult a tax professional for your specific situation.
Our team can help you design, implement, and administer a duo-share program tailored to your workforce.
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