The guiding research question for this particular study is: What are the qualifying conditions and exemptions when employers decide to aid their employees with child care? The author justifies the question by stating that, under the childcare rules, this childcare would be charged to national insurance and income tax contributions. Although, there are three types of child care support by employees that can be exempted from partly or wholly from the stated charges if some relevant conditions are followed. The author identifies gaps in the scheme; particularly an assessment of what an employee earns should be carried out in order to calculate the amount to be exempted.
The article follows the paradigm that employers who support their employees, with childcare do not have to be wary of the costs because of some of the plans for employer-supported childcare exempt from national insurance and Income tax contributions. Therefore, provision should not be denied because of cost-cutting measures in the firm. The research study is grounded in the resource-based theory likened to a competitive advantage, which is dependent on the capabilities and resources of an organization.
The starting point is in the organization’ s strategic management that involves strategies and decisions. In accordance with this theory, identifying resources is vital and can act as a major handicap for various organizations that identify only fragments of resources available to them. This theory is relatable to the article in that the company should aim to identify the resources at their disposal and work to reduce the costs from giving employer support for childcare, through identifying how they can be competitive by offering this support.
While offering childcare support would impact their bottom line, they should use al the resources at their disposal, in this case, exemptions from paying tax contributions, to offer competitive support rates.
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