Many companies today consider employer-sponsored child care a viable solution to problems facing employees who are also parents. Companies can choose from many program options, each with particular benefits for employer and employees. This manual highlights what is presently happening in employer-supported child care, particularly the cost benefits companies are reporting and the options open to employers. Brief descriptions of several types of program options are given, including the following: resource and referral services, financial assistance, flexible benefits, consortium, and direct services. Also discussed are methods and flow charts for choosing the best program option and tax considerations for both employers and employees. Employer-supported child care has been found to improve productivity and morale, be cost effective, and serve as an excellent recruitment and retainment tool. (DST)