Written primarily from the employer's perspective, this report examines the issues involved in providing child care assistance as an employee benefit. Chapter 1 summarizes rapid changes in the work force that have produced employer involvement in child care arrangements. The major findings of the report are highlighted in Chapter 2, including the following: (1) the number of employers offering some child care services has doubled to 1,000 since 1982; (2) employers have misgivings about the cost of child care (especially on-site care) and are looking for other means of support such as benefits, flextime, and paternity leave; (3) labor unions generally have not pushed for child care benefits in contract negotiation because of the cost and relatively small number of members who would benefit; and (4) less than 4% of an employer's workforce would tend to use employer-assisted child care. In Chapter 3, an overview of developments in employer-supported care is presented, including a summary of studies that have measured benefits to employers. Labor union officials discuss their initiatives in the area in Chapter 4. Chapter 5 explores relevant tax issues, including an examination of Internal Revenue Service (IRS) press releases on standards for flexible benefit programs. Chapter 6 considers models of child care used by employers (i.e., on-site and off-site child care, information and referral services, parent seminars, family home care, and flexible benefit plans). Chapter 7 presents case studies of 10 employers' child care benefits, while chapter 8 deals with corporate officials' concerns about potential corporate liability. The development of personnel policies that can help employees with children is considered in chapter 9. Finally, appendices present a directory of child care resources and documentary materials such as IRS rulings, state tax laws, union bargaining proposals, and employer policies. (CB)