Flexible benefits plans most often called cafeteria plans help the parents to choose benefits which suits best to them in terms of child care. A typical cafeteria plan consists of a core of fix benefit and also offer group of optional benefits to the parents which enable them to get limited financial aid. One method of flexible benefit plans for employee to help them in child care is salary reduction method. In this method child care assistance is provided to the employee by reducing their salaries in a fixed portion before their tax income for the dependent care cost. The reduction of salary is then reimbursed for child care cost along with other funds to the employee.

Cafeteria plans can really be helpful to meet diverse needs of the employee and the employer. It can be less expensive as compared to other traditional plans to reduce child care cost. Salary reduction actually means the saving in pay roll and saving in social security taxes.