What is the definition of employer-provided "on-site" childcare?

[emilydu22]

The building in which my husband works has a daycare. It is open to public, not just for the employees of my husband's company. Also, we pay for the daycare at the same rates as everybody else, it is not subsidized by the employer. In that case, is this considered as onsite childcare provided by the employer?

[DanO · Accepted solution]

This would not be a employer-provided "on-site" childcare.  

Employer-provided would mean that the employer offers a more affordable daycare option than paying a full price for a daycare that could possibly out of the way of going to work.

It is not a simple or inexpensive program to get up and running, but there are benefits for both the employer and employee that goes far beyond the surface dollars that are seen.  

The companies would be able to receive tax credits that will enable a lower cost daycare facility for the employees, and also affords the employee a peace of mind and less stress of getting their child to daycare and knowing they are right there.