I don't know if having an employee is tax deductible, but I think maybe continuing to have a day care tax credit, regardless of how you use that, would be a good practice, as would allowing that to be used for home care, and not just for day care at a centre or something. It would be something to explore. It's a good idea.
I have actually worked from home. I do have three children, and I did participate at one time, when my daughter was young, working three days from home and two days at the office. I had to get work done. It is hard when you're trying to balance that, but I found that by working in the evenings and just being flexible in my hours to deliver my work, as opposed to having to do it within set times, I was able to accommodate the workload at home by working with my husband.