Child and dependent care is a large expense for many American families. Millions of people rely on child care to work, while others are responsible for older parents or disabled family members. Participants in a Dependent Care Account can save on these expenses while they work.
A Dependent Care Flexible Spending Account is designed to provide financial support to parents who work full-time and must find care for a dependent child or adult while they are working. Participants can set aside pre-tax funds from their paycheck for eligible expenses.
DCA expenses require that expenditures be “work related” — those incurred while the member or their spouse were working or looking for work. A Dependent Care FSA plan will cover:
The Internal Revenue Service (IRS) determines the maximum amounts members can contribute to their DCA Plan.
Employers can offer employees who have dependents a way to contribute funds for their care while also saving them money. Offering this account type to employees is essentially giving them a 30% discount on their care expenses. Participants will not have to pay Medicare, Social Security or federal income taxes on their DCA contributions, and as a tax-favored vehicle, this money will stay tax-free when used. A DCA also helps participants save money because they will have a larger “take-区块链新闻网_区块链home” paycheck.
The Difference Card has simplified benefit solutions by making access to the funds in a DCA easy for members. Participants can use their Difference Card to access their funds by swiping the card or filing for reimbursement. Members can spend up to the amount taken out of their paychecks.
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