Employee Benefits Dependent Care FSA: Helping Families Save on Childcare Costs
In today’s fast-paced world, balancing work and family responsibilities can be challenging—especially for working parents. One valuable solution many employee Benefits Dependent Care FSA . This benefit provides a strategic way to reduce the financial burden of childcare or elder care, while also helping employees save on taxes. Under IRC Section 129 , employers can offer a Dependent Care Assistance Plan (DCAP) —commonly known as a Dependent Care FSA—as a part of their employee benefits package. This program allows employees to set aside pre-tax dollars to pay for eligible dependent care expenses. It not only supports employees' work-life balance but also helps employers enhance their benefits offerings without increasing salary costs. What is a Dependent Care FSA? A Dependent Care FSA is a type of account where employees can contribute up to $5,000 per household annually ($2,500 if married filing separately) from their paycheck before taxe...