A PRE-TAX BENEFIT FOR ELIGIBLE DEPENDENT CARE SERVICES
Dependent care reimbursement accounts allow plan participants to use salary reductions for child care and dependent care expenses on a pre-tax basis.
What You Need to Know
- The dependent must be under the age of 13, or physically or mentally incapable of self care
- The care cannot be provided by a spouse or dependent
- Employees save on federal and state income tax, along with FICA and Medicare taxes (approximately 30%)
- Employers save on FICA and Medicare taxes (7.65%)
- IRS non-discrimination rules apply
- Must have a written Plan Document
- Participants are required to receive a Summary Plan Description
Let us exceed your expectations. Contact Beth Wepplo at (888) 388-1040 to learn more.
