Employers, did you know you could be helping your employees SAVE MONEY by setting up a Dependent Care Assistance Plan for them? Also referred to as a dependent care flexible spending account (FSA).
What is this you say? Well, let’s say that lil Jack and Jill need to be in daycare while your employee works hard at their job. We all know that daycare is a serious expense for working parents. What if there was a way to get a little bit of relief? There is! Having a DCAP would allow daycare expenses up to $5000 (for a two-parent family) to be paid for TAX FREE!
For example, a two-parent family earning $60,000 as a household could save 22% of $5000 that they have to spend on daycare expenses which equals a savings of $1,100! This is money that the family is going to have to spend anyway. Why would someone pass up the chance to save $1,100? Often it is because they just didn’t know this was a thing! Or perhaps, their employer hasn’t put together an Employee Benefits package yet.
As we are facing very tight and difficult financial times in our nation right now, helping employees save extra money is a big step towards being a fabulous employer to work for! As you already know, attracting and retaining employees is difficult. Having perks on the job is one of the best ways to accomplish this. While we can’t help with better breakroom snacks, we can help you provide the very best benefit package that helps your employees all year long.
At ANI, we are able to help setup FSA, HRA, HSA and DCAP plans for your company. There is often a lot of confusion around these savings vehicles, but we LOVE to clear up the confusion and make things clear. We have a variety of companies that we work with to achieve this. One of our Third-Party Administrators, Connect Your Care, created this great infographic about DCAPs eligible and ineligible expenses.
Employee Benefits is often a package of core benefits such as medical, dental and vision plans as well as group life, retirement, disability and saving vehicles such as the DCAP we are discussing today. There are other voluntary products that can be setup for employees, at no additional cost to you as an employer, such as accident, cancer, and hospital plans to name a few.
Call us to put together the right Employee Benefits package for your employees. 907-562-3020