Dependent Care

Employees who enroll in a dependent care account (DCA) experience tax savings on expenses like daycare, elderly care, summer day camp, preschool, and other services that allow the employee to work full time. Employers also save on FICA and Social Security taxes for every employee who contributes to a DCA.

Employers with a major medical or group health plan can offer a DCA to their employees. Employees are not required to participate in the employer’s health plan in order to enroll in a DCA.

Employees will receive a debit card linked to their DCA account that they can use for eligible purchases, or they have the option to file a claim if their provider does not accept debit card.

71% of working parents want their employers to offer child care benefits. Helping employees save money on essential services such as daycare and pre-school can aid in employee retention and recruitment.