Dependent Care Benefits are employer-provided assistance, such as tax-advantaged accounts or subsidies, to help employees cover childcare or eldercare expenses.
- What are dependent care benefits?
Answer: They are employer assistance for childcare or eldercare expenses. - What is an example of a dependent care benefit?
Answer: An example is a Dependent Care Flexible Spending Account (FSA). - Who is eligible for dependent care benefits?
Answer: Eligible employees are those with qualifying dependents under age 13 or disabled adults. - What are the tax advantages?
Answer: Contributions are made pre-tax, reducing taxable income. - How can employers offer these benefits?
Answer: They can set up FSAs or partner with childcare providers.
