What is a Dependent Care Flexible Spending Account?
A dependent care flexible spending account (FSA) allows you to pay for employment-related dependent care services related to care of a qualifying individual on a pre-tax basis. For a list of eligible dependent care expenses, please click here (provide link to DCAP list – currently on website under resources tab).
A dependent care flexible spending account, or dependent care FSA, is an account that an employer permits an employee to establish. An employee with this account can have before tax earnings withheld from his paycheck and put directly into his dependent care FSA. In the fourth quarter of the year, employers require their employees to decide whether or not to participate in this kind of FSA. Employees also decide how much money is to be taken from each paycheck and put into the FSA. Employees can get more affordable dependent care option because their FSA money is not taxed.
