The ability to provide proper care for loved ones while at work is a major benefit for employees with those who depend on them. However, finding affordable care is a critical issue for many families. Research shows that families across the U.S. spend an average of $8,355 a year per child while those with senior dependents can spend over $1,000 a month on in-home care.
Whether it’s child care or senior care, not being able to afford quality care impacts an employee’s ability to work. Employers can help employees find reliable and affordable care for their loved ones with a Dependent Care FSA. Here’s how a dependent care account works and its benefits.
What is a Dependent Care FSA?
A Dependent Care Flexible Spending Account (FSA) is a great way to help employees take care of those who depend on them. Dependent care plans give employees the option to use pre-tax dollars to pay for eligible dependent care expenses such as:
- Daycare
- Day-camp
- Home care
- Nursing aides
- Nanny services
Any employer can decide to offer these dependent care FSA eligible expenses to their employees. At the beginning of the year, the employee estimates their annual out-of-pocket expenses for their dependents. The money elected is automatically deducted from their gross pay before federal, Social Security, state, and local taxes are withheld.
These accounts are a great way for employees to save money on the expenses they are undertaking as well as ensure that all costs are accounted for through either reimbursements or the use of a dedicated debit card.
Help employees care for their people with a Clarity Dependent Care FSA
A Clarity Dependent Care Flexible Spending Account (DCA) allows employees to take better care of their family members by providing access to pre-tax money for child and adult care expenses. To simplify the entire process, we offer a claim filing system, customer support, an innovative consumer benefit enrollment platform and a Clarity Benefit Card to give employees easy access to all Clarity accounts. With a Clarity DCA, your employees can save an average of 30% on dependent care expenses and experience peace of mind knowing their loved ones have the proper care. Contact us today to learn more about a Clarity DCA.
Sources:
https://www.cnbc.com/2021/05/19/what-parents-spend-annually-on-child-care-costs-in-2021.html
