Save money while you work. Clarity Dependent Care Accounts (DCA) give employees easy access to tax-free dollars for child care and adult day care expenses.
What It Is
A Dependent Care plan allows employees to use pre-tax dollars to pay for out-of-pocket child and adult dependent care expenses. Any employer can decide to offer it to their employees. At the beginning of the year, the employee estimates his annual out-of-pocket expenses for his dependents. The money elected is automatically deducted from his gross pay before federal, Social Security, state, and local taxes are withheld. This year, employees can elect up to $5,000 annually.
Dependent Care Account Administration: How It Works
Step 1: During open enrollment, employees estimate their expenses and decide their annual election (up to $5,000).
Step 2: Contributions are made available to participants on a per-payroll basis. They can be accessed on a smart-debit card, mobile app, or by direct deposit.
Step 3: Participants can use those pre-tax dollars to pay for any eligible dependent care services.
Qualified Dependent Care expenses include day care centers, home care, nursing aides, day-camp, and much more. For a full list, please click here.
For a full list, please click here.
How Do Employees Get Paid?
Employees can snap a photo of their receipt and submit a web claim from any device with an internet connection. That includes smartphones and tablets through our mobile app – Clarity Mobile.
Employees can set up providers with automated direct payments, eliminating the need for receipts or paperwork.
Pay Yourself Back
If expenses have already been paid for, employees can be reimbursed automatically through check or direct deposit.