Most employers struggle with the desire to offer benefits that protect their employees, while needing to manage costs. With a Dependent Care Assistance Program, you give your employees the security of an account that can help them pay for work related dependent care expenses, while reducing their taxable income. And in the end, that helps your company’s bottom line.
A DCAP can save money for you and your employees: When an employee contributes to a DCAP with pre-tax dollars (through automatic payroll deductions that you allow), they reduce their taxable income. Less taxable income for your employees means less payroll taxes for you.