Home / Blog / Why Every Employer Should Have a Section 129 Dependent Care Assistance Plan (DCAP) Flexible Spending Account (FSA)
Why Every Employer Should Have a Section 129 Dependent Care Assistance Plan (DCAP) Flexible Spending Account (FSA)
Every dollar ran through the Section 129 DCAP FSA plan reduces an employer’s payroll. Therefore, employers don’t have to pay FICA, FUTA, or workers’ comp premiums (depending on your State) on those dollars. In many cases, this savings can add up to as much as 20 percent of every dollar being passed through the plan.
Employers struggling to cover overhead in a failing economy should consider that there could be as much as $1,000 in tax savings per employee who utilize a company Dependent Care Assistance Plan (DCAP) Flexible Spending Account.
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