Section 129 of the Internal Revenue Code (the “Code”) allows an employer to provide tax-advantaged dependent care assistance benefits to its employees.1 Employer-sponsored dependent care benefit programs provided to employees pursuant to the Code’s requirements are typically referred to as Dependent Care Assistance Programs (DCAPs) or Dependent Care Flexible Spending Accounts (Dependent Care FSAs). Dependent Care FSAs are dependent care programs included in a Section 125 plan that generally include employee pre-tax contributions to an account from which reimbursements are provided for eligible dependent care expenses.

Read the guide below for more information.

Regulatory and Legislative Strategy Group