Dependent Care Assistance Plans (DCAP)
Some companies offer a DCAP program. This allows employees to set aside up to $5,000 of their pre-tax salary per year to pay for child care expenses. There are some rules that apply. Money that is not spent on this program is usually not refundable. Talk with the benefits coordinator at your job for more details on the plan.
Many employers now offer some form of child care assistance to their workers. Some examples include:
- Matching funds or subsidy money that the employee spends on child care needs.
- Work and family resources that may include enhanced CCR&R services in child care, elder care, and work/life issues.
- Employer funding for camp programs for employee’s children during school and summer vacations.
- Some employers offer on-site care for mildly ill children and emergency back-up care.
- On-site child care at a reduced cost. This is good for both for the employee and the employer. Reduced tuition costs and stress-relief increases productivity, retention, and hiring incentives.