What is a Dependent Care Assistance Program (DCAP)?

A Dependent Care Assistance Program (DCAP) is a type of health insurance law in Virginia that helps employees pay for child or dependent care expenses. The program allows employees to save a portion of their earnings before taxes are taken out and then use these funds to cover certain dependant care costs. Employees are able to contribute up to $5,000 of their pre-tax wages for calendar year. The funds used from the DCAP account are not subject to income, Social Security, or Medicare taxes. With the DCAP, employers can reimburse an employee for daycare, respite care, summer camps, and other expenses related to the care of a dependent. The purpose of the program is to help working parents balance career and family responsibilities without losing out on the benefits of their salary. DCAP is a great way for employers to show their employees that they care about the personal and professional lives of their employees. It’s also a great way for employees to save money on their taxes. The costs of daycare, respite care, and summer camps add up quickly, and the DCAP can help employees cover those costs without having to spend their own money.

Related FAQs

What is the primary care physician rule?
What is a medical necessity review?
What is a coverage denial?
What is a coinsurance clause?
What types of health insurance are available?
How does health insurance work?
What are some of the benefits of group health insurance?
How much does health insurance cost?
What does health insurance cover?
What are the different types of health insurance plans?

What is a Dependent Care Assistance Program (DCAP)?

Related FAQs

Related Blog Posts