BASE® Dependent Care Assistance Plan

Overview

The BASE® Dependent Care Assistance Plan (DCAP) offers the opportunity for employees to pay for their employment-related dependent care (child or adult) expenses tax free. No matter the dependent care service, this provides some additional financial assistance to allow employees to take care of their family in the way of pre-tax dollars.

Benefit to Employer:

Enhanced Benefits Package.
Employers sponsor DCAP as a means of making dependent care more affordable by allowing employees an opportunity to set aside a portion of their pre-tax wages to pay for qualified dependent care expenses. The addition of this benefit can help with recruitment and retention of employees.

Financial Benefits.
Even though this is considered an employer provided plan, the employee elects to make a pre-tax contribution for dependent care expenses that reduces the employer’s share of payroll taxes.

Benefit to Employee:

Peace of Mind.
Employees can continue to work, and still have peace of mind that they have established funds to help pay for the cost of dependent care expenses.

Increased Take-Home Pay.
Since these funds are transferred from the employee’s wages on a pre-tax basis, employees save federal, state, Social Security, and Medicare taxes. By setting aside these dollars pre-tax, employees are able to increase their take-home pay.

Plan Eligibility

Guidelines
  • Employer with one or more employees.
  • Employee elects to have a set dollar amount up to the government established limit deducted pre-tax from their paycheck to pay for child and/or dependent care expenses.

Tax Savings Calculator

The BASE® 125 Cafeteria Plan provides a variety of options that are great for enhancing benefit packages, while allowing them to cut payroll taxes by decreasing the total taxable payroll. Employees will save 25% to 40% in taxes for every dollar they elect, while employers save on every dollar employees set aside from their paychecks to budget for their 125 plan.

With this calculator you will get an estimate of employee savings that can be gained utilizing the BASE® 125 Cafeteria Plan. The tax calculator provides an indicator for the potential savings that can be realized, whether any combination of the Dependent Care Assistance Plan, Flexible Spending Account, or Premium Only Plan options are utilized.

BASE®
125 Cafeteria Plan Tax Savings Calculator

Enter amounts for one employee participant:

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Frequently Asked Questions

No. The only time an employee can make a change to the amount elected during the plan year is if they have had a qualifying event during the plan year (e.g., marriage, divorce, or the birth of a child). These types of election changes must be made within 30 days of the event.

The limit for any dependent care plan is federally capped at $5,000 per year. The IRS limits the amount you can put into the DCAP as follows:

  • $2,500 maximum contribution, if you are married and filing separately.
  • $5,000 maximum contribution, if you are married filing a joint return, or if you are a single parent.

  • Children under age 13 in the participants custody whom are claimed as a dependent on their tax return.
  • A spouse who is incapable of self-care.
  • A dependent that lives with the participant, such as a child over age 13, parent, sibling, or in-law-who is incapable of self-care, and who is claimed as a dependent on their tax return.
  • If care for a disabled spouse or dependent is provided outside the home, the dependent must live with the participant at least eight hours a day.

Contact Us

Send us your questions or comments by filling out this form and a BASE® representative will call within one business day, or call 1 (888) 386-9680 to speak with a support specialist during our office hours.

Business Office Hours

  • Monday - Thursday
    8am to 4:30pm CST
  • Friday
    8am to 12pm CST
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