Dependent Care Flexible Spending Account
A WageWorks® Dependent Care Flexible Spending Account (FSA) is a pre-tax benefit account used to pay for dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare.
Why You Need It
How It Works
Simply decide how much to contribute to your account each year, and funds are withdrawn from each paycheck for deposit into your account before taxes are deducted. As soon as your account is funded, you can use your balance to pay for many eligible dependent care expenses.
How You Manage It
With a variety of payment and reimbursement options, your WageWorks Dependent Care FSA is easy to use. Arrange for convenient direct payments to your dependent care provider or be reimbursed for payments you make. You can even have your dependent care provider sign receipts using your mobile device.
Manage your account via a secure website on any computer or mobile device connected to the Internet or via the WageWorks EZ Receipts® app.
You can contribute up to a maximum of $5,000 to your WageWorks Dependent Care FSA. It’s important to estimate your annual dependent care expenses and make your contributions carefully. Fortunately, your employer offers a grace period, which allows you to incur eligible expenses up to 2 ½ months after the plan year ends in order to maximize your FSA funds. At the end of the grace period, any unused Dependent Care FSA funds will be forfeited.
How You Get It
Ready to save? Sign up for a WageWorks Dependent Care FSA during your Annual Enrollment period. If you are newly eligible (e.g. new hire), contact the GM Benefits & Service Center today at 800-489-4646!
Save Big with a WageWorks Dependent Care FSA
A Dependent Care FSA lets you pay for qualified out-of-pocket dependent care expenses on a pre-tax basis. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.
|Your Estimated Tax Savings|
|Without Dependent Care FSA||With Dependent Care FSA|
|Gross annual pay (estimate)||$60,000||Gross annual pay (estimate)||$60,000|
|Estimated tax rate (30%)||-$18,000||Max. annual dependent care FSA contribution||-5,000|
|Net annual pay||=$42,000||Adjusted gross pay||=$55,000|
|Estimated annual dependent care expenses||-$5,000||Estimated tax rate (30%)||-$16,500|
|Final take-home pay||=$37,000||Final take-home pay||=$38,500|
Take home this much more with a DCFSA Account: $1,500
All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, dependent care expenses, and tax savings may be different.
Use this calculator to see how much you can save with a Dependent Care FSA.