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Everything You Need to Know About DCAP
A Dependent Care Assistance Program is a tax-exempt benefit provided by employers to employees to help pay for the care of a dependent. It is a type of Flexible Spending Account (FSA) where you set aside tax-free dollars from your paycheck to use as payment for eligible daycare services. After paying for care and filing a claim, employees are reimbursed for the expenses incurred from the DCAP account.
Unlike FSAs, DCAP funds are available only as they are accrued, per payroll deduction. Funds do not roll over, so any remaining funds in the DCAP account are lost...