26 Feb

Posted at 17:36h in Employee Benefits White Papers by . .

Legal Update Header On Feb. 18, 2021, the IRS released Notice 2021-15 to clarify special rules for Section 125 plans, health flexible spending arrangements (FSAs) and dependent care assistance programs (DCAPs).

Temporary Special Rules for Health FSAs and DCAPs

The Notice is intended to clarify the application of special rules for health FSAs and DCAPs provided under the Consolidated Appropriations Act, 2021 (CAA).  

12 May

Posted at 18:06h in COVID-19, Employee Benefits by . .

A dependent care assistance program (DCAP) allows employees to pay for qualifying dependent care expenses, such as day care expenses, on a tax- free basis, up to certain limits. With many schools and day care facilities closing due to the COVID-19 outbreak, employees may want to change the amount of their DCAP contributions.

Also, employees may be concerned about not being able to use all of their DCAP funds this year due to changing child care needs and availability.