How Reliable HR Services Can Help With Dependent Care Reimbursement
Employees can Afford Better Daycare with Help From Reliable HR Services
How you use HR services directly impacts your employees’ quality of life, but they do add to your accounting chores. Get help from a company like Einstein PEO to handle the extra work. You can easily expand your benefits programs to include things like Dependent Care Reimbursement accounts. Help the parents employed by your company come to work with peace of mind by giving them the chance to use higher quality daycare.
IRS Exceptions to Dependent Care Reimbursement Plans
Benefits management causes big problems for businesses without the resources to oversee things correctly. The time you waste, and the fines you risk, pose real obstacles to offering these types of opportunities. Unfortunately, business owners who avoid these responsibilities struggle to find the best employees or to keep the ones they put time into training.
The IRS has very specific rules on Dependent Care Reimbursement plans making them more difficult to put on autopilot. Unless there’s an expert prepared to handle the books, it makes a lot of sense to look to HR services for specialized support. These companies have the exact training and business tools needed to ensure you’re always abiding by regulation. Here are just a few of the exceptions the IRS applies to reimbursement plans:
• Funds can only be used for physical care, not extra clothing, food or supplies
• Providers must operate by state guidelines
• Eligibility ends at age 13 for childcare, causing big issues for plans when dependents age out midway through the year
• Dependent care for adults may require special consideration
How Your Company Benefits from Dependent Care Reimbursement
All IRS approved disbursement plans cover up to $5000 in dependent care costs each year, unless you’re married filing separately. Each employee can set their own predetermined amount. This total is broken down into installments withdrawn each payday before taxes are taken out. Parents, or those caring for sick or injured relatives, can request a reimbursement of funds at any time, but they cannot get a refund if they don’t spend all of the money in their accounts.
HR services already know how to handle these responsibilities. They’re expertise gives you the support and security you need to tap into the bonus you get from providing generous employment benefits. It’s more than a matter of doing a nice thing for the parents who work for your company.
When your workers have access to quality care, they don’t worry as much about being at work. You increase employee satisfaction by allowing them to enjoy their jobs. Not only that, but because your company makes that daycare possible, you increase loyalty as well.
You will also see fewer workers taking sick days to provide dependent care on their own. Increase dependability while cutting down on waste. These kinds of policies help reduce stress among your staff, and lead to a happier, healthier and more productive workforce.
Discover how your business can use reliable HR services to provide more benefits today.