With our Dependent Care Account, you no longer have to hassle with sending in receipts or wait to be reimbursed. Most parents live from paycheck to paycheck. The typical plan requires that money is deducted from the employees check but before the employee has access to their money they must pay their provider, obtain a receipt, turn the receipt into the administrator and wait to be reimbursed. Reimbursement can take up 2 to 3 weeks. Meanwhile, the employee is paying double daycare. We don’t believe there is a benefit because the typical employee simply can not afford to participate.
Liberty Benefits reimbursement system eliminates the hassles employees normally have to commit to in order to participate.
We can pay the daycare facility directly.
Employees have no weekly checks to write to daycare's
No Receipts to keep since we paid direct to the provider
The same week money is deducted from their paycheck, their daycare is paid directly from Liberty Benefits!
Liberty benefits makes the dependent care benefit employee friendly!
A Federal tax law allows you to pay up to $5,000 each year of qualified childcare expenses with before-tax earnings (plus an additional $1,000 tax credit if applicable)! This is a tremendous opportunity to reduce your taxes while paying an ordinary and necessary expense.
During your company's open enrollment period, you decide your plan year election -- i.e. how much you want to contribute to your DCA account. This amount may change each plan year as your personal circumstances change.
Next, you enroll online by completing an online election form, which authorizes your employer to deduct a certain portion of your salary each pay period on a before-tax basis. These contributions are then placed into your spending account throughout the plan year via payroll deduction. If you like, we will provide you with a free savings analysis.
Then, provide us information on your daycare provider. Every pay period we will send the day care amount to your providers to pay for your daycare.
The savings is reflected in your spendable income starting with your very next paycheck following enrollment. What could be more convenient?
