Then a Dependent Care Assistance Plan (DCAP) might be just what you need! A DCAP plan is an employer-sponsored benefit that helps employees pay for the care of a qualified dependent. Each pay period, the employee makes a pre-tax contribution to the DCAP account. After paying for care and filing a claim, the employee receives reimbursement from the DCAP.
A DCAP account may also be called a Dependent Care FSA.
See IRS Publication 503 for more information.
For more information about a Dependent Care Assistance Plan, check out these blogs from the Captain: