THE CREATIVE SOLUTION THAT MAKES IT AFFORDABLE TO PARTICIPATE

Daycare Providers Paid Directly

The Dependent Care FSA is the perfect savings tool for employees with daycare costs – these individuals can save between 25% and 40% on their pre-tax daycare expenses.

However, dependent care FSAs are traditionally underutilized. Double–payment and long waiting periods for reimbursement of funds makes the plan costly and keeps our enrollment numbers down.

The H&G Benefits Dependent Care FSA provides an innovative solution to this problem: our unique Direct Pay Service. To make this benefit affordable, H&G Benefits pays daycare providers directly. With the Direct Pay Service, participants’ Dependent Care Dollars are put to work immediately, giving them an even greater reason for participating.

Additionally, participants can elect post-tax deductions for daycare fees that exceed the weekly IRS maximum of $96.15 ($5,000 annually). Our staff even contacts the day care provider directly to set up the arrangements, making elections simple for participants.

With the Direct Pay Program, employers result in outstanding enrollment rates and a guaranteed 2% payroll savings on all re-directed pre-tax dependent Care Funds.

Results for the employer:

No liability for your company
No up-front cost
Guaranteed 2% gain to your company on all pre-tax redirected dollars
100% of administration handled by H&G Benefits – no additional burden for your HR department.