Dependent Care Pretax Limits 2018

Employer's with a dependent care FSA plan in place may deduct pretax from their employee's wages to cover certain child/elder daycare services, preschool and after school programs. Employee's make an election at the beginning of each calendar year and those funds are withheld pretax from their paychecks.  Once the employee has returned receipts to you for their care, you reimburse them using those pretax funds.