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May 2011 Moms
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Any Accountants?

bcnoellebcnoelle member
in May 2011 Moms
I was wondering if anybody knows if your company can help pay your daycare cost if you are the owner of the company?  I tried to google and didn't find much information and I am waiting to hear from my accountant, but would love other opinions.  I'm not sure if each state is different either.  It would be so nice to write off part of day care as a business expense pre-tax.  Thanks for any info!
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Re: Any Accountants?

  • KariMichaelKariMichael

    Your company can pay into an FSA for dependant care.  That is pre-tax dollars that are usually managed by a 3rd party (if you work for a huge company, sometimes they do it in house) a Credit Union or some banks with investment agents can manage as well. Some insurance companies have an FSA option, you'd have to look into your company further.  FSA's had a cap for 2010 of 5k for a married filing together or 2500 for filing single or seperate. I don't think this changed for 2011 like other FSA's did.  It won't pay for 5 day a week day care, but where i live it adds up to about half.

    if you google FSA dependant care you will find lots of different company proviles and rules.  it will give you a vague guide to how they all work.  I'd call an investment person, they will be able to tell you int  ins and outs of how to make it work for you. 

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  • bcnoellebcnoelle member
    imageKariMichael:

    Your company can pay into an FSA for dependant care.  That is pre-tax dollars that are usually managed by a 3rd party (if you work for a huge company, sometimes they do it in house) a Credit Union or some banks with investment agents can manage as well. Some insurance companies have an FSA option, you'd have to look into your company further.  FSA's had a cap for 2010 of 5k for a married filing together or 2500 for filing single or seperate. I don't think this changed for 2011 like other FSA's did.  It won't pay for 5 day a week day care, but where i live it adds up to about half.

    if you google FSA dependant care you will find lots of different company proviles and rules.  it will give you a vague guide to how they all work.  I'd call an investment person, they will be able to tell you int  ins and outs of how to make it work for you. 

    My company is very small.  I'm the owner/president and have 3 employees.  I'm thinking that if I set something like this up, then I would need to give the options to my employees too.  That might not be a bad idea!  I will try to look into it further.  Thanks for the input!

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  • Melanie051907Melanie051907
    normally you need to offer the same benefits to your employees.  Look up non-taxable fringe benefit rules.  Given your situation, I would think you fall under the prohibited class of employees.
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  • bcnoellebcnoelle member

    imageMelanie051907:
    normally you need to offer the same benefits to your employees.  Look up non-taxable fringe benefit rules.  Given your situation, I would think you fall under the prohibited class of employees.

    Hmmmm.  I think giving my employees this option would be great if it's something that they can use.  I just started my business 2 years ago, so these are things I'm still working on.  I will also have my husband look into his company.  I know we have a medical FSA from them.  Thanks!

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