Can you say BS - work benefit vent....WWYD?
A lawyer friend at my job told me how her MIL watches her DS, and she uses 2 company benefits in order to pay her MIL. ?One benefit is the pre-tax up to 5K to pay for childcare. She uses this benefit to pay her MIL -- along with the 2nd benefit consisting of childcare subsidy (the co. will pay 50% for daycare up to 800$ a month). ?Anyway - she told me the government pre-tax benefit states that the provider does not need a license -- so she told HR there is no reason the company subsidy one should require that the provider have one. ?
So, she's go a great deal...and has been paying her mom using these 2 ?benefits. ?Long story short -- I emailed HR saying that I was going to do the same thing (my MIL is going to watch DS when I go back to work on the 16th), and they said I can't use either benefit unless she is licensed (they don't know that I know about the set up my lawyer co-worker has...). ?Isn't this BS?? I can't throw my friend under the bus, but why does one person at work get to use the benefits this way, and I can't??? ?WWYD?
Re: Can you say BS - work benefit vent....WWYD?
I don't think licensing should matter. What if you were paying a nanny? A nanny is not licensed, but totallyl deductable as long as you are paying taxes. And, I would guess that they might require a license to cover their a$$es about taxes. But, I think that if you can prove you are paying payroll taxes and your MIL is claiming that as income, you should be ok.
We receive a childcare grant from DH's school, but it can only be used at a licensed daycare. My guess is the reason they do that is because you have the choice to use a licensed daycare, and if you choose not to, they will not help cover your expenses.
Every form I had to fill out requires a licensing ID number.
In order to use your FSA money (the pre-tax 5K), the provider does not have to be licensed. But they do have to claim their income from you on their taxes. Your company is wrong about that.
As far as the other money that the company pays, I don't know what to tell you. They can make their own rules I guess, but obviously what they're saying is unfair. Sorry
I am not sure how it works by you, but here, the daycare provider can NOT be a family member.
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