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Contact Information
Provess Flexible Benefits
4050 Katella Avenue, Suite 213
Los Alamitos, CA 90720
Phone: (866) 639-5289
E-Fax: (866) 264-4093
E-mail: admin@provess.com
Palm Springs and Midwest Locations...
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DEPENDENT CARE BENEFIT
Reimbursement Account
Qualified benefits under this category include dependent child care expenses. This allows eligible employees to have their dependent i.e., child care expenses taken out of their paycheck on a tax-free basis. This benefit should save you a minimum of 25% of your dependent care expenses. Your children or dependents must be under the age of 13 (or of any age that are mentally or physically incapable of caring for themselves) and cared for by someone with a Social Security care or Federal Tax I.D. number. Under your plan, each year you can use up to $5,000 pre-tax, whether you have one or more children. In order to be reimbursed, you need to submit the completed voucher that you receive each month. The monthly voucher also provides you with the up-to-date balance of your account.
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Without
125 Plan |
With
125 Plan |
| $2,000 Salary |
$2,000 Salary |
| $ -500 Taxes (25%) |
$ -400 Dependent Care |
| $1,500 |
$1,600 |
| $ 400 Dependent Care |
$ -400 Taxes (25%) |
| $1,100 |
$1,200 |
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You Save $100 |
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The example above is only for illustration purposes. Your individual savings could be higher or lower.
Terms and Conditions
Dependent Care refers to the care of a dependent under the age of 13 (or of any age who are mentally or physically incapable of caring for themselves), who regularly spend at least 8 hours per day in your household and are declared as dependents on your tax return.
The allowed expense cannot exceed $5,000 of your annual income or your spouse’s annual income, whichever is lower, not to exceed the lesser of the two incomes. The expense is necessary for either you to work, or, if married, you and your spouse to work, unless your spouse is a full-time student or incapable of self-care.
The expenses may not be paid or payable to any of your children who are under the age of 19 at the end of the year in which the expenses are incurred or to an individual who is declared as a dependent on your tax return.
If the expenses are incurred for services provided by a dependent care center (i.e., a facility that provides care for more than six individuals not residing at the facility), the center must comply with all applicable state and local laws and regulations.
You cannot use the child care credit on your personal income taxes at the same time as the dependent care account under the cafeteria plan.
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Flexible Benefits
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January 2010