FSA Guide for Employers

Complete guide to Dependent Care FSA

🏛️

FSA DEPENDENT CARE GUIDE

For Employees & Employers

How Flexible Spending Accounts Save Money on Childcare Costs

Generated by ChildCareGrant.com

9/2/2026

What is FSA Dependent Care?

A Flexible Spending Account (FSA) for Dependent Care is a pre-tax benefit account used to pay for eligible dependent care services, including:

✓Child care for children under age 13

✓Preschool and after-school programs

✓Summer day camps

✓Before and after school care

✓Licensed daycare centers

✓In-home caregivers

How Much Can You Save?

Up to $5,000

per household per year (2024-2026)

This is PRE-TAX money, saving you on Federal, State, Social Security, and Medicare taxes.

Average Savings: $1,100 - $1,500 per year per family

How Does It Work?

You elect an FSA contribution during your employer's open enrollment

Money is deducted from each paycheck BEFORE taxes

You pay your childcare provider as usual

You submit receipts to your FSA administrator

You get reimbursed tax-free from your FSA account

Real Savings Calculations

Example 1: Family Making $40,000/year

Annual Savings

$982/year

($82/month)

Example 2: Family Making $60,000/year

Annual Savings

$1,482/year

($124/month)

Example 3: Family Making $100,000/year

Annual Savings

$1,583/year

($132/month)

Calculate YOUR exact savings:

Open FSA Calculator →

Email Template for Your Employer

Copy this email and replace all text in [brackets] with your information from the FSA Calculator.

To: [HR Manager Email] Subject: Request to Enroll in FSA Dependent Care Dear [HR Manager Name], I would like to request enrollment in our company's FSA Dependent Care program for the upcoming plan year. I have used the FSA Calculator at ChildCareGrant.com to calculate my potential savings: MY SITUATION: • Annual Salary: $[Your Salary] • Annual Childcare Costs: $[Your Costs] • Recommended FSA Contribution: $[Amount] • Estimated Annual Tax Savings: $[Savings] QUESTIONS: Could you please provide: 1. Enrollment forms and instructions for FSA Dependent Care 2. Deadline for enrollment 3. Information about our FSA administrator 4. When the benefit will become effective I understand that this benefit will significantly reduce my tax burden while helping me manage childcare expenses for my [number] child(ren). Thank you for your assistance. Please let me know if you need any additional information. Best regards, [Your Name] [Your Contact Information]

💡 Tip: After copying, paste into your email client and replace all [bracketed text] with your actual numbers.

Frequently Asked Questions

Q: What is the maximum FSA contribution?

A: $5,000 per household per year (2024-2026). This limit applies whether you're single or married filing jointly.

Q: Is it "use it or lose it"?

A: Yes. Unused FSA funds at the end of the plan year are forfeited. However, some employers offer a 2.5-month grace period or allow up to $610 to roll over. Check with your employer.

Q: Can I change my FSA contribution mid-year?

A: Generally no, unless you have a qualifying life event such as birth/adoption of a child, marriage/divorce, or change in employment.

Q: Can I use FSA with CCDF (child care assistance)?

A: Yes! FSA and CCDF are complementary. CCDF helps pay for care, while FSA provides tax savings on your out-of-pocket costs. Using both maximizes your total savings.

Q: Can I use FSA for summer camp?

A: Yes, day camps are eligible. Overnight camps are NOT eligible.

Ready to Start Saving?

Calculate your exact FSA savings today

Use FSA Calculator →