Comptroller Promotes Pre-tax Dependent Care Assistance Program
|Contact: Bob King|
|860-703-3311 or 860-702-3300|
State employees who spend money on day care for their dependents can meet such expenses with pre-tax earnings, State Comptroller Nancy Wyman said today in promoting the voluntary benefit.
The Dependent Care Assistance Program, similar to others widely used in the private sector, allows employees to deduct dependent care expenses from their gross wages before taxes are taken out.
Wyman is encouraging all eligible employees to consider participating in the program. "This is a terrific way to manage dependent care expenses while at the same time saving money," Wyman said.
The program is administered by Colonial Life and Accident Insurance Co. "The monies are exempt from federal and state taxes, as well as Social Security," Wyman said. "The state saves as well by not having to pay its share of the Social Security tax on the deduction."
An open enrollment is scheduled for Nov. 1-30.
The program is available for dependent children under age 13, invalid spouses or invalid elderly dependents who spend at least eight hours a day in an employee's home. The dependent care must enable an employee and his or her spouse to be employed. Working single parents qualify for the program as well.
Depending on filing status, married couples can cover up to $5,000 in dependent care expenses under the plan.
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For Immediate Release
October 30, 1996
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