Dependent Care Benefits

While large corporations may provide 401(k) and medical coverage for their hundred or thousands of employees, a majority of small businesses can't afford to offer such benefits. However, a number of them opt to assist their employees via certain methods approved by the IRS with the use of pre-tax dollars. Like...benefits are an expense of running a business, so they get deducted off the taxable profits line just like raw plastic molds, rent, insurance, coffee grounds for the coffee machine, etc.

Targeted especially for individuals with young children or medically disabled family members who may claim dependent status, these dependent care benefits can be worth thousands annually. Some examples include child care tax credits, flexible savings accounts, health savings accounts, and up to 12 weeks of unpaid leave in order to care for family members.