Dependent Care Assistance Plans (dcap)
Definition of "Dependent care assistance plans (dcap)"
Fringe benefit provided by the employer to its employees as sanctioned under the 1981 Economic Recovery Tax Act. Under Internal Revenue Code Section 129, this benefit is nontaxable to the employee and the costs incurred by the employer are considered tax deductible as a necessary business expense. The dependent under DCAP is defined as a dependent child under age 15, a dependent elderly relative, or a dependent mentally and/or physically handicapped individual. DCAP can be implemented through a salary reduction program under which the employee can choose to reduce his or her salary up to a maximum of $5000 annually for dependent care-related expenses. A current employee benefit insurance plan can be amended to include DCAP, thereby making the benefit available to all employees. DCAP permits the employee to select the type of dependent care program that he or she prefers.
Popular Insurance Terms
Background information used in life and health insurance underwriting to ascertain the probability of hereditary disease. The purpose is to determine if the disease is of such a nature that ...
1890 law prohibiting monopolies and restraint of trade in interstate commerce. The Sherman Act was strengthened in 1914 with amendments known as the Clayton Act that added further ...
Coverage for direct or indirect property loss that can be analyzed under the following headings: Peril a particular peril may be included or excluded. For example, the Standard Fire Policy ...
Plan under which an employee authorizes his or her employer to deduct from each paycheck premiums due on an insurance plan. ...
Insurance company's total premium income plus investment income. ...
Protection for the assets of a business (including merchandise for sale, real property, money and securities) in the event of robbery, burglary, larceny, forgery, and embezzlement. Coverage ...
Provision of liability insurance that excludes coverage for dishonest acts of an insured. ...
Arrangement under which the insured pays a fixed premium to the insurance company in exchange for the total transfer of the risk to that company. ...
Extension of coverage available under the Standard Fire Policy. The standard policy only covers the perils of fire and lightning. The endorsement covers riot, riot attending a strike, civil ...
Have a question or comment?
We're here to help.