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
Act that prohibits insurance companies, group health plans, and health maintenance organizations from establishing lifetime limits or annual limits on mental health coverage that are lower ...
Same as term Coinsurance: ...
Coverage for a mortgagee where real or personal property, used as security for a loan, is damaged or destroyed. For example, a bank (mortgagee) lends money to an individual (mortgagor) who ...
Coverage in the event a school, summer camp, or similar operation suffers loss of tuition because a peril destroys a building. The tuition form reimburses the institution for loss of ...
Addition to a basic insurance policy to further explain coverages, add or exclude perils and locations covered, and add or delete positions covered. For example, an endorsement to the ...
Creation of a demand for a company's products, its distribution, and services for customers who purchase that product. Actuarial research and development, underwriting efficiency, and claim ...
Insurance company's net gain from operations divided by its adjusted surplus. This is the accounting rate of return on stockholder's equity since the ratio shows the rate of return the ...
Type of benefit in which an employee obtains shares of stock in the company, the amount normally determined by the employee's level of compensation. ESOP acts as a leverage tool through ...
Life insurance premium that is not currently due. Future payments are made on a frequency basis other than annual. ...
Have a question or comment?
We're here to help.