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
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 ...
Risk management technique for identifying risks and taking steps to minimize losses. ...
Same as term Comprehensive Insurance: complete coverage for hospital and physician charges subject to deductibles and coinsurance. This coverage combines basic medical expense policy and ...
Rule concerning stock sold and then repurchased or a similar security repurchased (warrants or options) within 30 full days before or after the day of the sale. Losses established from such ...
Option clause in a disability income policy that the insured can exercise that would permit the insured the right to purchase additional limits of coverage regardless of the insured's ...
Rule that stipulates how to calculate the actual cash value of property that has been damaged, destroyed, or stolen. The thesis of this rule is that whatever evidence that can be produced ...
Coverage underwritten on members of a natural group, such as employees of a particular business, union, association, or employer group. Each employee is entitled to benefits for hospital ...
Regulation named after a former Superintendent of Insurance of New York State, and instituted in the early 1900s. It requires every insurer admitted to New York to comply with the New York ...
The term mutually exclusive defines an instance when the occurrence of a specific event makes the emergence of another event impossible. Then, two or more things can be described as ...
Have a question or comment?
We're here to help.