Tag Archives: employeer

What Is FSA and How Can It Be Used for Childcare?

Did you know you can get reimbursed for your BFC membership and the BFC nanny placement fees under your FSA (Sometimes called a Dependent Care Assistance Plan (DCAP))?

Ask your employer if they offer FSA. If they do, ask for the form to fill in. Email the completed form to BFC and we will sign, attach a letter and invoice with the amount. Then you will need to submit the completed paperwork back to your employer. That’s it!

What is a FSA?

Some U.S. employers offer their employees a flexible spending account (FSA) or sometimes known as a Dependent Care Assistance Plan (DCAP). This is an employer-sponsored plan that allows you to set aside a portion of your income on a pre-tax basis and then use that money to pay for eligible, employment-related dependent care expenses incurred for a qualifying individual. 

What is the advantage of participating in a dependent care FSA?

Your contributions to these accounts are tax-free, saving you money on federal, state income taxes and Social Security taxes. These FSAs can help you save money on healthcare and dependent care expenses such as childcare.

*Ask your employer how much they will reimburse towards your FSA before you begin. Ask if there is a use it or lose it policy. Many FSA expire by the end of the year, even more reason to use those funds now towards childcare! BFC does not guarantee reimbursements, all reimbursements are determined by an employer.

Dependent Care FSA Information

Looking to hire a babysitter or nanny? Bell Family Company provides fully vetted & FULLY VACCINATED on-demand babysitting, including full and part time nannies, baby nurses, temporary care, help with virtual learning, and more! Learn why BFC is the best childcare agency, with childcare providers available across the U.S. (on-demand service available in the tri-state area). Contact us today to hire!

7 Household Employment Trends to Watch for 2022

In a recent article published by GTM Payroll & HR, they uncover what household employers can expect this year when it comes to employing someone to work in your home (e.g., nanny, housekeeper, in-home senior caregiver).

1. Tight nanny job market: The demand for in-home childcare is unprecedented and does not seem to be slowing down. Nanny placement agencies say in-home caregivers are in extremely high demand calling the job market “highly competitive.” Others say they are experiencing a shortage of candidates with nannies seeing their rates increasing by $2 to $4/hour.

For families, this means not only offering a competitive rate but also presenting themselves as desirable employers. In our recent survey of nannies, working for a trustworthy/ethical family and the personality of the family were more important to them than the rate of pay.

2. Popularity of nanny shares: In a nanny share, two or more families hire a caregiver who will look after all the children in one of the family’s homes. It can help families save on the cost of in-home childcare and provide similar socialization benefits as a daycare for your children, while your nanny can make a little more than their usual rate for a single family.

3. Rising minimum wage rates: Half of U.S. states are boosting their minimum wage rates at some point in 2022. It is important for household employers to check the rate that applies to them as their nanny’s hourly pay could quickly become a wage violation. Paying below minimum wage and not accounting for overtime hours are two of the easiest ways families fall out of compliance with nanny tax laws.

4. Following paid sick and family leave laws: In some states, it can just be a set amount of paid leave you need to offer your employee. In other locations, like New York; Connecticut; Washington D.C.; and Massachusetts among others, payroll contributions to state-run paid leave programs are required from employers and/or employees.

Check with your state’s labor agency to see what paid leave requirements you may have as a household employer.

5. Filing your 2021 taxes: A couple of things may be a little different this tax season if you provided paid sick or family leave for pandemic-related reasons through the American Rescue Plan. In 2021, offering paid leave was voluntary but employers can still take the same dollar-for-dollar tax credit. Also, waiting for COVID-19 test results, obtaining a vaccine, and recovering from the effects of vaccination were added as qualified reasons.

On your employee’s W-2, you will need to indicate the amount of paid leave in box 14. Then on Schedule H, you will reconcile the paid leave provided as well as your employer tax credits.

6. Contribution limits adjusted for 2022: Several contribution limits were updated for the 2022 tax year including:

  1. Dependent Care FSAs return to $5,000 for married filing jointly and $2,500 each for married filing separately
  2. QSEHRA: $5,400 for individuals and $11,050 for family coverage
  3. Health Savings Accounts (HSAs): $3,500 for individuals and $7,100 for families
  4. Retirement Plan: Up to $20,500 in employee contributions to a 401(k) and $14,000 into a SIMPLE 401(k)
  5. Qualified Transportation Benefits: $280 for community and $280 for parking
  6. Student Loans: Employers can provide up to $5,250 tax-free toward a worker’s student loans

7. Another increase to the nanny tax threshold: The employment coverage threshold for household employees gets another small boost to $2,400 in 2022. If a domestic worker meets or exceeds that threshold, Social Security and Medicare taxes must be paid by the family and the employee.

Click here to read the full article from GTM.

Looking to hire a babysitter or nanny? Bell Family Company provides fully vetted & FULLY VACCINATED on-demand babysitting, including full and part time nannies, baby nurses, temporary care, help with virtual learning, and more! Learn why BFC is the best childcare agency, with childcare providers available across the U.S. (on-demand service available in the tri-state area). Contact us today to hire!

Bell Family Company Corporate Care Program

We are a tight-knit, loyal network of hundreds of affluent busy families. We are looking for small and big businesses that want to improve their employee’s benefits with a focus on family and child care. Our Corporate Care Program gives employees access to a unique, elite, ROI-positive benefit at an affordable cost. We offer flexible programs that can be tailored specifically to your business. We are a fully-licensed and insured LLC and equipped to care for children from newborn to 16 years.

Our Corporate Care Program Offers:

• Unique, gold-plated benefit at affordable, per employee cost
• Facilitates access to best-in-class family care
• Powerful employer ROI:

Reduced absenteeism
Increased employee productivity
Alleviates significant source of stress
Promotes employee work-life balance initiatives

Flexible Program Structures:

• Full company sponsorship of annual membership for employees
• Subsidized membership programs
• Pre-paid sitting programs
• Subsidized hourly rate programs
• On-site care available for trade shows, meetings, stadium family rooms
• Access to staff for corporate events such as holiday parties, retreats, team-building programs, etc.

Your company or organization can sign up for no cost to you. To get started or for more information, please contact us, we’d love to speak with you!

Written by Founder & Owner, Lindsay Bell