The Lab is subsidizing some of the cost of this service to help reduce the amount employees pay. Employees will be charged:
- $15/child with a maximum of $25/family per visit for center-based care during the center's normal operating hours
- $6/hour per caregiver for in-home care; no additional charge for evening/weekend care (4-hour minimum, up to 3 dependents)
- Additional charge of $50/hour for medical care
Employees pay Bright Horizons directly using a credit card or debit card, payable at the time of reservation.
Dependent Care Flexible Spending Account (Dep-Care FSA) can not be used for this service.
TAXABLE BENEFIT
The Backup Care program provides employees with certain types of dependent care charging a co-pay that is less than the market rate for these services. The difference between the market rate and the employee co-pay is considered a taxable benefit and treated by the IRS as additional income to the employee.
The market value is based upon national averages and will be reviewed and adjusted annually. The following is the current market values for the following services:
- Center care: $80/day
- In-home care: $27/hour
The amount of tax paid is dependent upon the tax bracket of the individual.
The additional income is reported monthly as Other Income on the employees paycheck and will be subject to the following taxes:
- Medicare
- OASDI – Social Security
- Federal income tax
- State income tax
