Agency Fee for Child Care: FSA Eligibility

Agency Fee for Child Care: reimbursement is not eligible with a Flexible Savings Account (FSA)
An agency fee for child care reimbursement is not eligible with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA) or a limited-purpose flexible spending account (LPFSA). An agency fee for child care reimbursement is eligible with a dependent care flexible spending account (DCFSA) when the child care is for a qualifying dependent of the account holder and when it allows the account holder and their spouse to be gainfully employed or to be seeking gainful employment.

What agency fees are eligible for reimbursement?

Parents have a large amount of options when it comes to the care of their children, and some will turn to nanny agencies as a means of finding a safe, reliable caretaker for their children. A nanny agency is designed to make the process of finding caretakers as seamless as possible, so parents can make informed choices with pre-screened individuals who have a record of success in child care, so they do not have to continually interview candidates that may be poor fits. This ensures that parents' work schedules and other obligations are not interrupted and the best fit can be found quickly (The Federal Flexible Spending Account Program).

Other important duties of nanny agencies are creating job descriptions for the job at hand to ensure that they find the right candidates to suit the parents' needs. Additionally, they offer services including reference checking, sourcing candidates, conducting interviews and even drawing up contracts so that nannies can get on the job as quickly as possible and maintain a standard of care.

Nanny agency fees can vary greatly from agency to agency, but if parents have enrolled in a dependent care flexible spending account, these fees are eligible for reimbursement. Parents can find these agencies in their area by consulting the resources of the International Nanny Association (INA) and the Association of Premier Nanny Agencies (APNA).

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