| Employees may use pre-tax dollars to fund accounts from which they can pay
medical and dependent care expenses, thus achieving a tax savings.
Medical Care Assistance Plan
(MCAP)
Allows the employee to save tax dollars on health care expenses, such as eyeglasses, crowns and bridgework, and medical deductibles, that are not fully covered by the state-paid health and dental plans.
Dependent Care Assistance Plan
(DCAP)
Provides for coverage of child or elder care expenses with tax-free dollars.
Each plan allows for payroll deductions from $240 to $5000 per year. The plan year runs from July 1 through June 30. Employees may only participate in
these plans during months they are on payroll. Since federal regulations require that any unused money in MCAP or DCAP accounts must be forfeited
at year end, employees should avoid depositing amounts in excess of projected expenditures. |
