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| Mar 2005 Volume IV, Issue 3 | Editor: Melissa Vinson, CFCI |
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DataPath Employees Lobby Successfully for Increase in DCAP ContributionsWhile attending the Legislative Conference of the National Association of Professional Benefits Administrators in Washington DC, DataPath employees Jason Lee and David Wise made a side trip to Capitol Hill to meet with their Congressional representatives to discuss several issues of importance in our industry. Foremost of these was increasing the contribution level for Dependent Care Assistance Program (DCAP). The current $5,000 DCAP limit has been in effect since 1989 despite a significant increase in dependent care costs since that time. While the 2001 tax bill increased the Dependent Care Tax Credit (DCTC) limit by $1,000 to $3,000 for one child and $6,000 for two, it did not raise the DCAP amount. (We know from our readers' comments that they are concerned that this disparity in contribution levels could cause employees to drop their DCAPs and turn to DCTCs.) Lee and Wise met with Terra Sabag, Congressman Vic Snyder’s Legislative Assistant for Labor. Two weeks after their meeting, Snyder (D-AR) announced that he would co-sponsor HR 1275 (Working Parents Child Care Assistance Act) which will increase the DCAP contribution level to $6,000 from its current level of $5,000. This would bring the DCAP allowance in line with the amount that parents can claim through the Dependent Care Child Tax Credit.
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| LEGAL DISCLAIMER:
Material contained in this newsletter is not legal advice, and should
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