Dependent Daycare Question for Parents

[Guest chancelb]

Does anyone know the answer to this question from one of our employee's?

I currently have money coming out of my check for my dependent mother's day care. I just found out that she is going to need surgery and then rehab so she will not be able to attend day care for a few months. Is there any way that we can stop withholding for dependent care from my check?

Thanks.

[Guest jackmo]

Yes--you will HAVE to stop the payroll deductions. There is no longer a legal reason for the employee to get the tax break. It's a change in status event. This could be interpreted to be a "change in cost" event due to a change in providers. She will be moving from a provider that charged a day care fee to a provider that charges a fee, but that fee will be paid by health insurance. So your employee's cost is moving from XX dollars to "free" (no dollars) for daycare.