Every dollar employees contribute to a Dependent Care FSA reduces your FICA tax bill. See the impact in seconds.
DCFSA contributions are deducted pre-tax. You save the full 7.65% employer FICA match on every dollar contributed.
Working parents rank dependent-care benefits as a top retention driver. SitterSync removes the paperwork friction so employees actually use their DCFSA on caregivers they already trust.
DCFSA participation costs the employer nothing to offer. It doesn't just pay for itself — it generates net savings from day one.
Adjust the inputs to model your current state and projected improvements.
| Current | Projected | Delta | |
|---|---|---|---|
| Participating employees | - | - | - |
| Avg. contribution | - | - | - |
| Total contributions | - | - | - |
| Employer FICA savings | - | - | - |
| Avg. employee tax savings | - | - | - |
Most companies leave money on the table because employees don't understand or don't use their DCFSA. Here's how to change that.
The annual benefits email gets skimmed and forgotten. Run short, specific sessions during open enrollment that show real dollar amounts: "If you spend $800/month on childcare, DCFSA saves you $2,700 in taxes." Concrete numbers convert. Generic brochures don't.
Many employees know about DCFSA but don't bother because tracking receipts, collecting provider tax IDs, and filing reimbursement claims is painful. SitterSync eliminates that friction entirely — employees pay caregivers they already know, and SitterSync handles receipts, tax documentation, and compliance automatically.
New parents are obvious candidates, but don't stop there. Parents of school-age kids still pay for before/after-school care, summer camps, and babysitters. Employees caring for elderly parents qualify too. Segment your communications by life stage instead of blasting one message to everyone.
DCFSA funds don't roll over. Send quarterly check-ins showing employees their balance and eligible expenses they might be missing. A simple "You have $2,100 remaining — here's how to use it before December 31" drives utilization and builds confidence to re-enroll at higher amounts.
Managers are the most trusted source of benefits information for many employees. Equip them with a one-pager they can share in 1:1s, especially with parents returning from leave or employees going through major life events. It doesn't need to be HR-led every time.
Frame DCFSA internally as a win-win. When leadership sees the FICA savings number (use the calculator above), they're more likely to invest in the education and tooling that drives participation. Every dollar of budget spent increasing enrollment pays for itself in tax savings.
This is the single biggest reason DCFSA participation drops off — and it's wrong. When children leave daycare and start school, many parents assume the benefit no longer applies. In reality, the costs don't disappear. They just shift.
School-age children still need care outside of school hours and during breaks. All of the following are DCFSA-eligible expenses:
A family paying $200/week for after-school care and a Friday night babysitter is spending $12,000+ per year — well above the $7,500 DCFSA cap. They should be maxing out their contribution, but most aren't because they think DCFSA is "just for daycare."
The fix: stop saying "childcare benefit" in enrollment materials. Say "dependent care benefit" and list specific examples by age group. And give employees a tool like SitterSync that makes it effortless to use DCFSA funds on the babysitters and caregivers they're already paying out of pocket.
Everything you need to know about DCFSA and employer savings.
SitterSync lets employees pay caregivers they already know and trust with their pre-tax DCFSA funds — no chasing receipts, no tax ID headaches, no reimbursement forms. More utilization means more FICA savings for you.