Contact the Internal Revenue Service or your tax advisor for further information or advice on this plan as necessary. Complete and detailed information on options will be provided to each law clerk at the time of selection or during employee orientation. The deduction for these supplemental benefits is taken from the employee's gross pay. Three plans are available. They vary in the waiting period required before payments start and also in the amount paid.
Cost depends on the plan elected.
The employee may designate an amount to be placed in a reimbursement account whereby they can be reimbursed with pre-tax dollars for care of elderly parents, a handicapped spouse or child care. Currently the Internal Revenue Service allows a tax credit for dependent care. However, expenses reimbursed by this plan are NOT eligible for the tax credit. Employees should give careful consideration to the relative financial benefits of these options. The professional advice of a tax advisor would be very helpful in deciding which option to select.