Mayo Clinic News Network Headline 5/11/15

How does it cost $167/day for 1 child to use Mayo Backup? That's almost double the rate of a daycare center rate here in Rochester.

We contribute $5,000 into the Dependent Care Flexible Spending Account, therefore we will met our $5,000 limit. If we use R & R or the Employee Back up Care in 2018, those costs be added as taxable income to my paycheck the following month care was received? Thanks for confirming, I want to ensure I am understanding this change correctly.

Should the on-site child care costs at the Dan Abraham Healthy Living Center in Rochester be added to the chart above? I imagine the costs to staff are subsidized.

This is such a great recourse for those of us who like to have home care for our loved ones.

If I am understanding correctly it seems that if you pre elect to put the maximum $5,000 in the Dependent Care Flexible Spending Account you can expect to "pay" for each visit to R&R or backup care that happens during the year by being taxed for the daily service as income, correct? What about those who utilize backup care or R&R who have not opted to place money in the Dependent Care Flexible Spending Account? It seems if they utilize these services they can expect a sort of "auto generated" flex spending for the first $5,000 – Can you clarify? I'm just trying to do the math – depending on an employees tax bracket the cost for a "free" (no-copay) day of R&R for your kid could actually cost 40-60 dollars if you exceed the 5,000 limit (planned contribution or not). Is this related to the changes in the tax legislation that were just signed into law? While I appreciate the information it certainly doesn't seem "simple" as compared to years past.

Is this stemming from the recent 2018 tax legislation, a change in how Mayo is filing income/deductions, or something that should have always been handled this way and was missed?

I understand that this is not Mayo's doing but I wish this decision would have been made prior to our open enrollment. The cost to send my child to back-up for a week is now going to cost me more than it would to send her to her day care. Had I known, I would have elected to contribute less. I guess something to consider next year.

Is the cost in Arizona for in-home care honestly $39.87/hr per child? I have used the exact same agency that came (College Nannies and Tutors) for non-Mayo related care and it is $19/hr for me to pay out of my pocket for the service. If they are truly charging you that amount, it is not a good deal. I did not elect the full $5000 for Dependent Care FSA so it sounds like it will not impact me, but I was just wondering.

If we do not elect to the 5,000 for dependent care from our checks but use these services then we are not effected by this, is that correct? Even if our spouse who does not work for Mayo Clinic did elect the $5,000?

That's employer cost. Your out of pocket expense is only a copay of $8/hr.

Good question. I am in the same boat. My husband will take out the dependent care spending at his employer. If I use Mayos services of R&R and backup childcare, will it then come out when I file taxes the following year? I understand if we use less than the 5K, we won't be taxed but who is finding childcare for less than 5K a year for full time care? Nobody. This is complicated. Can the article be linked to when this information first came out?! Thanks.

http://newsletters.mayo.edu/newscenter/Article.aspx?contentID=DOCMAN-0000172725 – Came out Oct. 27th.

Julia, I think what they are saying is that the IRS allows up to $5000 to be tax-free (whether or not it's coming from a tax-free dependent care account off your salary or a benefit gained by an employer subsidizing the care expenses). From what I read, you cannot both elect $5000 each. It's $5000 total. https://ttlc.intuit.com/questions/3405824 The purpose of it is to give a flat $5000 tax break to parents with young children, regardless of how you are getting the tax break.

I realize that Mayo is just following regulations, but this "benefit" is really not much of a benefit anymore if you are already using the dependent care account.

With all the news about the 2018 tax reform laws, I'd like to know about changes that impact me as a Mayo Clinic employee. I realize that my employer cannot offer tax advice, but I'm sure there are items that impact us as employees. For instance, do I need to fill out another W4? Anything I need to do or complete?