For child and dependent care assistance provided through an employer plan, an employer is allowed a deduction, and an employee is allowed an exclusion for gross income.The employee's exclusion is subject to an annual limit.

Question

Quizplus · Accepted Answer

This is true. Employers are allowed a deduction for providing child and dependent care assistance through their plans, and employees are allowed to exclude the benefits from their gross income, up to a certain limit each year.

For Child and Dependent Care Assistance Provided Through an Employer