What happens if a DCAP fails the nondiscrimination test?

Share it:

Category: Benefits & Compensation

Tags: Fringe Benefits, Employee, Discrimination, Dependent Care

If a DCAP fails to pass the nondiscrimination requirements, highly compensated employees must include the value of the benefits received in income. Non-highly compensated employees remain eligible for the DCAP exclusion, even if the plan is found to be discriminatory.

Reprinted with permission. © CCH

What happens if a DCAP fails the nondiscrimination test? If a DCAP fails to pass the nondiscrimination requirements, highly compensated employees must include the value of the benefits received in income.

Please Login

You are currently not logged in. Please login for full content.


Email Address *
Password *

Or click here to sign up today!

As a registered user, you get member's only access to these valuable resources and more:

742 forms and checklists for everything from the objectives of a benefits program to facilitating an employee’s return to work after an injury
1,820 state law documents to keep you updated on laws that govern your business
1,400 Q&A's for all your HR queries
Up-to-the-minute HR news, trends and information
Timely case studies and whitepapers
Monthly Newsletter

Registration is quick and easy, so take advantage of all HRTools has to offer and sign up today!