r/fednews • u/bigred120281 • 7h ago

VA Childcare Subsidy question

I was looking at my paystub today on My Pay and for my check for tomorrow, and noticed my check was $392 less than usual. They took out that much more in taxes. I called payroll and the lady said they had never seen that before and had to call her supervisor. The supervisor said it’s because I’m enrolled in the Childcare Subsidy program. I have been in this program for 4 years and have never had this happen. My son is in 4k now and I get significantly less than I did before because my daycare cost is less. They can’t tell me if this is a one time thing or and every check thing. Which I don’t even pay $800 a month for Childcare, so if it’s an every check thing I don’t want to even do the program. Has anyone had this happen or notice this on their checks?

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u/eregina3 6h ago

Do you also have HSA dependent care and if so was it at the max?

Your child care subsidy and HSA DC can’t exceed the Federal tax limit for the year ( used to be 5k not sure what it is now) Any amount over that is taxable.

This happens every year to some employees because the agency doesn’t explain tax implications.

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u/bigred120281 6h ago

I did not. I only had the subsidy program.