The way our program works, at the beginning of the fiscal year we designate how much we want withheld from our paychecks each pay period and it goes into our DCAP account. We then have a form that the caregiver signs each week (or month, however often you want to submit a form) AFTER we pay them. Submit the forms, get reimbursed from the account up to the total that you have designated withheld for that year. I didn’t really like having the money taken out, and then paying, and waiting for reimbursement, but it was a nice tax benefit and it was really pretty easy. The caregiver must pay taxes on their income, though, for it to be legal, since they have to provide their tax number on the form.