This Fort Worth employer offers a childcare benefit that’s growing in popularity
A Fort Worth employer recognized for its family-friendly policies offers a benefit that a local expert calls a “no-brainer” with helping to retain parents who are juggling expenses such as childcare.
Recaro Aircraft Seating Americas in far north Fort Worth is among a growing number of employers to provide dependent care Flexible Spending Accounts, or FSAs, which have become more common in the aftermath of the COVID-19 pandemic, according to Lone Star Benefits President Heather Bowers.
As employers are looking to incentivize employees to return to the office, this is a benefit that can alleviate costs for working parents at a minimal cost to employers, she said. The employer pays a fee to a third-party provider that administers the FSA, and the employee chooses the amount of pre-tax dollars they wish to contribute to the account. Employees can contribute up to $7,500 per year to help pay for childcare, preschool, summer day camp, before- or after-school programs and more.
“More employers than ever, I would say, are looking at implementing dependent care FSAs,” Bowers said. “Employees are taking more money home each year, and then the employer, of course, is saving on their payroll taxes that they can help to offset merit increases, bonuses or just overall benefits — however they want to spend that savings.”
Recaro has offered this benefit to its employees for at least 15 years, and about 25% of employees are currently utilizing this FSA, said Recaro Human Resources Manager Kenya Byrd. There were more than 400 employees at the company’s Fort Worth location as of 2018.
Magdalena Melendez, a Recaro employee, said she has been contributing to the dependent care FSA for about a year and a half to help pay for about 10% of her daughter’s childcare tuition. She attends a center full time while Melendez and her husband work full time. The cost savings have allowed them to save toward the healthcare costs of having their second child, who they are expecting this summer.
Melendez noted that she doesn’t have family nearby who could care for their daughter while she and her husband are working, so a community childcare provider was the best option for them.
“It removes so much financial stress from us, and it allows me to allocate those costs and that money to some other expenses. Because nowadays, having a baby is a very high expense to maintain. So that was a very important support from Recaro in such a very important time of my life,” she said.
Bowers noted that the Internal Revenue Service cap for dependent care FSAs increased this year from $5,000 to $7,500, which is another advantage for both working parents and their employers during a time when inflation has strained wallets while the cost of childcare has skyrocketed, she said.
In Texas, the average annual cost of center-based care in 2026 is between $10,000 and $11,000, according to TOOTRiS, an online platform that connects families, childcare providers and employers.
Bowers underscored how dependent care FSAs are a use-it-or-lose-it type of account where the money will be forfeited to the employer if it’s not spent.
“It’s a no-brainer to offer it,” she said.
Recaro also offers a free car seat or stroller to new parents and has lactation rooms onsite for nursing mothers. The company has been recognized by the Best Place for Working Parent and Dallas Regional Chamber for its family-forward policies. Byrd said these policies affect retention, engagement and productivity of its workforce.
“We are committed to creating a workplace where parents feel supported, valued, respected, trusted and able to really thrive, both personally and professionally… Not just through a policy, but through practice, right? So putting your money where your mouth is. It has to be intentional on our part,” Byrd said.
