How do dependent contributions work?

Employers can choose to give employees with dependents a higher monthly allowance. This is often called dependent contributions or family scaling.

It works by setting:

• a fixed dollar amount per dependent

• a maximum number of dependents that can be counted

  
  

Both amounts are chosen by the employer during setup.

Example:

Dunder Mifflin offers Full-Time employees a $400 monthly allowance plus $200 per dependent, for up to 3 dependents.

Paul is a Full-Time employee with 2 dependents, so his maximum monthly allowance would be $800 ($400 base + $400 for dependents).

What this means in practice:

• Employees with families can receive more support than employees with individual coverage.
• Employers stay in control by setting the per-dependent amount and cap.
• The ICHRA portal walks employers through setting this up during enrollment.