Human Resources & EO
Dependent Care Assistance Program
This benefit is designed to help reduce your childcare and elder care costs. This program allows you to set aside up to $5,000 of your income on a pre-tax basis to pay for childcare or other dependent care expenses. Eligible Dependent Care expenses are defined as those that enable the participant and the participant's spouse to work or to look for work. A summary of some expenses is provided below:
1. Child care centers that care for six or more children and meet the IRS's definition of a qualified day care center
2. Caregivers for a disabled spouse or dependent who lives with the participant
3. Babysitters
4. Nursery schools
5. Day Camp
6. Late pick up fees
7. Before or after school (not tuition)
8. Housekeeper care for an eligible dependent
9. Au Pair placement fees and weekly stipend
Unlike the Health Care Spending Account (HCSA), the Dependent Care Assistance Program (DCAP) expenses cannot be reimbursed unless you have the money in your account.
A qualified dependent for both the Health Care and Dependent Care programs is a person that you claim on your Form 1040 tax return as a "dependent". For purposes of the Dependent Care plan, a "qualified dependent" must also be under age 13. However, if a dependent is mentally or physically handicapped, he or she will remain a qualified dependent for the Dependent Care irrespective of age. A dependent can also be an adult parent, if you claim the parent as a dependent for tax purposes. Note: In compliance with the IRS guidelines, the service provider cannot be an individual for whom a personal tax exemption may be claimed. In addition, a child of the participant or spouse cannot be under the age of 19.
It is important to estimate carefully as the Internal Revenue Service requires that any unused funds at plan year-end be forfeited. A new IRS regulation which starts in plan year 2005 provides for a 2½ month "grace period" at the end of every plan year which allows participants to spend down any unused contribution from the end of the plan year to March 15 of the next year. For example, if you have a $100 left over in your HCSA at the end of your plan year, you may still incur eligible expenses until March 15 of the next calendar year that may be applied to your remaining HCSA balance of $100. The cost to administer this program is paid for by each employee on a before tax basis. There is an administrative fee of $3.60 per month for either HSCA or DCAP alone or DCAP and HCSA combined.
Benefit Strategies Contact Information:
Benefit Strategies is the contracted provided for the administration of both Flexible Spending Account Programs:
Customer Service: 1.877.353.9442
Email Problems to: lfarr@benstrat.com
Forms: http://www.benstrat.com/forms_resources.html#flex
http://www.mass.gov/Eoaf/docs/gic/hcsadcapforms/HCSA_DCAPeligibleExpenses2011.doc
To Setup Direct Deposit:
You have the choice of receiving your reimbursement directly to your home address or setting up direct deposit by going to Log in using your username and password. If you are a new user, please click New Users Register Here. Once logged in, click Direct Deposit on the left hand side of the screen. Fill in the appropriate information and then click submit. For open enrollment, sign up after December 19 or 20 days after enrolling during the year. To complete a direct deposit form go here: http://www.benstrat.com/downloads/FLEX_DD_authorization.pdf
Statements Online:
Remember to setup your account so that you can review your claim information online by going to http://www.benstrat.com and under Client Link on the left side of your screen click the Commonwealth of Massachusetts Group Insurance Commission logo. Then click on the GIC Participant Login. You will find directions on how to login and also find Quick Links to the GIC for HSCA and DCAP as well as Forms and Resources. If you have any problems call Benefit Strategies at LLC Customer Service at 1.877.353.9442).
Remember to save all receipts for any dependent care in case you are audited.
