Employees may contribute funds to a Dependent Care Spending Account through pre-tax payroll deductions and withdraw the funds tax free to pay for qualified child care expenses. Funds can by used to pay qualified expenses incurred between October 1 and December 15 of the following year. Coverage is scheduled to begin October 1, or, if hired after October 1, following your thirtieth (30) consecutive day of employment.
Once the employee designates how much he/she wants to contribute during the open enrollment period, the employee is not allowed to change the amount or drop out of the plan during the plan year unless he/she experiences a change of family status.
The maximum amount an employee can contribute annually is $5,000 including any contributions made through a spouse’s plan. If an employee and spouse file separate federal income tax returns, the individual dependent care reimbursement account limit is $2,500. The funds can be used to reimburse all qualified expenses for eligible dependents. Funds are only available as money is put into the account via payroll deduction. By law, the employee forfeits any unspent funds in the account at the end of the plan year.
Employees will receive a debit card which can be used at the point of service. Claims can also be filed online, by mail, or by fax. Employees must retain documents that support and validate debit card transactions. In some cases, employees may be required to submit the receipts or records to substantiate a claim.
Go to tasconline.com manage your Dependent Care Spending Account.