Forms & Publications
Dependent Care Assistance Program (DCAP)
The Dependent Care Assistance Program (DCAP), administered by Benefit Strategies effective November 1, 2009, allows state employees to pay for certain dependent care expenses with pre-tax dollars. Participating in DCAP can significantly reduce your federal and state income taxes. Through DCAP, participants may pay on a pre-tax basis for qualified dependent care expenses -- such as child and elder care, after school programs, and day camp. Download the list of eligible expenses 
and the HCSA/DCAP Brochure for details and an overview, respectively. The program allows a participant to contribute up to $5,000 per family annually on a pre-tax basis as a payroll deduction. For taxpayers in a 28% income tax bracket, a $5,000 contribution to the DCAP would save an estimated $1,400 in taxes.
DCAP Enrollment
New Employees
New employees may enroll for partial year benefits. For DCAP, coverage begins on the first date of employment.
Open Enrollment and Enrollment During The Year
The DCAP and HCSA plan year is January through December. Open enrollment for these programs will take place October 5 - December 4 for 2010 calendar year benefits. You must re-enroll each year. Employees who have a “qualified” family status change during the plan year, as outlined on the enrollment and change form may enroll during the year. New employees joining from sheriffs departments and transportation (MBTA and Mass Turnpike) may enroll during the special GIC open enrollment period.
For the 2010 calendar year, the monthly administrative fee for HCSA alone, DCAP alone, or HCSA and DCAP combined will be $3.60 on a pre-tax basis.
It is important to estimate your expenses carefully -- the Internal Revenue Service requires that you forgeit any unused funds at the plan's year end.
Dependent Care Assistance Program (DCAP) Questions?
Contact Benefit Strategies
1-877-FLEXGIC (1-877-353-9442); flexgic@benstrat.com
Eligibility
Active state employees who work half-time or more and have employment-related expenses for a dependent child under the age of 13 and/or a disabled adult dependent are eligible for DCAP benefits.
DCAP Questions and Answers
What is DCAP?
The Dependent Care Assistance Program (DCAP) is a benefit that allows active employees to deposit money into an account on a pre-tax basis to use for dependent care or elder care expenses. Each January, you can elect up to $5,000 per year to pay for these expenses. Each pay period, a proportionate amount is taken out of the participant's paycheck before taxes are calculated. As you incur the expenses, submit your receipts for reimbursement through direct deposit to your bank.
Under Section 21 of the Internal Revenue Code, taxpayers can receive a tax credit for work-related expenses incurred for the care of a dependent child under the age of 13 and/or a disabled adult dependent while the taxpayer and spouse are working or gainfully seeking employment. You may contribute up to $5,000 per year per family or the lower paid spouse's income, whichever is lower. For additional details, download the 2009 DCAP & HCSA Handbook 
.
Why is DCAP Beneficial?
Because it can save you money. Every dollar that you deposit to the DCAP Plan is done on a pre-tax basis. The amount you elect will be deducted from your "gross" wages. This means that DCAP contributions are deducted before federal income taxes.
When can one enroll in DCAP?
While most GIC benefits are tied to the fiscal year, DCAP benefits are on a calendar-year basis. Therefore, enrollees must enroll in the fall for the following year calendar year benefits. You may also enroll in DCAP if any of the following occurs:
- Marital status change (as defined by the Federal Government, not the Commonwealth)
- The number of your dependents changes
- You change jobs
- Reduction in work hours
- Residence change
How do I get reimbursed for my dependent care expenditures?
As you incur qualified expenses, file a claim for reimbursement with using a DCAP Claim Form. All submitted claims must be accompanied by supporting documentation noted on the claim form.
A new claim form for Benefit Strategies will be available by November 1.
When will I be reimbursed?
Claims are processed daily and reimbursed weekly. You will receive a confirmation slip for every reimbursement deposited to your account.
What if I don't use all of the money elected to DCAP?
If the annual election is not used by the end of the tax year, according to IRS requirements you forfeit the remaining account balance. However, you have a 2 1/2 month grace period after the plan year ends to incur expenses and submit claims for reimbursement. The GIC recommends that you carefully evaluate your estimated annual dependent care expenditures when you enroll.
Learn about and manage your DCAP account online:
- Account Balances
- Claims Received
- Claims Processed
- Dates when Checks were Paid
- Download Forms
Questions about managing your account online? Contact Benefit Strategies at 1-877-FLEXGIC (1-877-353-9442)
Download the DCAP Handbook 2010
This information provided by the Group Insurance Commission.