The Dependent Care Assistance Program (DCAP), administered by Benefit Strategies, allows state employees to pay for qualified dependent care expenses for a child under age 13 and/or a disabled adult dependent - including day care, after-school programs, elder day care, and day camp - on a pretax basis.
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 Federal and State taxes.
Eligibility and Monthly Fee
Active state employees, including contractors, who work half-time or more and have employment-related expenses for a dependent child under the age of 13 and/or an adult dependent are eligible for DCAP benefits.
For the 2014 calendar year, the monthly administrative fee for DCAP alone, HCSA alone, or HCSA and DCAP combined is $3.60 on a pre-tax basis.
New state 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 be held October 14 - December 5, 2014 for 2015 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.
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.
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. There is a 2 1/2 month grace period after the plan year ends (March 15 of each year) to incur expenses to be applied to the prior year balance. You have until April 15, 2014, to submit claims for any remaining 2013 balances.
Online Account Access
Learn about and manage your DCAP account online:
- Account Balances
- Claims Received
- Claims Processed
- Dates when Checks were Paid
- Download Forms
Dependent Care Assistance Program (DCAP) Questions?
Contact Benefit Strategies
This information provided by the Group Insurance Commission.