How does a FSA work? Watch this Video.
The Dependent Care Assistance Program (DCAP), administered by ASIFlex, allows state employees to pay for qualified dependent care expenses for a child under age 13 and/or an 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 2015 calendar year, the monthly administrative fee for DCAP alone, HCSA alone, or HCSA and DCAP combined is $2.50 on a pre-tax basis.
New state employees, including MBTA, Valley and Charms Collaborative Employees joining the GIC for the first time, may enroll for partial year benefits. For DCAP, coverage begins on the first date of employment.
HCSA & DCAP Enrollment Will Transition to Fiscal Year in 2016
Open Enrollment: October 13 – December 4, 2015 for Half-Year Benefits
The HCSA and DCAP plan year will be changing from a calendar year to a fiscal year in 2016 to coincide with other GIC benefits. Open enrollment for these programs will take place October 13 – December 4, 2015 for the short plan year of January 1 – June 30, 2016. For the short plan year, the maximum election amount for HCSA will be $1,275 and the maximum DCAP elections will be $2,500. During the GIC’s spring 2016 Annual Enrollment period, state employees will be able to enroll in FSA benefits for the 12-month fiscal year of July 1, 2016 – June 30, 2017. Participants must re-enroll each open enrollment period using the online enrollment form.
How do I get reimbursed for my dependent care expenditures?
As you incur qualified expenses, file a claim for reimbursement using a DCAP 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, 2015, to submit claims for any remaining 2014 balances.
Manage your DCAP account online:
- Account Balances
- Claims Received
- Claims Processed
- Dates when Checks were Paid
- Download Forms
- Online Account Access
Dependent Care Assistance Program (DCAP) Questions?
Contact ASIFlex: 1-800-659-3035
This information provided by the Group Insurance Commission .