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Dependent Care Assistance Program Benefits (DCAP)

If you’re an active state employee, you can save money by paying for qualifying dependent care expenses on a pre-tax basis.

The Dependent Care Assistance Program (DCAP) allows state employees to pay for qualified dependent care expenses for a child under the age of 13, a disabled child age 13 or older, and/or an adult dependent – including day care, before- and after-school programs, elder day care, and day camp – on a pre-tax basis. You
may elect a tax year DCAP contribution of up to $2,500 if married and fling separately or $5,000 per household. In keeping with state statute, to participate in DCAP, you must be an active state employee and eligible for GIC benefits.

Eligible & ineligible expenses

Eligible DCAP expenses are:

  • Care for dependent children up to 13th birthday
  • A person of any age who can be claimed as a dependent on federal income tax return and who is mentally or physically incapable of self-care (includes elder care)
  • Child care at a daycare center, day camp, nursery school or by a private sitter
  • Before and after-school care
  • Housekeeper caring for an eligible dependent
  • Au Pair placement fees and weekly stipend

Ineligible DCAP expenses are:

  • Education or tuition fees (kindergarten and beyond)
  • Late payment fees
  • Overnight camps
  • Agency fees for finding a care provider
  • Sports lessons, field trips, clothing
  • Mileage reimbursement to/from the care provider

Eligibility & monthly fee

If you’re an active state employee who is eligible for GIC health benefits, you’re eligible to enroll in the HCSA. You must also work at least 18.75 hours in a 37.5-hour work week or 20 hours in a 40-hour work week (half-time) to be eligible.

For the 2019 fscal year, the monthly administrative fee for HCSA only, DCAP only, or HCSA and DCAP combined is $2.50 on a pre-tax basis.

Annual Enrollment: April 4 - May 2, 2018

During the GIC’s spring 2018 Annual Enrollment period, state employees can enroll in FSA benefits for the 12-month fiscal year of July 1, 2018 – June 30, 2019. It is important to consider your election carefully. Because the IRS has a strict “use-it-or-lose it” rule, which means that money left in a pre-tax account plan at the end of a plan year is forfeited.

New state employees and employees who have a qualifying status change during the year may enroll for partial-year benefits. For DCAP, coverage begins on the first day of employment.

Qualifying status changes include:

  • Child reaching age 13
  • Starting or stopping school that changes the hours of care needed
  • Changing from half day to full day of school
  • Change in provider (not a relative)
  • Change in cost charged by provider (not a relative)
  • Change in residence resulting in change in need for daycare
  • Change in daycare provider/cost

If you are already an enrolled participant who wants to re-enroll, you must re-enroll each annual enrollment period online.

Reimbursement

You can file claims for reimbursement (using a DCAP claim form) as you incur qualified expenses. You can also use ASIFlex’s online tool and mobile app to quickly submit claims. As required by the IRS, make sure to keep copies of all HCSA and DCAP receipts with your tax documents.

Additional Resources for Reimbursement

Key FSA Dates

  • 2019 Fiscal Plan Year: July 1, 2018 – June 30, 2019
  • Annual Enrollment: April 4 – May 2, 2018
  • 2½-Month Grace Period: July 1 – September 15, 2019
  • Claim Filing Deadline: October 15, 2019
     

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