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Dependent Care Assistance Program (DCAP)

CONTENTS

This page describes the Dependent Care Assistance Program (DCAP) for 2008.

UNDERSTAND

The Dependent Care Assistance Program allows you to take a pre-tax deduction for eligible dependent care expenses from your pay. You save money because you do not pay income tax on the amount of your deductions. You can use DCAP instead of taking the Child and Dependent Care Credit when you file your tax return. Compare DCAP to the IRS Child and Dependent Care Credit described at the IRS website.

The University sends your DCAP payroll deduction to your DCAP account which is administered by Application Software Inc. (ASI), our third party administrator. You pay dependent care expenses out of pocket and then you request reimbursement from your DCAP account by submitting a reimbursement claim form to ASI.

You can obtain your account balance in either of two ways:

  1. Call ASI's Customer Service Center: 1-800-659-3035
  2. Go to ASI's account website and choose the "Account Detail" button. Enter the Flex PIN that was sent to you with your enrollment confirmation (also included on each periodic statement). If you do not have a PIN call the Customer Service Center: 1-800-659-3035.

If you choose to participate in the DCAP program, it is important that you estimate your dependent care expenses for the coming year carefully, and that you obtain reimbursable services by December 31 of the year in which you participate in the program. Any funds that remain in your account for a given year are forfeit to the State of Washington if ASI has not received your reimbursement claim by March 31 of the year after which you incurred eligible expenses.

Eligibility

All UW employees—except students whose wages are exempt from FICA, and nonresident aliens who receive no U.S.-source earned income—are eligible to participate in the DCAP program.

Enrollment

You may enroll in the DCAP program:

Enrollment Requirements

Current plan participants MUST re-enroll in the plan each year in order to continue participation. The re-enrollment period is between November 1 and November 30 of the year before the next year's FSA plan goes into effect.

New hires who wish to enroll in an FSA must submit to ASI a completed enrollment form within 30 days from date of hire. Participation becomes effective the first day of the month following receipt of the properly completed enrollment form.

Current University employees who do not have an FSA but who experience a qualifying life event and who wish to enroll in an FSA must submit to ASI a completed enrollment form within 30 days from date the qualifying event. Participation becomes effective the first day of the month following receipt of the properly completed enrollment form.

Qualifying Dependents

To qualify as a dependent under the program, an individual must normally be a member of your household, receive more than one-half of his or her total support from you, and fall within the definitions specified below (and in IRS Child and Dependent Care Expenses Publication 503):

  1. Your dependent child was under age 13 when you provided care,
  2. Your spouse was not able to care for him/herself due to physical or mental disability, and who lived with you for more than half of the year, or
  3. A person who was not able to care for him/herself due to physical or mental disability, and lived with you for more than half the year, and was either:
    1. Your dependent, or
    2. Someone who would have been your dependent except that:
      1. He/she had gross income of $3,300 or more,
      2. He/she filed a joint return, or
      3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s income tax return.

Contribution Limits

DCAP contributions are limited to;

The amount of your contribution cannot be more than either your earned income or your spouses earned income, whichever is less. Earned income means wages, salaries, tips, and other employee compensation plus net earnings from self-employment.

Impact on Other Benefits

Using DCAP reduces the salary on which your Social Security benefits and any unemployment compensation benefits are calculated.

ACT

Enroll in 2008 DCAP

All eligible current employees can enroll during open enrollment, October 29, through November 30, 2007. After open enrollment, current eligible employees can only enroll if there is a qualifying change in family status.

  1. Learn about the DCAP program by;
    1. reading the DCAP Overview; and,
    2. reading the DCAP Enrollment Guide (available soon).
    3. You can also contact DCAP customer service toll free at 1-800-659-3035.
  2. Estimate the amount of eligible dependent care expenses you expect to incur during the calendar year. To determine whether DCAP can save you money, see the DCAP Tax Savings Tables.
  3. Enroll online or
    download the Paper Enrollment Form, complete it and fax to ASI at 1-866-381-9682 no later than midnight on November 30, 2008.

Submit Claims for Reimbursement

Submit reimbursement claim forms (available soon) to ASI for reimbursement of expenses you incur in 2008.

EXPLORE

 

Dependent Care Assistance Forms