Covid-19 | Member Resource

DCFSA Update

A Dependent Care Flexible Spending Account (DCFSA) allows employees to set aside pre-tax 1 payroll contributions to pay for dependent care expenses. Employees pay for dependent care costs out-of-pocket then submit documentation for reimbursement. We understand that in today’s complex environment, your dependent care needs may have changed, so please read on for more information about how you can use and adjust your dependent care account.

WHAT DOES THIS MEAN FOR YOU?

To qualify, the dependent care must be essential for the employee and spouse (if applicable) to:

  • Work

  • Look for work

  • Attended school full time

Qualified dependents must meet one of the following criteria:

  • Children under the age of 13

  • A spouse who is physically or mentally unable to care for him/herself

  • Any adult you can claim as a dependent on your tax return who is physically or mentally unable to care for him/her

Maximum annual contribution is $5,000 per household

  • Funds must be spent within the plan year or they will be forfeited

Eligible Expenses*

  • Babysitter inside or outside household
  • Day care
  • Looking for work expenses
  • Custodial childcare or elder care expenses

Ineligible Expenses*

  • Babysitter inside or outside household
  • Day care
  • Looking for work expenses
  • Custodial childcare or elder care expenses
FAQs

There have been a lot of changes during this past month as the nation deals with COVID-19. This list will hopefully help you find the answers you need regarding your health accounts and the recent changes.

Have more questions? Contact us.

DCFSA