The Dependent Care FSA (DCFSA) allows you to set aside pre-tax dollars to pay for eligible dependent care expenses for children under age 13 or a spouse or relative who is incapable of self-care and lives with you.

How it Works

You decide how much to put aside (up to the annual maximum of $5,000*) and the deductions are evenly divided among the number of paychecks you receive during the year. Your contributions become available after each payroll period. You can then use these funds to reimburse yourself for eligible childcare costs, such as pre-school, day camp, after school programs or to pay a non-relative who cares for your child in your home.

If your spouse also has access to a Dependent Care FSA, your combined contributions cannot exceed $5,000.

Yearly Enrollment

Eligible employees must enroll each year during Annual Enrollment (or as a new hire) by selecting a Goal Amount, even if they were a participant the year before. Elections do not carry over from year to year.

Eligible Expenses

Eligible expenses for the DCFSA include daycare, pre-school, nursing care for adults, and more. can only be made for a qualified expense. An eligible provider must have a social security number or Federal Tax ID. Find more eligible expenses at this link.

Important Dates

Plan Year

• For 2021: January 1, 2021 – December 31, 2022
• For 2022: January 1, 2022 – March 15, 2023
• For 2023: January 1, 2023 – March 15, 2024

Deadline to Submit Claims

• For 2021: April 30, 2023
• For 2022: April 30, 2023
• For 2024: April 30, 2024

How to Enroll

1. Employees must enroll every year during Annual Enrollment through the Benefits Service Center by choosing a Goal Amount for the plan year.
2. Your Goal Amount is divided into the remaining pay periods left in the year, and you are deducted this amount from each paycheck
3. Deductions are taken pre-tax each payroll and held in an account for reimbursement. The amount available to use is what has been deducted so far from your paycheck (it is not frontloaded like the health FSA)

Reimbursement Process

• You pay for the eligible expense out of pocket—don’t forget to save your receipts!
• To receive reimbursement, you can submit a claim online or submit a claim form by mail or fax
• Once your claim is received, reimbursement will be issued by check or by Direct Deposit (which you may set up when logged into your WageWorks account)

Use It or Lose It

Per IRS regulations, any balances left in the account after the deadline must be forfeited. This means that if you do not use all of your Goal Amount, it will not be carried over or reimbursed to you.

Register On the WageWorks site

Once you have enrolled, you will need to create an account on WageWorks. It may take up to a week from the time you enroll until your information is updated in the WageWorks system. If the system does not recognize you when you first try to register, please wait a few days and try again. The ID code will be the last 4 digits of your social security number.

Go to this link for instructions on how to register for a WageWorks account.

Highly Compensated Employees

The IRS requires that an annual non-discrimination test be performed on the DCFSA to ensure the plan does not disproportionately favor highly compensated employees.

The IRS defines a highly compensated employee as one who earned more than $155,000 in the prior year. In order to pass the required testing, UMG must limit DCFSA contributions for all Highly Compensated Employees to $2,500.

Making a Change

The only time Goal Amounts can be modified is when a change in family status occurs, such as a marriage, divorce, birth or adoption. Changing your day care provider or a substantial increase in day care cost also qualifies as a family status change for Dependent Care.

Changes to Goal Amounts must be made online on the Benefits Service Center or by contacting the Benefits Service Center at (888) 526-2794 within 31 days of experiencing a family status change.

Leave of Absence

Federal regulations require that participation in the DCFSA cease during any period of leave. Your participation in the DCFSA will cease on the date your leave begins. If you wish to participate in the DCFSA upon your return to work, you must contact the Benefits Service Center at (888) 526-2794 if you want to re-enroll. Your participation in the Plan will not automatically resume. Your goal amount will be divided by the number of remaining pay periods from the time of your return to the end of the year. Claims for services incurred during your leave will not be eligible for reimbursement.

Resources:

• WageWorks Dependent Care FSA Claim Form