Employee Benefits
Dependent Care Assistance Plan (DCAP)

The Dependent Care Assistance Plan (DCAP) permits employees to pay for certain dependent care expenses on a pre-tax basis. Each year, during the DCAP Open Enrollment in November, you may enroll and authorize a bi-weekly deduction from your pay. When an eligible expense is incurred, file a DCAP Reimbursement Request, along with the bill or receipt for the expense. You are responsible for paying a bill by it's due date, whether or not you have received a reimbursement. You may file claims any time before January 31st following the end of the plan year. There is a nominal fee of seventy cents per pay period to cover adminstrative costs. For detailed informaton, refer to the Dependent Care Assistance Plan (DCAP).

Note: Tax laws are complex; it is important that you receive professional tax advice before enrolling in the plan.

Eligibility
Employees must meet the eligibility requirements specified in their Memorandum of Understanding (MOU), Exempt Compensation Plan, contract or salary ordinance.

Eligible Expenses
Expenses must be for qualified dependents and services must be provided by an eligible care provider. A qualified dependent under the DCAP is a dependent whom you claim for Federal tax purposes and is either a child
living with you under age 13; your spouse, a relative,or a child age 13 or over who is physically or mentally incapable of self-care and is living with you at least eight hours a day; any individual who qualifies as a
dependent under any employer sponsored health care plan or insurance contract, and for purposes of pre-tax contributions or reimbursement on a pre-tax basis qualifies as a dependent under the Internal Revenue Code (IRC) Section 152.

Expenses that are not eligible for reimbursement include dependent care which does not enable you to work; expenses paid to a person who you or your spouse are entitled to claim as an exemption for Federal income tax purposes; tuition or education expenses for a child in kindergarten or above; fees paid to your child who is age 18 or younger for babysitting; overnight care at a convalescent nursing home for a dependent relative; overnight camp; or expenses for lessons, tutoring or transportation.

Maximum Contribution
The maximum annual contribution for the calendar year is the lowest of either the employee's earned income, or $5,000 for married couples filing jointly: $5,000 for single persons: or $2,500 for married couples filing tax returns separately. Elections are irrevocable for the remainder of the plan year unless you experience an Internal Revenue Service (IRS) Change in Status Event.

Important Rules
According to Federal tax law, any amounts in your DCAP account that are not used to reimburse you for eligible dependent care expenses do not “roll-over” from one plan year to the next. The funds will be forfeited and applied towards the cost of administering the plan. It is important that you carefully calculate your expected dependent care expenses before making your DCAP contribution election.