Dependent Care Assistance Plan
McClatchy realizes that for many people, the cost of day care, nursery school, or supervision for an aging parent is a significant monthly expense which is why we offer a Dependent Care Assistance Plan (DCAP)- a type of FSA.
The Dependent Care Assistance Plan (DCAP)- a type of FSA allows you to use pre-tax dollars to pay for certain care expenses for qualifying dependents—children, a disabled spouse, or legally dependent parents.
Anyone regardless of their medical plan may take advantage of the DCAP!
How can you lower your taxable income this year with your Dependent Care Assistance Plan FSA?
Contributions to your FSAs are tax-deductible, and the funds are tax-free when used for qualified expenses. For example, if you contribute $2,000 annually to your FSA and your base salary is $30,000- you will only be taxed on $28,000 come tax season.
- Information Line: 888-678-8242
- FSA Claims
Use this form to submit expenses for reimbursement.
Still have a few questions about our dependent care assistance plan? More Dependent Care FSA information is listed below- take a look.
The annual amount you elect to contribute will be divided into equal amounts and deducted from your first two paychecks of each month on a before-tax basis for a total of 24 pay periods per year. As you incur and pay for eligible expenses, you submit claims for reimbursement with copies of your receipt(s) or Explanation(s) of Benefits to PayFlex, our FSA third-party administrator. PayFlex pays approved claims on a daily basis.
You can submit claims incurred between Jan. 1 and Dec. 31 against your account balance for the Plan year. You will have until March 31 of the following year, to submit these DCAP claims to PayFlex for reimbursement.
In accordance with IRS regulations, money that is not claimed by the deadline will be forfeited.
Before enrolling during the annual Open Enrollment period, you will need to estimate the eligible health care and/or dependent care expenses you and your eligible dependents expect to incur during the upcoming 12-month period for both DCAP and HCRP beginning Jan. 1. It is important to do this carefully because any amounts left in your account(s) after March 31 of the following year will be forfeited. Current federal tax laws prohibit refunds of leftover account balances to participants as well as the transfer of funds from one FSA plan to another. The tax laws also prohibit the transfer of funds from one plan year to another.
Use the Savings Calculator to help you itemize unreimbursed health and dependent care expenses to assist in determining your health care spending account contributions and potential increase in savings.
You can contribute up to $5,000 to the DCAP based upon these guidelines:
- your contributions cannot be greater than your income or your spouse’s income;
- if your spouse is disabled or a full-time student, he/she is assumed to earn $250 per month for one eligible dependent, or $500 per month for two or
- if your spouse also participates in a Dependent Care Assistance Plan, your combined total deposits cannot exceed $5,000;
- if you and your spouse file separate income tax returns, your individual Dependent Care Assistance Plan is limited to $2,500.
The amount you elect to contribute cannot be changed during the Plan Year except under very limited circumstances. Contribution changes based on a change in status event are allowed only if the election change is necessary and consistent with the change in status. For the Dependent Care Assistance Plan, the change must also affect your dependent care expenses. All changes must be sent to your local human resources department within 30 days of the event.
For the Dependent Care Assistance Plan, eligible dependents are 1) children younger than age 13 that live at the same residence as the taxpayer for more than half the year; 2) a spouse is incapable of self-care; and/or 3) relatives or members of your household who live in your home, receive over half of their support from you, are incapable of self-care and do not have an annual income in excess of $3,200.
If you are unsure of custodial or dependent status, or if you plan to claim dependent care expenses other than child- or after-school care expenses, contact your People Team Benefits Specialist to discuss eligibility.