Dependent Care Assistance Program

DCAP Overview

To help make child care more affordable, permanent employees may enroll in the Dependent Care Assistance Program (DCAP). In accordance with section 129 of the Internal Revenue Code, this benefit option allows employees to set aside pre-tax dollars to pay for eligible dependent expenses.

These deductions are not subject to State, Federal, or Social Security, and Medicare (FICA) taxes. Participants are then able to be reimbursed on an ongoing basis rather than wait to file with their annual tax filings each year. The 2020 maximum annual contribution amount allowed by the IRS is $5,000.

IMPORTANT: You must re-enroll in your Flexible Spending Accounts (HCSA and DCAP) every year. If you do not re-enroll during the annual benefits Open Enrollment, three (3) week period usually in late September - early November, your FSA participation will end on December 31.

Resources

March 31, 2020 is the deadline to submit 2019 plan year claims.