Regence Dependent Care Flexible Spending Account (DCFSA)
Save on coverage while saving on care
The Regence Dependent Care FSA is a consumer-directed health
program that offers you and your employees a smart way to save on the
cost of caring for loved ones.
Contributions are deducted from employee pay before federal, state
or Social Security taxes are withheld. This reduces the amount your
employees pay in taxes and allows them to save money on the care
they are already providing their family members.
How does a Dependent Care FSA work?
Using the Regence DCFSA is easy. Employees simply follow these steps:
- At the beginning of each year, employees decide their total yearly
DCFSA contribution amount.
- Funds are contributed by the employee through regular payroll
deduction and placed into a special account.
- Eligible expenses are paid up-front by the employee.
- The employee submits a claim for reimbursement from the
DCFSA; a check for the claim amount is then mailed
directly to the employee.
What expenses are covered?
The Regence Dependent Care FSA can be used to cover a
range of family care expenses. These include:
- Daycare provider fees
- Preschool fees
- Before-school and after-school care for kids under age 13
- Nanny expenses
- Eldercare providers
Additional expenses may also qualify for reimbursement.
How much should be set aside?
The amount an employee
chooses to set aside is based on
what they expect to spend on
dependent care expenses in a
given year. The limit for dependent
care deductions is $5,000 per
family per calendar year for single
taxpayers with dependents or for
married taxpayers who are filing a
joint tax return.
Funds in Dependent Care FSAs can be used only in the
plan year. Any unused funds do
not rollover to the next year.
Lower costs bring stronger benefits
The Regence Dependent Care
FSA offers your employees a
creative way to save on the care
their families need. Their taxable
income is lower, which translates
to lower Social Security costs for
you. Adding a dependent care
program to your health plan gives
your employees more control over
their money and allows you to
reward them with a greater and
more valuable benefit package.
Frequently asked questions
Can contribution amounts
be changed?
The annual election amount
cannot be changed in a calendar
year unless the account-holder
experiences a qualified life or
status-changing event. These
include marriage, the birth of a
child, adoption, or a change in a
spouse's employment status.
Qualified changes must be
reported within 30 days of
the event.
Does it cover daycare expenses
during maternity leave?
The amounts paid while an
employee is off work due to illness
or maternity leave are not eligible.
Can the FSA be used for kids
over 13 years of age?
Qualified dependent care is
limited to children under the
age of 13.
What if employment is terminated?
If an employee changes jobs, they
can still request reimbursement
for any dependent care expenses
incurred prior to termination.
Are there any tax consequences?
This account reduces federal tax
deduction dollar for dollar. Some
people receive greater savings
from a Dependent Care FSA,
others from the Federal Tax
Credit. Employees should
contact their tax advisors for
advice specific to their situation.
