DepCare FSA for Academic Student Employees

• You are responsible for reading the SPD to ensure that you are participating correctly in the DepCare FSA.
• Dependent care expenses must meet the statutory requirements of IRC §21 and §129.
• You are responsible for making sure that all expenses submitted for reimbursement are eligible. UC cannot provide tax advice. Consult your tax advisor for the following:
  • If you need advice about whether the DepCare FSA or the dependent care tax credit will be best for you,
  • To find out if a dependent care expense (not listed in the DepCare FSA Summary Plan Description or IRS Publication 503) is eligible or ineligible, or
  • To discuss how DepCare FSA affects your individual tax situation.
• You will forfeit (i.e. “use it or lose it”) any contributions you can’t claim for the plan year.
• Review all options available before enrolling in the DepCare FSA plan including federal tax credit.

For more information about dependent care and eligibility information refer to the IRS Publication 503 Child and Dependent Care Expenses available through the IRS website or calling the IRS toll-free at 1-800-829-1040.

Am I eligible for both the DepCare FSA and ASE Childcare reimbursement program benefits?

Academic Student Employees covered by Article 4 of the UAW collective bargaining agreement are eligible to participate in both. However, you can not submit a claim for the same expense under both programs.

The DepCare FSA SPD says an eligible dependent includes a child under age 13. What happens when my child reaches age 13?

Unless your child is incapable of self-care as defined by the IRS, dependent care expenses incurred on and after the day your child becomes age 13 are generally not eligible for DepCare FSA reimbursement. See IRS Publication 503 for examples.

It’s important that you review and, if necessary, adjust or cancel your DepCare FSA contribution when your child reaches age 13. You must adjust your contribution amount or cancel your participation within 31 days after your child’s birthday. Unless you adjust your contribution amount, your current contributions will continue for the remainder of the Plan year, even though expenses incurred after your child reaches age 13 cannot be reimbursed.

Are schooling/educational expenses eligible for reimbursement?

Generally not, but there are some exceptions, usually for children enrolled in programs for children not yet eligible for kindergarten.

For children in kindergarten or above, you can only request reimbursement for costs associated with before- and/or after-school day care, including day care with an educational component. See IRS Publication 503 for more information or contact your tax advisor.

If I have two different appointments and the combined appointments are at least 43.75 percent, can I enroll?

Yes, if both appointments otherwise qualify for participation in the DepCare FSA plan.

If I have employment as an ASE/GSR or even as a non-ASE/GSR during the summer, can I claim benefits for that period?

Yes, if you are enrolled in the DepCare FSA and you have eligible expenses and continuous employment from the spring.

What will be my “effective date?” (An employee is not eligible for expenses incurred before their effective date.)?

The effective date is the first day of the month following your enrollment, subject to payroll deadlines.

What will be the termination date of my participation in the DepCare FSA coverage? How is it related to the end date of my appointment? How is it related to the last deduction?

Your monthly contribution continues only as long as you remain on active pay status and are otherwise eligible. Your participation generally ends at the end of the month that your appointment ends or you cease being eligible to participate. You may submit claims for eligible expenses incurred through the last day of participation in the plan.

How do I figure out what my monthly contribution should be?

You will need to determine how many months you will be working during the calendar year. See examples.

Can I sign up multiple times in a year if I have appointments in various terms? Will I have a PIE each time I start another appointment? Will it matter if the terms are consecutive?

You may have a new PIE during the year depending on the length of the break in service. If you are reappointed within less than 120 days, enrollment is limited to the monthly salary reduction agreement in effect at the end of the previous appointment. Additionally, if you have a change in family or employment status during the break in service, you may make a change consistent with the change in the status. If you are rehired with a break in service of more than 120 days, you are treated as a newly eligible employee. For example, if you have a winter quarter position followed by a fall quarter appointment, the gap between appointments exceeds 120 days, so you will need to re-enroll for the program in the fall.

How do I enroll?

You can enroll through your UCPath account.

Do I need to sign up for DepCare FSA each calendar year?

Yes, if you continue to be eligible.

When will my first deduction occur?

Your first deduction will occur on the first paycheck you receive after submission of your enrollment form subject to monthly payroll deadlines. Typically, if your enrollment is received by the 15th of the month, your first deduction will be taken from your next monthly paycheck.

If you are paid more than once a month, the calendar year and payroll schedule at your location will determine from which check(s) your DepCare FSA contribution will be withheld. Please contact your Benefits or Payroll Office for more information.

For the fall term, when will my last deduction occur?

Your last deduction will occur for November earnings paid in December. You will be reimbursed for claims for dependent care expenses incurred during the month of December.

How can I monitor my DepCare FSA account?

WEX Health is the administrator for the FSA and COBRA plans, and you can access your account on the WEX website. 

When are my DepCare FSA contributions available to pay for my dependent care costs?

DepCare FSA contributions are credited through payroll to your DepCare FSA account around the 10th of each month. Usually, amounts withheld from your paycheck near the beginning of the month are avail able to pay claims near the end of the month.