> What is dependent care assistance?
> How much can I contribute for dependent care?
> Who qualifies as a dependent?
> How are deductions made?
> Can I ever lose my money?
> Will I be reimbursed for expenses incurred before I became eligible?
> What are some examples of qualified dependent care expenses?
>What are some examples of expenses that DO NOT qualify as dependent care expenses?
> If I contribute money for dependent care, may I still take a tax credit?
> How do I request reimbursement?
> When will I receive reimbursement?
> What happens if I go on a leave of absence with or without pay and I need to stop or change my dependent care deduction?
> How will I know what my account balances are for Dependent Care?
> What happens to my account if I terminate?

Q: What is dependent care assistance?
A: Dependent Care is a flexible spending account which allows employees to use pre-tax dollars for the cost of dependent care. Dependents are defined as any child under the age of 13 and/or a dependent or spouse who is physically or mentally incapable of self-care.

Q: How much can I contribute for dependent care?
A: The maximum is $5,000 a year. The maximum is less than $5,000 if either or both you and your spouse earn less than $5,000 in a calendar year. Then the maximum is the lowest of either spouse's income. A special limit applies if your spouse is a full-time student or is incapable of self-care. In this case, the maximum is $2,400 for one dependent and $4,800 for two or more dependents.

Q: Who qualifies as a dependent?
A: Your dependent child under age 13 and/or a dependent or spouse who is physically or mentally incapable of self-care.

Q: How are deductions made?
A: Once you complete the Johnson County Benefits Enrollment Form, electing to participate in Dependent Care, the Payroll Department deducts the monthly amount you elected to put into your account from your paycheck. One half is taken out of the first pay period of the month and the other half from the second pay period of the month.

Q: Can I ever lose my money?
A: The IRS states that you "use or lose" your money each year. You are given a 31 day grace period in the next year to submit claims for reimbursement on your account. You have until January 31, to submit claims incurred in the previous year. If claims are not received by January 31 they will not be considered for reimbursement.

You should be very careful in choosing how much you deduct because if you set aside more than you spend, you lose what you do not spend.

Q: Will I be reimbursed for expenses incurred before I became eligible?
A: No. Expenses incurred before you became eligible will not be reimbursed.

Q: What are some examples of qualified dependent care expenses?

> You hire a housekeeper who takes care of your infant, cleans house, and feeds the baby.
> You hire a nurse to care for your dependent parent who lives with you for eight or more hours a day.
> You send your child to a day care center which meets all federal and state qualifications.
> Nursery school expenses.
> Cost of services provided at home, outside the home, or at a dependent care center may qualify if all the legal requirements stated in the Federal Tax Code, Section 21, are met.

Q: What are some examples of expenses that DO NOT qualify as dependent care expenses?

> Cost of tuition for first grade and above.
> Cost of transportation to and from the place where care is provided.
> Boarding school expense for tuition.
> Expenses for food and clothing.
> Babysitting when used for attending social functions or attending to business which is not directly work related.

Q: If I contribute money for dependent care, may I still take a tax credit?
A: Dependent care expenses you have been paid for through this plan cannot be counted for a tax credit. You may wish to consult with a financial advisor to help you decide whether it is best for you to take a tax credit or put pre-tax dollars into dependent care.

Q: How do I request reimbursement?
A: Please refer to the claim guidelines.

Q: When will I receive reimbursement?
A: Claims are processed by the Office of Financial Management on a semi-weekly basis. If the claim is received in good order, your request for reimbursement will be processed generally within 5 business days. If you have direct deposit with Accounts/Payable, which is separate from Payroll, your reimbursement will be direct deposited just as with other expense reimbursements that you receive from the County. Otherwise, a check will be mailed to your home.

If the claim lacks sufficient documentation, we will contact you for additional information or provide an explanation of denial. If you have not received a check or a returned claim due to insufficient information within three weeks, you should contact OFM-Benefits to verify its initial receipt.

You can monitor the status of your claims by accessing Oracle SSHR. Information available includes your annual election amount, year-to-date paid claims, balance of available funds and status on received claims. Go to JOCO Employee SSHR, then select FSA Register. Click on the MedBank or Dependent Care tab to access the status of your account.


Q: What happens if I go on a leave of absence with or without pay and I need to stop or change my dependent care deduction?
A: A leave of absence without pay or a paid leave of 30 days or more is considered a family status change for the purposes of dependent care and medical reimbursement benefits. Therefore, if you are on a paid leave you may change your contributions. You have 30 days after your leave begins to make a family status change. If the leave is unpaid, your contributions can not be made to your dependent care account. Dependent Care deductions will resume upon your return to work. If you wish to make changes you may do so by completing all necessary forms and returning them to OFM-Benefits within 30 days of your return to work.

Q: How will I know what my account balances are for Dependent Care?
A: You will receive statements with each claim processed showing your individual account balances, or you may request a statement at any time by contacting OFM-Benefits.

Q: What happens to my account if I terminate?
A: For Dependent Care, you may file claims for expenses incurred before you terminate employment provided you file within 60 days of your termination.

 
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Dependent Care FAQ's