Benefits - Dependent Care Reimbursement Account
Chancellor & Chancellor, Inc. is pleased to introduce an additional benefit for our temporary contract employees.
The Dependent Care Reimbursement Account (DCRA) gives you a tax break on every dollar you spend on dependent care expenses. It covers not only your dependent children, under age 13, but anyone considered your dependent for income tax purposes. You decide how much you want to deposit, within the limit specified by our company's DCRA administrator, to cover your calendar year dependent care expenses. These must be expenses that make it possible for you, or you and your spouse, to work.
The maximum amount of DCRA that you can deposit for a total plan year is $5000. If you are working only a portion of the year, this maximum amount will be pro-rated. For example, those wishing to take advantage of this benefit starting August 1st may set aside a maximum amount of $2083.00. The appropriate amount will then be deducted pre-tax from your paycheck every payroll period.Under the plan you will be reimbursed only for dependent care expenses meeting all of the following conditions:
1. The expenses are incurred for services rendered after the date of this election and during the plan year to which it applies.
2. Each individual for whom you incur the expenses is:
(i) a dependent under age 13 whom you are entitled to claim as a dependent (or a child or other dependent under age 13 whom you are supporting but are not entitled to claim as a dependent only because of a written declaration or decree of divorce) on your federal income tax return, or
(ii) a spouse or other tax dependent (or a child you are supporting but are not entitled to claim as a dependent only because of a written declaration or decree of divorce) who is physically or mentally incapable of caring for himself or herself.
3. The expenses are incurred for the care of a dependent described above, or for related household services, and are incurred to enable you to be gainfully employed.
4. If the expenses are incurred for services outside your household, they are incurred for the care of a dependent who is described in 2(i) above, or who regularly spends at least 8 hours per day in your household.
5. If the expenses are incurred for services provided by a dependent care center (i.e., a facility that provides care for more than six individuals not residing at the facility), the center complies with all applicable state and local laws and regulations.
6. The expenses are not paid or payable to a child of yours who is under age 19 at the end of the year in which the expenses are incurred.
7. The expenses are not paid or payable to an individual for whom you or your spouse is entitled to a personal tax exemption as a dependent.
Eligible employees and their eligible dependents, who did not enroll when initially eligible, may only enroll during the Open Enrollment Period. The Annual Open Enrollment Period is the month of December and coverage will be effective January 1st.
Dependent Care Reimbursement Account is one of the benefits offered under Chancellor & Chancellor's Section 125 Plan. To enroll, simply fill out the Section 125 Enrollment Form: Enrollment Form
To submit a claim, simply fill out the Dependent Care Claim Form.
For help in calculating your annual dependent care assistance costs, please use this Worksheet.
For further information on Dependent Care Reimbursement Account, contact anthony@chancellor.com
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