Dependent Care Reimbursement Program

PROGRAM: A voluntary dependent care reimbursement program designed for employees to create a pretax income account (Dependent Care Account) through payroll deduction and receive reimbursement from the account in order to provide for the payment of certain dependent care expenses.

ELIGIBILITY: All employees are currently eligible to participate at this time.

ENROLLMENT: Initial enrollment must be made within 60 days of appointment or the qualifying event. Subsequently, employees must file a new Dependent Care authorization document during the annual open enrollment period, September 1-October 15, in order to continue participation in the new plan year. The plan year is January through December with the first deduction being made from the December pay period warrant with issue date of January 1. The monthly deduction is taken before services have been utilized, e.g., the deduction is made from the pay warrant for the December pay period, the first claim that can be filed is for dependent care services provided beginning January 1st. There is an administrative charge, currently $2.00 per month, which is withheld as after-tax income through payroll deduction.

Once the plan begins, no changes can be made in the amount withheld unless there has been a change in family status, as defined by the Internal Revenue Service. Only if there has been a change in family status can an employee increase (up to the CSU limit of $416.66 per month), decrease, stop, or start contributions by filing a new authorization form. Family status changes allowed by the IRS include:

1. Marriage, divorce or legal separation;

2. Birth or adoption of a dependent child;

3. Death of a spouse or dependent;

4. A change in custody of a dependent;

5. A change in eligibility of a dependent;

6. Employment or loss of employment of a spouse;

7. Change from part-time to full-time employment or vice versa for either the employee or spouse;

8. Start of, or return from, unpaid leave for either the employee or spouse

If contributions are stopped, employees may continue to submit eligible expenses for the remainder of the plan year or until their account is exhausted, whichever comes first.

PROVISIONS: Dependent care expenses are eligible for reimbursement through the Dependent Care Account (DCA) provided the dependent care is required in order for the employee or spouse to work. Other criteria may also apply; please refer to the individual program brochure available in The Center for Human Resources.

Eligible dependents for whom DCA reimbursements can be claimed are:

1. A child or children under age 13, for whom the employee or spouse can claim dependent status on his/her income tax return.

2. A disabled spouse who regularly spends at least 8 hours a day in the employee's home.

3. A dependent relative (such as a parent, sibling or in-law) who is incapable of self-care AND spends at least 8 hours a day in the employee's home AND whom the employee claims as a dependent on his/her income tax return.

Employees can contribute any amount from a minimum of $20 per month to a maximum of $416.66 per month ($5,000/yr.). However, if married, and filing a separate tax return, the annual maximum is $2,500. Because the annual authorization is irrevocable unless there has been a change in family status, employees should carefully estimate annual expenditures for dependent care prior to authorizing the monthly contribution. Any money left in the DCA after expenses have been paid for the year will be forfeited.

CLAIMING REIMBURSEMENT: Expenses must be incurred (care provided) on or after the effective date of the employee's DCA enrollment to be covered by the plan. Employees may file claims for expenses incurred during a plan year anytime up to six months after the end of the plan year, e.g. June 30, 20002 for the 2001 plan year.

Claim forms are available in The Center for Human Resources, ECR-B518.

1. Complete a CSU claim form or attach an itemized statement from your provider.

2. Enter the actual amount of your expenses on the claim form, even if it exceeds the balance in your account. When your account has sufficient funds, you will be reimbursed automatically.

3. Send the claim to: ASI, P. O. Box 6044, Columbia, MO 65205-6044; OR FAX to: 1-573-874-0425.

4. Reimbursement will be sent to the employee by the end of the month if the claim is received by the 10th of the month (e.g. received by June 10, reimbursed by July 1).

VERIFICATION AS PROVIDER: The IRS has revised the income tax forms to provide space for the name, address, and tax identification number of care givers whenever an employee uses a DCA or the tax credit. If the information is not supplied, the taxpayer will lose the tax exclusion, unless he/she can show that "due diligence was exercised" in attempting to furnish it. See Dependent Care Program brochure for specifics.

Employees are encouraged to consult with their personal tax advisor to clarify the impact the DCA will have on tax status. This is a summary of the Dependent Care Reimbursement Program is not to be construed as a substitute for the ruling documents.

Revision date 09/29/06