Dependent Care Flexible Spending Account
When an employer augments a benefits package with a DC-FSA, it sends a strong message to employees that their employer cares about their work-life balance, and it helps employers attract and retain staff.
Plan Design Options for a DC-FSA @TextFields.Render(Model.Headline1Type,>
How it Works @TextFields.Render(Model.Headline2Type,>
Unlike the HC-FSA, the total election amount of the DC-FSA is not available January 1st. Employees can only be reimbursed for expenses equal to the amount of money they have already contributed to their DC-FSA via payroll deduction. When an employee incurs qualified daycare expenses, they can submit claims to be reimbursed from the DC-FSA. All claims have to be substantiated or verified as an eligible expense. Submitting claims can be done online, on our mobile app, or by mail. Having a debit card with the DC-FSA provides easy access to DC-FSA dollars at daycare providers that accept debit card payments.
Why We Ask for Substantiation @TextFields.Render(Model.Headline3Type,>
- The date of service or purchase;
- The name of the daycare provider;
- The service provided; and
- The amount the employee paid or is responsible for paying.
If a receipt doesn’t include all of the necessary information, we have to deny the claim. We’ll notify the employee by letter (or by email, if they choose), and tell them how to resubmit the claim with the proper documentation.
Debit Cards and Receipts @TextFields.Render(Model.HeadingType, editable: true)>
Document Services @TextFields.Render(Model.HeadingType, editable: true)>
As a service to employers, HSA Bank offers the faciliation of Plan Documentation as well as Non-Discrimination Testing for Dependent Care Flexible Spending Accounts.
HSA Bank can facilitate the generation and maintenance of the written Plan Document and Summary Plan Description for DC-FSA plans. These documents are a crucial part of any benefit program offered by employer groups as they communicate the plan benefits and how each plan operates. All documents are stored electronically for later reference and include a date and time stamp of the original or any subsequent revisions.
HSA Bank can facilitate the Non-Discrimination Testing (NDT) for DC-FSA plans. The IRS requires employers to perform NDT each year. The reason for NDT is to prevent key and highly compensated employees from receiving a disproportionate amount of employer provided tax-free benefits as compared to the rank-and-file employees. NDT is an important component of plan compliance. Failure of an employer to satisfy the nondiscrimination testing requirements or take the necessary corrective measures can result in the inclusion of the discriminatory benefits in the income of highly compensated employees.