Jefferson Lab regular and term staff, with dependents who are under age 12 or with a disability, may benefit financially by using the Lab’s Dependent Care Assistance Plan. The plan allows employees to set aside a certain amount of their pre-tax pay to cover dependent care expenses.

"Depending upon the family, up to $5,000 a year in dependent care expenses may be deducted from an employee’s pre-tax pay," explains Kisha Owens, Human Resources. "The amount you choose to set aside from each pay check is deducted from your pre-tax pay – reducing your taxable income."

DCAP is one of the Lab’s pre-tax Flexible Spending Accounts. The Lab is also introducing a new HealthCare Spending Account. This program works similar to DCAP: regular and term employees may set aside up to $5000 on a pre-tax basis for out-of-pocket healthcare expenses. "If these plans can be of benefit to you, be sure to complete enrollment packages for both flexible spending accounts – dependent care and health care," Owens advises. Information sessions for employees are scheduled for Nov. 15, 17, and 22.

Currently, Lab employees may have medical and dental insurance premiums deducted on a pre-tax basis. Employees may enroll in this program in the Spring during the annual Benefits Open Enrollment.

The dependent care benefit may be used to pay dependent care expenses, for youth aged 12 and younger or disabled family members, while the Lab employee is at work and his or her spouse is at work or school.

When enrolling in the program, an employee elects to deduct a specific amount out of each pay check. The money is put in that person’s DCAP account and when the employee submits receipts of paid dependent care expenses for that month – to the JLab Compensation & Benefits representative – the employee is reimbursed. Reimbursement checks are issued twice a month.

An employee may use any licensed day care center or day camp. "However, a ‘qualified person’ caring for your children in your home, cannot be anyone you claim as a dependent and must have a tax identification number or a social security number," according to Owens.

Open enrollment for the Dependent Care Assistance Plan takes place once a year; the next enrollment period runs from Nov. 15 — Dec. 3. Mid-year changes to an employee’s DCAP enrollment are only allowed if there is a change in family status: marriage, divorce, birth or adoption of a child, death of a spouse or child, or a change in the spouse’s employment status.

"DCAP may be used instead of, or in some cases in addition to, the dependent care tax credit on a Lab employee’s federal income tax return," Owens points out. "Before deciding to participate in DCAP, employees should determine whether they would save more tax dollars by claiming the child care credit for some or all of their dependent care expenses."

"However," she cautions, "participants need to accurately calculate their annual child care expenses before enrolling or updating their enrollment in the program, and submit their reimbursement paperwork in a timely manner because, according to federal tax law, any funds left in a DCAP account at the end of a year are forfeited."

For more information, contact Human Resources to obtain a copy of the DCAP Fact Sheet. For answers to questions, or for more information on enrollment or reimbursement procedures, email Owens at owens@jlab.org or call her at ext. 7068.

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Updated September 16, 2004