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Dependent Care Reimbursement Accounts

Dependent Care Reimbursement Accounts

The CSU Dependent Care Reimbursement Account is a voluntary benefit for eligible employees that offers significant tax advantages and could increase an employee’s take home pay. The Plan allows for the reimbursement of out-of-pocket dependent care expenses from money deducted from an employee’s paycheck before federal, state and FICA taxes are deducted. Taxable income on an employee's annual W-2 statement will be reduced by the amount placed in the account. Expenses eligible to be reimbursed from the CSU Dependent Care Reimbursement Account are expenses for certain dependent care if the care is required in order for the employee (spouse) to work. Eligible dependents for whom the DCA reimbursements can be claimed are:

  • A child under age thirteen (13), for whom an employee or spouse can claim dependent status on their income tax return, 
  • A spouse who is physically or mentally unable to care for him/herself, or
  • A financially dependent member* of an employee's household, who regularly spends at least eight hours each day in the employee’s home. 

*Including an employee’s domestic partner if the domestic partner is a dependent.

Employees may contribute any amount from a minimum of $20 per month to a maximum of $416.66 a month ($5,000 annual maximum).  An after-tax administration fee is deducted from each monthly pay warrant in which a contribution is taken. 

If an employee is married and filing a separate tax return, the annual maximum is $2,500. If an employee or spouse's earned income is less than $5,000 a year, the maximum contribution is equal to that person's earned income. 

Claims reimbursements are processed daily.

For additional information regarding the DCRA plan, please refer to ASI's Online Customer Service Center, ASI/Flex Direct Deposit Application, the Dependent Care Reimbursement Account Brochure, Administrative Guide and/or appropriate CSU Technical Letter(s).