Dependent Care Reimbursement Account (DCRA) provides for the payment of certain dependent care expenses (e.g., day-care center expenses for dependent children under age 13) from the employees pre-tax income, through a special tax-free account set up for this purpose.
Each month, the amount the employee designated at the time of enrollment is deducted from their salary before income and Social Security taxes are withheld. These funds are held in the employees personal DCRA until they incur eligible expenses and file a claim for reimbursement. Even when paid out as reimbursements, the funds remain tax-free. Tax-free DCRAs are governed by a number of rules; most of these rules are set by the Internal Revenue Service (IRS).
Note: IRS rules require re-enrollment each tax year an employee wishes to participate in a DCRA.
It is strongly recommended that, before enrolling in the program, employees carefully read the information contained in the DCRA brochure. DCRA brochures, enrollment forms and claim forms are available upon request at the Customer Service Center in the Human Resource Services Department (CLA Building 98, Room B1-20). In addition, employees may want to discuss the program with their personal tax advisor regarding the advantages/disadvantages of participating in a DCRA.
Employees currently contributing to a DCRA who have questions regarding claims processing, should contact ASI at (800) 659-3035 or www.asiflex.com.
Benefits eligibility is not a requirement to enroll in DCRA.