What is DCAP?
DCAP is a Flexible Spending Account (FSA). It is a pre-tax benefit account that you can use to pay for dependent care services, such as preschool, before/after school care, or elder daycare.
How Does DCAP Work?
- Begin by estimating your eligible, out-of-pocket dependent care expenses for the upcoming year.
- Use your estimate to enroll in DCAP.
- The money you elect will be automatically deducted from your paycheck on a pre-tax basis.
- Submit claims to PacificSource for reimbursement of qualifying expenses.
How much can I contribute?
- For 2025, the annual maximum election goal for DCAP is $5,000 per family. ($2,000 if married filing separately)
- For 2026, the annual maximum increases to $7,500 annually ($7,500 per family ($3,750 if married filing separately)
- Two-earner households may need to coordinate to avoid exceeding the limit. In shared custody, only the parent claiming the child as a tax dependent can use DCAP for expenses while the child is in their care.
- Please consult with your tax professional if you have questions about whether DCAP or the Federal Child and Dependent Care Tax Credit (CDCTC) would be more financially beneficial for your family.
Important Facts about DCAP
- DCAP elections are available in your FSA account after being deducted from your paycheck.
- There is no carryover associated with DCAP; unused funds are forfeit ("use it or lose it").
- Eligible expenses incurred through 12/31 of the plan year may be submitted for reimbursement through 3/31 of the following year.
- IRS regulations do not allow employees to receive DCAP claim reimbursements during a leave of absence (paid or unpaid), plan accordingly.
Examples of DCAP-eligible expenses that would qualify for reimbursement:
- Before and after-school care
- Day care in centers, or at home care (babysitter/nanny)
- Adult daycare centers
- Preschool
- Summer day camps
Examples of ineligible expenses: meals, overnight camps, medical care, educational expenses / tuition, kindergarten, misc fees (activity fees, field trips, etc.)
When can I sign up?
- New hires can sign up within the first 31 days of employment.
- Every Open Enrollment period (Oct. - Nov.) you can sign up for MERP/DCAP for the following plan year.
- You may also be able to change or enroll during the plan year due to certain qualifying events (new or change in your dependent care expenses, new child, marriage, some job changes).
Can I change the amount I am enrolled in?
Yes, if you have a provider change or qualified family status change:
- Any change in child or elder care provider or change in provider cost or coverage.
- Marriage, divorce, or legal separation.
- Birth or adoption of a child.
- Taking an unpaid leave of absence.
- If you or your spouse/partner's schedule changes, affecting the need for dependent care.
- Make changes using Workday (Change Benefits > Dependent Care Provider or Cost Change), or by contacting the Benefits Office at employee.benefits@multco.us. If submitting your request through Workday, please include the reason for the change. Changes must be requested within 60 days of the qualifying event and are effective the first of the month on or following the change request and receipt of any needed supplemental documentation by the Benefits Office.
DCAP Forms
- DocumentFSA MERP/DCAP Reimbursement Form (123.92 KB)
- DocumentFSA Direct Deposit Setup (99.36 KB)
- DocumentDependent Care Recurring Expense Form (142.65 KB)
DCAP Documents and Information
- Document2025 FSA - MERP & DCAP Summary Plan Description (400.34 KB)
- Document2025 FSA - MERP & DCAP Plan Document.pdf (556.59 KB)
- PacificSource Reimbursement Instructions
PacificSource Administrators
Customer Service: Toll Free 800-422-7038 -- pacificsource.com