Dependent Care Assistance Plan (DCAP)

Detailed information about DCAP

What is DCAP?
kids playing hula hoop

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.

Important Facts about DCAP

  • The annual maximum election goal for DCAP is $5,000 per family.
    • Married filing separately, the annual maximum is $2,500.
  • DCAP elections are available in your PacificSource account after being deducted from your paycheck.
  • There is no carryover associated with DCAP; unused funds are subject to the “use it or lose it” rule.
  • The 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

DCAP Documents and Information

PacificSource Administrators
Customer Service: Toll Free 800-422-7038 -- http://psa.pacificsource.com/PSA/

Last reviewed April 19, 2024

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