A dependent day care flexible spending account (FSA) is a pre-tax benefit account that helps employees pay for eligible child care or dependent care expenses. These accounts allow employees to set aside pre-tax dollars to cover expenses for daycare, preschool, after-school programs, and elder care for qualifying dependents.
To be eligible for reimbursement, expenses must be incurred (not just paid) while the employee and, if applicable, their spouse are working, looking for work, or attending school full-time. The dependent must be under the age of 13 or an adult dependent who is physically or mentally unable to care for themselves.
What Documentation Is Required for Reimbursement?
If you use BAS for FSA administration services, the following rules apply.
To ensure a smooth reimbursement process, employees must submit a completed dependent day care FSA claim form along with supporting documentation. Here’s what should be included:
- Dependent day care FSA claim form:
- A separate form is required for each dependent.
- The form must be signed and dated by the employee.
- Dependent’s information:
- Provide the name of the qualifying dependent for whom care was provided.
- Provider’s information:
- The provider must sign and date the claim form.
- Alternatively, a receipt from the provider can be submitted.
- Taxpayer identification number (TIN) or social security number (SSN):
- The provider’s TIN or SSN must be included.
- If unavailable, a statement explaining your attempt to obtain it is required.
- Description of services:
- A brief explanation of the services provided (e.g., daycare, elder care).
- Claim amount:
- Enter the total amount requested for reimbursement.
- Supporting documentation:
- Receipts or other proof of expenses incurred.
Are Receipts Always Required?
If the care provider signs and dates the claim form, receipts are not required. However, if the provider does not sign the form, you must submit receipts containing:
- Provider’s name and address.
- Dependent’s name.
- Amount paid.
- Description of services.
- Date of service.
What If the Provider Refuses to Provide a TIN or SSN?
If your provider does not give you their TIN or SSN, you must:
- Document your attempt to obtain it by submitting a written statement explaining the request and the provider’s refusal.
- Include receipts with details such as the dependent’s name, provider’s information, date of service, description of services, and amount paid.
Important Reminders
- Credit card receipts and canceled checks are not acceptable proof of expenses.
- Claims missing required information may be delayed or denied.
- Always ensure that all documentation complies with IRS regulations to avoid issues with reimbursement.
By following these guidelines, employees can ensure a smooth and timely dependent day care FSA reimbursement process. If you have any questions, please reach out to HR for further assistance.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
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