IQVIA Benefits Handbook
THE DEPENDENT CARE FSA
If you and your spouse (if you are married) are employed, or your spouse attends school full-time, or is disabled and incapable of self-care, you may contribute pre-tax money to a Dependent Care FSA to cover expenses for the care of dependent children or adults while you are at work. Note: The Dependent Care FSA is for reimbursement of dependent day care expenses only and not dependent health care expenses.
Annual Contributions
Each year, you may elect to have between $60 and $5,000 deducted from your pay on a pre-tax basis to fund a Dependent Care FSA. Annual contributions are deducted evenly from each of your paychecks throughout the year.
Your Dependents
Eligible dependents for the purposes of the Dependent Care FSA are different from those eligible for other benefits, including the Health Care FSA. Dependent Care FSA eligible dependents include:
  • Children under age 13 who you claim as dependents on your federal tax return.
  • Children under age 13 for whom you have legal custody and do not claim as an exemption on your tax return.
  • Any person (child, spouse, elderly parent) who is physically or mentally incapable of self-care for whom you are entitled to claim as a dependent on your federal tax return and who lives with you for more than one-half of the year.
For dependents who are not a "qualifying child," the dependent cannot earn gross income in excess of the annual exemption ($4,300 in 2021).
Contribution Limits
Your annual contributions are reduced from $5,000 to $2,500 if:
  • You are married, and you and your spouse file separate tax returns.
  • Your spouse contributes to a dependent care account.
Please note: The IRS dependent care limit per family is $5,000.
Eligible Expenses
The Dependent Care FSA pays for IRS approved dependent care expenses that you and your spouse (if married) incur while working or looking for a job. To verify IRS eligibility, you may log on to the IRS website at www.irs.gov or call 800-829-3676 and request Publication 503.
The following are examples of expenses that may be eligible for reimbursement:
  • Home-based daycare providers who comply with all state and local regulations.
  • Individuals, including relatives, who provide care in or outside your home (other than your dependents or your children under age 19).
  • Licensed daycare centers for children and adults, and nursery schools.
  • Nanny expenses for services provided in your home.
  • Summer day camp.
Ineligible Expenses
The following are examples of expenses that are not eligible for reimbursement:
  • Care provided by your spouse, your children under age 19, or any other dependent.
  • Care provided for non-work related reasons.
  • Educational expenses, supplies or meals unless these costs can't be separated from an eligible expense.
  • Elementary school fees and expenses (kindergarten and beyond).
  • Expenses paid to a housekeeper, maid, cook, etc., unless specific to the care of your dependent.
  • Expenses reimbursed through your spouse's dependent care account.
  • Expenses you plan to take as a tax credit on your federal income tax return.
  • Overnight camp.
Accessing Dependent Care FSA Funds
The FSA debit card gives you direct access to your Dependent Care FSA. When you enroll in the Dependent Care FSA, you will automatically receive an FSA debit card (Benefits Debit Card). The FSA debit card helps eliminate the need to file claims every time you incur an eligible expense.
Automatic Dependent Care Reimbursement
With the automatic dependent care reimbursement option, you submit one form per year for each day care provider you use and reimbursement is sent automatically. Fill out the Dependent Care Documentation Form available from www.yourflexbenefits.mercermarketplace365.com.
Filing a Traditional Claim
To file a traditional claim, you may do so via:
  • Fax
  • Online
  • Mail
For details on claims filing, go to www.yourflexbenefits.mercermarketplace365.com.
Submit Your Claims by March 31
Remember to submit your claims by March 31 of the following year.
You have until March 31 of the following year to submit expenses incurred during the current calendar year. If you think that your claim will be delivered after March 31, you should send it "Certified" in order to confirm that you mailed it by March 31. If you do not submit claims by March 31, you will forfeit any money remaining in your accounts.
For the Dependent Care FSA, you will be reimbursed up to the amount of your current account balance.
Dependent Care Example
Assume you have $3,000 deducted from your pay to fund your Dependent Care FSA for the year ($250/month). In January, you incur an eligible dependent care expense of $300. You will be reimbursed for $250 (your current account balance) and will automatically receive a check for the remaining $50 when you have enough money in your account to cover the reimbursement.
Discontinuing Your Dependent Care FSA
If you discontinue your Dependent Care FSA as a result of a life status change, you may not submit expenses incurred after that date. You may continue to submit claims for expenses incurred before the change in coverage for 90 days after your contributions end. According to IRS regulations, if there is money remaining in your account after you have been reimbursed for expenses incurred before the change, it will be forfeited.