Dependent Day Care Flexible Spending Account

This program is sponsored by the State of North Carolina as part of the NCFlex benefits program. Aon Consulting is the plan administrator for the State.
 

The Dependent Day Care Flexible Spending Account (DDCFSA) offers tax-free reimbursement for child care and adult day care expenses.

All permanent part-time (20-29 hours per week) and full-time (30 or more hours per week) employees can elect coverage.

Premiums are deducted on a pre-tax basis.

The employee decides on the amount of their annual contribution. The annual contributions must be at least $120 per year and no more than $5,000.

If you are paid on a monthly basis, the full monthly contribution is deducted from each paycheck. If you are paid on a biweekly basis, half of your monthly contribution is deducted from the first two paychecks of the month.

You must enroll within 30 days of your hire date or a qualifying family status change, or during annual enrollment.

The Dependent Day Care Spending Account requires employees to re-enroll every year.

The Dependent Day Care Flexible Spending Account is designed to benefit employees with young dependent children or disabled dependents of any age. Eligible day care expenses may be reimbursed for:

• your "qualifying child" (including a stepchild, foster child, child placed for adoption, or younger brother or sister) under age 13 who has the same principal residence as you for more than 1/2 the year and does not provide more than 1/2 of his or her own support during the calendar year; or
• your qualifying child (as defined above) of any age, spouse or other dependent who receives over 1/2 of his or her support from you (e.g., your disabled elderly parent), who is physically or mentally incapable of caring for himself or herself and has the same principal place of residence as you for more than 1/2 of the year. To reimburse day care received outside of your home, your disabled dependent must spend at least eight hours per day in your home.

Special rules apply for divorced or separated parents with dependent children. Generally, your child must be your dependent for whom you can claim an income tax exemption. In other words, you must have legal custody of your child for over 1/2 of the year for your day care expenses to be reimbursed through the DDCFSA.

Claim forms are available from the NCFlex Web site. Remember to submit any necessary supporting documentation to Aon Consulting, along with your claim form. Mail or fax claim forms to:

Aon Consulting Flex Administration - #0001
Post Office Box 3002
Arlington Heights, IL 60006-3002
Phone: 877-371-2926
Fax: 866-887-3212

If you fax a claim form, be sure to save the fax confirmation statements and follow up with Aon to ensure your fax was received by calling 877-371-2926 the next day.

UNC-Chapel Hill's company number is 0001.

Reimbursement claims must be received by Aon Consulting no later than March 31 of the following year. (For example, you would have until March 31, 2008, to file a reimbursement for an expense that occurred between January 1, 2007, and December 31, 2007.)

IRS regulations require that any contributions not claimed by the March 31 deadline are forfeited. There are no options for a rollover or refund to another tax year.

Aon processes payments weekly. If the claim is received by Thursday with all the necessary documentation, it will be paid as of Friday of the following week. Reimbursement amount is based on your account balance at the time the claim is processed, not on the amount of your annual contribution. (This is different than the Health Care Flexible Spending Account.)

Aon will directly deposit claim payments into the account you have designated for your University pay check, unless you decline the direct deposit option on the enrollment form.

If you have questions about the benefits offered through the Health Care Flexible Spending Account, please contact your department's Benefits Specialist.

If you have questions about processing a claim, or have experienced problems in receiving a reimbursement, contact Aon Consulting at 877-371-2926.

The Benefits Administration Department, Office of Human Resources, is responsible for reviewing and revising as needed the content of this page.

The information contained in this website is not a contract and is subject to change. It should be understood that explanations in this summary cannot alter, modify or otherwise change the controlling legal documents or general statutes in any way, nor can any right accrue by reason of any inclusion or omission of any statement in this presentation. The most current information will always be found at the benefit carrier's home page. The Office of Human Resources designs these pages to be as current as possible; however, the benefit information provided herein is always subject to change.