DCSA allows you to deposit up to $5,000 of your wages into your account.

Estimating Your Expenses
To determine how much to set aside for dependent care expenses, estimate how much money you will spend on each dependent during the year. You generally cannot change the amount of your annual deposits if your expenses change.

If you need a guide to estimate your expenses, see the DCSA Estimate Worksheet. Consider the following:

• Subtract anticipated time off from work and days you or your spouse will care for your dependents.

• Think about changes from part-time to full-time care when children are out of school for summer vacation, or are attending school part time before they enter first grade.

• Include any one-time expenses you plan to incur for registration or activity fees.

• Do not include separate fees for meal charges or transportation.

• Limit your estimates to an amount you know you will spend. Funds not claimed by 90 days after the end of the plan year will be forfeited.

Determining Individual Deposits
Once you have estimated your expenses and decided how much you wish to deposit for the year, the next step is deciding how your deposits will be deducted from your paycheck.

There are usually 26 bi-weekly paydays (and 12 monthly paydays) each year. The Dependent Care Spending Account can take a deduction from the middle 24 bi-weekly paydays. The program will not take a deduction from the first or the last payday. The first deposit must be deducted from the first eligible payday and the deductions must be done in consecutive paydays.

If you enroll during open enrollment, your first deduction will be the first pay period ending in January. If you enroll during the year, it will be the first pay period after you are enrolled. Follow this link for information regarding open enrollment.

You can decide the number of pay periods that you want to have a deduction. Some participants prefer to spread the deductions over all 24 pay periods so that each deduction is as low as possible. Other participants prefer the deduction amount to be very close to the amount they spend on child care every two weeks.

For example: The maximum of $ 5,000 divided by

24 pay periods = $208.33 deducted each payday
20 pay periods = $250 deducted each payday
10 pay periods = $500 deducted each payday

Please note:

• Every deduction will be the same amount unless you have a family or employment status change (see Enrollment Changes).

• Once the deductions begin, they will occur every pay period until you have reached your total annual deposit.

• Payroll deductions must be for a minimum of $10 if you are paid bi-weekly, or $20 if you are paid monthly.

• For employees who enroll during open enrollment, the first deduction will be taken from the paycheck which reflects work for the first pay period in January.

• For employees who enroll during the calendar year, the deduction will start with the first available paycheck after you enroll.

• You may experience an interruption in deposits during the year. If you (or your spouse) are not working, then the IRS does not consider child care expenses work-related. If you anticipate an interruption in work for either you or your spouse, you may stop the deductions 60 days before or after the interruption.
  
  If you take a leave of absence for disability or Workers' Compensation, your payroll deductions may stop automatically.
  

  After you resume working and your spouse is working, looking for work, or attending school, then you may enroll again. At that point, you may recalculate the amount of each payday deposit to receive the maximum benefit.
  
  If you take a leave of absence for disability or Workers' Compensation, your payroll deductions may stop automatically.

Withdrawing Funds
To withdraw funds from your account, you must complete a Withdrawal Request and send it to Benefits Administration Services. The federal regulations require the signature of your provider to give "third party verification of the expenses incurred". Each withdrawal request must have an original signature. However, if your expenses are easily predictable, there is an alternative. Your provider may sign a letter verifying your projected expenses as a substitute for each individual form. You will receive a sample letter to give to your provider. The letter must contain the pertinent information in section B and C of the Withdrawal Request form.

Most participants submit a Withdrawal Request for every two-week pay period. Claims which are received and time-stamped in Benefits Admininstration by 4:00 PM on the Wednesday before payday will be reimbursed by the following pay day. The withdrawal request may include expenses incurred through the end of the two week pay period.

Reimbursements are issued as separate checks or direct deposit. Direct deposit of DCSA reimbursements is highly recommended.

Always state your actual expenses on your Withdrawal Request.

Any funds not reimbursed to you will remain in your account until additional expenses are incurred and a Withdrawal Request is submitted.

Reimbursements can be deposited directly to your bank by electronic funds transfer (direct deposit) or will be given to you as a separate check. The state cannot directly pay your child care provider with your reimbursement payment.

Forfeiture
The deadline to receive reimbursement is 90 days after the end of the calendar year (usually March 31). To receive reimbursement by the deadline, you must submit your Withdrawal Request by the Wednesday preceding the last payday in the first 90 days of the calendar year.

For example, if you incur an expense for dependent care in 2007, you must request reimbursement for that expense by March 24, 2008.

Any funds unused 90 days after the end of each plan year must be forfeited by the employee. Therefore, you should limit your deposits to an amount that you know you will incur in reimbursable expenses.