Please Note:
- You must be paying US income tax to be eligible for this benefit.
- You will need to decide which is more beneficial to you and your family - The Childcare Benefit (The Childcare FSA) or the Dependent Care Tax Credit.
Overview
The Child-Care Benefit is available to Reliant field workers and employees who need or wish to provide child care for a dependent. Any Reliant employee may elect this benefit (it doesn't matter how many hours you are employed per week by Reliant), as long as the child care costs the employee is incurring and seeking to reimburse from the plan are related to the employee and his/her spouse working (or seeking employment). This benefit is part of Reliant's Cafeteria Plan, which allows pre-tax wages to be used for certain benefits. Some of the IRS requirements to utilize the Child-Care benefit include:
- The person receiving care is a dependent in your home.
- If both parents live in the home, both parents are working or actively seeking work.
- Child care is provided in manners compliant to IRS requirements.
- See exclusions listed below in FAQ's: "What type of child care is not eligible for reimbursement?"
- Maximum reimbursement allowed is:
- $5,000 annually per household, if you are married and filing jointly or single, filing head of household.
- $2,500 annually per employee, if you are married and filing separately.
Maximum reimbursement cannot exceed either parents individual income.
How Do I Utilize This Benefit?
In order to take part in the benefit, you must enroll in the benefit annually during Open Enrollment or at the time of a qualifying event. If you miss Open Enrollment, you may submit a Cafeteria Form by December 20 to affect the following year. These qualifying events include birth, adoption or foster placement, the return to work of either parents or a significant change in income.
When the Child-Care Benefit is chosen, you select an amount to be deducted from your pre-tax earnings each paycheck for the entire year.
- The funds will be held in a special account for you at Reliant.
- You may then submit your child-care receipts on the child-care reimbursement form found on Solomon.
- The reimbursement you submit will be eligible for payment up to the balance that has been reserved from your paycheck at the time of the reimbursement request, or will be held until sufficient funds have been withheld from your pay. We are unable to partially pay (split payment into multiple months).
- Child-Care Benefit funds can not be rolled forward to next year. Excess funds are distributed among all participants, so plan your deduction accordingly.
- IRS form 2441 must be filed with your tax return for any tax year that you utilize this benefit.
If you desire to elect the Child-Care Benefit, you will need to enroll using the form linked to below to sign up for your Child-Care Benefit employee contribution.
How Does This Benefit Help Me?
How Long Does My Election of This Benefit Last?
You may not make any changes to your contribution until the next open-enrollment period. This contribution remains in effect even if your employment becomes benefits ineligible. However, a change in employment or income affecting you or your spouse is a qualifying event. If there is a change, you must reach out to payroll@reliant.org to seek a change to your contribution.
Excess contributions not used for this year's child-care reimbursements will be distributed to all participants in the child-care plan based on % of contribution. Your unused contributions will not be returned individually to you, so set your contribution modestly.