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Excerpt

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.

  1. The funds will be held in a special account for you at Reliant. 
  2. You may then submit your child-care receipts on the child-care reimbursement form found on Solomon. 
  3. 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). 
  4. Child-Care Benefit funds can not be rolled forward to next year. Excess funds are distributed among all participants, so plan your deduction accordingly.
  5. 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? 

The Child-Care Benefit
Note
For a complete description of the child-care benefit, see Cafeteria Plan

 

Reliant offers a cafeteria benefit plan, which allows employees to "select" certain benefits they would like to participate in and the Child-Care Benefit is one of those benefits. 

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employee monthly contributions are deducted from your paycheck before tax.

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These dedicated child-care

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reimbursement funds are not part of funds applied to normal reimbursements

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but are set aside specifically for

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child care.

 

For a complete description of the child-care benefit, please read the Cafeteria Form.  If you desire to elect the Child-Care Benefit, you will need to also enroll in the cafeteria plan to sign up for your Child-Care Benefit Employee Contribution. 

Common FAQ:

When are chilcare reimbursement paid?

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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.

FAQ

UI Expand
titleWhen are child-care reimbursements paid?
Child-care reimbursements are generally paid out on the 25th of each month (or the closest business day prior, when the 25th falls on a weekend or holiday.) Expenses must be submitted before the 20th of each month in order to be eligible for payment on the 25th. Reliant waits until payroll is processed and posted to determine if there are sufficient funds in the employee's child-care account to pay a reimbursement.

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UI Expand
titleIf I have back pay or other back reimbursements, does that affect a

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child-care reimbursement being paid out

...

?
 No, child-care reimbursements are not part of the order of pay. The monthly child-care election is deducted from your payroll pre-tax

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. Therefore, a child-care reimbursement can still be paid even if you are in a

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back pay situation. There just

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needs to be sufficient funds in the child-care account to pay the reimbursement.


UI Expand
titleWhat

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child-care costs are eligible for reimbursement?
Child-care reimbursement is available for child-care services while

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you and your spouse ,if you are married

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, are either working or looking for employment

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. This can be for child-care services during the day or child-care services needed at night, as we know sometimes

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field workers have non-traditional work hours.


UI Expand
titleIs there an age limit

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of the child for the

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child-care costs to

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be eligible for reimbursement

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?

When your child is below the first grade, the cost associated with

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child care, separated out from the cost of schooling

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, is

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reimbursable.

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If the cost of schooling is incident to and cannot be separated from the cost of child care, then the total cost is eligible for reimbursement.

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Kindergarten is not

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reimbursable.

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 When your child is in first grade or higher, but under age 13, the cost of

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child care must be separated from the cost of schooling to be eligible for reimbursement.

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This would apply to before- and after-school child-care programs/arrangements

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.


UI Expand
titleAre

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child-care reimbursements paid

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as funds are available

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or do I have to have the full

...

amount available for a reimbursement to be paid?
Child-care reimbursements must be paid in full amounts

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, just like reimbursements. If your July child-care reimbursement is for $600 and there is only $500 in your child-care account, Reliant would wait to pay the reimbursement until the account has sufficient funds to pay the full reimbursement.

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However, we do allow a

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field worker to submit a large reimbursement but then request it be paid out at a lower amount (see below). 


UI Expand
titleIs there a way to request a submitted

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child-care reimbursement be paid out at a lower amount?
 Yes.

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This action would forfeit the remaining amount from being paid out. You must initiate the request to reduce a child-care reimbursement amount. This can be done by sending an email to 

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reimbursements@reliant.org such as, "Please pay my January

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child-care reimbursement of $1,000 using the $500 that is available in my

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child-care account."


UI Expand
titleCan I pay a relative for

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child-care costs?
Yes.

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You can pay a relative as long as that relative is not a

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dependent child under the age of 19 that resides within your home.


UI Expand
titleWhat types of

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child-care expenses are NOT eligible for reimbursement?

The following expenses are not eligible for reimbursement under an IRC Sec. 125 or 129 plan.

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  1. Expenses for kindergarten, if the expenses are primarily educational in nature, regardless of half- or full-day, private or public school, state mandated or voluntary.

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  1. The cost of schooling for your child(ren) enrolled in kindergarten or higher.

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  1. The cost incurred to send your child(ren) to overnight camp.

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  1. The cost of transporting a qualifying person to and from a care location or from a care location to school.

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  1. Dependent care costs you pay while you are off from work because of illness or injury.

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  1. The amounts you pay to a dependent that you or your spouse, if you are married, can claim as an exemption.

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  1. Daycare for a child aged 13 or older.

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  1. Nursing

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  1. homes.


UI Expand
titleIs there a deadline for submitting

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child-care reimbursements to Reliant for a given year?
Yes. We must receive all

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child-care reimbursements for the previous year no later than January 31 of the following year.

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UI Expand
titleWhat if there are funds left over that I don't have

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reimbursements to submit?

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What happens to my money?

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Child-care funds do not roll over. Therefore, if you have $400 in the child-care account that is not used for costs incurred by December 31st, you will forfeit a portion of the funds. Any remaining balance not used is divided amongst all of the

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plan participants. We then pay that money back to the participants as taxable income in the following year.

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Therefore, if you have remaining funds in the

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child-care account, you will likely only get some of the money back, as some of the money will also go to the other participants in the program.


UI Expand
titleAre

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foster care

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dependents eligible for this benefit?
 A foster child is eligible as long as the child is considered a dependent of the employee for federal income tax purposes.

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This means the employee must provide more than half of the financial support (Sec. 152(c)(1)(D)), the foster child must live with the employee for more than one-half of the year (Sec. 152(c)(1)(B)), the foster child must be less than 19 or a student less than 24 on December 31 (Sec. 152(c)(1)(C)), and the foster child was placed with the employee by an authorized placement agency or by judgment, decree, or other order a court (Sec. 152(f)(1)(C)). And the placement is formal (see the preceding sentence). (This is an IRS regulation

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.)


Full Dependent Care Policy 

Enrollment Form 

  • Cafeteria Plan Enrollment Form should be used during the year for qualifying events and by newly hired employees (within 30 days of their hire date). 

Reimbursement instructions for monthly child-care expenses

 

...

Note
titleMonthly Instructions
 Please

Please fill out your reimbursement forms and submit them to

finance@reliant

reimbursements@reliant.org on a monthly basis.

 

If you have multiple service providers in a given month, please

 fill

fill out one reimbursement form for the entire month for each provider

,

and attach all receipts for the amounts paid to that provider within the month.

  For

 For example, if you

have 2

have two babysitters that you paid weekly, you can either create one receipt for all the weekly payments for each babysitter to sign (so you create a monthly

summay

summary receipt for the babysitters to sign) or attach a receipt for each weekly amount paid to the babysitters within the month. Then you would fill out one reimbursement form for each babysitter for the month.

Reimbursement form

UI Button
colorblue
iconlink
titleChild-Care Reimbursement Form
urlhttps://docs.google.com/a/gcmweb.org/spreadsheets/d/1YGL8piQ4CNUqc81FuMnNzkbsyPcnP2NFpHi4bf_R8M0/copy
 

  • The top portion of the form: pretty self-explanatory ( Name, FD#, address, etc).
  • Amount of reimbursement: enter the full amount of the child care paid for dates of service
  • Dates of service: Enter starting and ending dates. We ask that the form be for only one-month of service (same as for reimbursements).
  • Type of Service Provider: Select either Individual or BusinessPlace Service Provided: Name of the child care facility
  • Service Provider Name: Name of individual or business providing the child care
  • Service Provider Address/Phone: no explanation needed
  • Service Provider SSN# or Employer ID: If you selected "Business" as the type of provider, this will be the business employer ID # if a child care facility is providing the service (we no longer require the social security # of the individual providing child care services)
  • Check the boxes that apply (per instructions on the form)
  • Sign the form and print/scan or type your name
  • Use the Receipt tab to include a scan or photo of your child-care expense receipt
  • Share the form with reimbursements@reliantEmail to finance@reliant.org (using your reliant.org email address) and attach your receipt . If you haven't added the receipt to the Receipt tab, email the scan(s) as attachments to reimbursements@reliant.org.

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