Interested in reducing your taxes? The California State University Dependent Care Account (DCRA) allows you to pay certain dependent care expenses from your salary before income and Social Security taxes are calculated and deducted. A monthly administration fee of $1.00 will be deducted from your salary on an after-tax basis.
Plan brochure can be downloaded through Adobe Acrobat or you can obtain hardcopies through the Office of Human Resources. You must re-enroll in the plan during the open enrollment period as this plan requires an annual enrollment.
New employees may enroll in the plan within 60 days of becoming eligible. Coverage will become effective on the 1st of the month following enrollment, subject to State Controller's Office processing timelines. Employees who do not enroll during the initial 60 days, will be eligible to enroll during any subsequent annual open enrollment period or due to a change in status.
You are eligible to enroll in the DCRA if you are in an Executive, Management Personnel Plan (MPP), Confidential or other non-represented position, or are covered by a collective bargaining agreement that provides this benefit.
Eligible dependents for whom DCRA reimbursements can be claimed are: a child or children under age 13 or a financially dependent member of your household who is physically or mentally disabled and who regularly spends at least eight hours per day in your home.
To enroll or re-enroll in the plan, employees must your election via MyHR and submit it to the Office of Human Resources.
Once you enroll, you will not be able to change your contribution amount until the next open enrollment period unless you have a change in status. If you have a change in status, you may increase (up to the appropriate IRS limit), decrease, start, or stop your contributions by filing a new Authorization Form within 60 days of the status change.
You can contribute any amount from a minimum of $20 to a maximum of $416.66 per month ($5,000/year).
The IRS may impose additional limits in special situations. It is strongly recommended that you consult with a tax advisor before enrolling in this account.
Your monthly contribution to your Dependent Care Account (DCRA) will be deducted from your paycheck and deposited into a special tax-free account. Deposited funds are held in your DCRA until you incur eligible expenses and file a claim form for reimbursement. Even when paid out as reimbursements, the funds remain tax-free.
Dependent care expenses may qualify for a tax credit on your income tax return. The credit you can claim is based on your adjusted household gross income and the number of eligible dependents you have. You should consider which method will offer you the greatest tax savings.
There is no established rule about who may benefit from one method or another; your own situation can be determined only by a close look at your records. Personal tax situations vary. You should carefully consider the impact a DCRA will have on your tax status. You may want to consult your financial planner or tax advisor.
Application Software, Inc. (ASI) is located in Columbia, Missouri and has participated as a TPA for flexible spending account plans since 1988. ASI will be mailing confirmation packets to enrolled participants by the beginning of the 2004 plan year. Packets will include a confirmation statement, an assigned personal identification number (pin), detailed account access instructions, a supply of claim forms, and a direct deposit enrollment form.
To obtain a claim form or file a claim on-line, visit ASI Flex
Completed claim forms should be mailed to ASI at the following address:
P.O. Box 6044
Columbia, MO 65202-6044
Reimbursements will be sent out on a bi-monthly basis based on the following payment schedule:
You have the option of receiving claim reimbursements by mail in the form of a check, or by direct deposit, if you submit a “Direct Deposit Authorization” form to ASI for processing. This form can either be downloaded from ASI Flex, or requested by contacting ASI at (800) 659-3035. If you choose to enroll in direct deposit, you also can request that reimbursement notifications and account statements be sent via e-mail, rather than U.S. mail..
Participants in the Dependent Care Reimbursement Account plan can access their account information by telephone or via the Internet:
You may file claims for expenses incurred during a plan year any time up to six months after the end of the plan year (June 30 of the next year).