The dependent care assistance program (DCAP) helps you pay for child care and elder care by allowing you to set aside a portion of your salary for eligible expenses. The money you set aside isn\u2019t taxed, so you save money on eligible expenses for services like preschool, day care, nanny fees, care for a person who is disabled, and other similar services. The exception to this is when your earnings are from an after-tax source, such as a stipend. In that case your DCAP deductions will be made on an after-tax basis, not a pre-tax basis.<\/p>\n
You choose how much of your salary goes into your DCAP fund, up to $5,000 in 2025. This limit will increase to $7,500 for 2026. Choose your contribution amount carefully. DCAP funds are \u201cuse it or lose it\u201d funds, and you must spend your entire yearly allotment before December 31 — or you\u2019ll forfeit unused funds.<\/p>\n
Enrollment is effective for one tax year only and does not automatically renew. To continue DCAP, you must re-enroll each year during open enrollment.\u00a0The DCAP accounts for UW employees are managed by Navia Benefits Solutions, a local company that administers benefits for organizations.<\/p>\n
You\u2019re eligible to enroll in\u00a0DCAP as long as you\u2019re eligible for PEBB benefits<\/a>. However, if you have a stay-at-home spouse, you\u00a0should not\u00a0 enroll in DCAP. You also can\u2019t enroll if you are a student whose wages are exempt from Social Security and Medicare or if you receive no income from a U.S.-based source.<\/p>\n You may enroll in DCAP at the following times:<\/p>\n If you enroll during the open enrollment period, your DCAP payroll deductions begin on the first paycheck following January 1. You can request reimbursement of\u00a0funds as soon as they are deposited into your account provided your eligible expenses have occurred in that same calendar year.<\/p>\n If you enroll due to a qualifying life event, your participation in the plan begins on the first day of the following month. Your payroll deductions begin in one to two pay periods, and the funds are available as soon as they are deposited into your DCAP account.<\/p>\n View the FSA and DCAP Enrollment Guide<\/a> and enroll through Workday. Contact UW Benefits<\/a>\u00a0if you have questions.<\/p>\n DCAP doesn\u2019t continue automatically. You must re-enroll through Workday each year during Open Enrollment.<\/p>\n While DCAP may not cover your entire child care or elder care costs, it does give you a helpful payment option that can reduce your federal tax obligation. The money deducted from your paycheck and put into your DCAP fund isn\u2019t taxed — you don\u2019t pay Social Security, Medicare, or federal taxes on that money. If your earnings are from an after-tax source, such as a stipend, then your DCAP deductions will be made on an after-tax basis, not a pre-tax basis.<\/p>\n This makes the cost of care cheaper. Many types of child-care are eligible including babysitting, au pair services, after school care, day camps, care by a relative, and others. Elder care costs and services for people who are disabled are also eligible.<\/p>\n But before enrolling in DCAP, you need to accurately estimate your care costs. The maximum amount you can set aside in DCAP in 2025 is $5,000 for those filing as married filing jointly or as single, and $2,500 if filing as married filing separately. For 2026 those filing as married filing jointly or as single can set aside $7,500, and $3,750 if filing as married filing separately. Since care costs are usually expensive, you may have no trouble spending your entire DCAP amount each year. However, you don\u2019t want to have any money left over at the end of the year because you\u2019re required to forfeit any unspent funds. Once you enroll, you can\u2019t change your deduction amount until next year (unless you experience a qualifying life event).<\/p>\n Once you know your DCAP amount for the year, you\u2019re ready to enroll. The amount you elect will be deducted from your paycheck in equal increments throughout the calendar year.<\/p>\n A qualifying dependent must be:<\/p>\n Any qualified dependent must be recognized by the Internal Revenue Service (IRS) as a dependent. Contact Navia Benefit Solutions <\/a>if you have questions about qualified dependents.<\/p>\n You can begin submitting reimbursement claims for eligible expenses on or after the first day of the\u00a0plan year, January 1. You can only be reimbursed up to the dollar amount you have in your DCAP account at the time you request reimbursement. You may submit claims for services as often as you like, but not until after the services have been provided.<\/p>\n DCAP funds can cover both child care expenses and elder care expenses. To learn which specific types of expenses are eligible and which are not eligible, see the list of eligible and ineligible DCAP expenses<\/a>.<\/p>\n Once you incur expenses, you have several options for submitting a reimbursement claim. Claims are processed by Navia, and you can submit a claim through your online profile<\/a>, using the MyNavia mobile app<\/a>, by sending an email<\/a>, or by mailing a completed claim form<\/a>.<\/p>\n If you have other questions about how claims work, see Navia frequently asked questions<\/a> or contact Navia directly<\/a>.<\/p>\n DCAP expenses must take place by December 31 each year. Submit all claims for reimbursement to Navia\u00a0no later than March 31<\/strong>\u00a0of the following year. Money left in your account after that date cannot be refunded and will be forfeited to HCA. This is called the “use it or lose it” rule.<\/p>\n During annual open enrollment, any eligible employee can enroll or re-enroll in DCAP and change their DCAP amount for the forthcoming year. To make changes during other times of the year or to enroll during other times of the year, you must experience a qualifying life event.<\/p>\n Once the event occurs, you have 60 days to make a change or enroll. Events that qualify include:<\/p>\n If you\u2019re unsure whether or not an event qualifies, contact UW Benefits<\/a>. Events that qualify are defined by the state in the Washington Administrative Code 182-08-199<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Pay tax-free for preschool, day care, nanny fees, care for a person who is disabled, and other similar services.<\/p>\n","protected":false},"author":9,"featured_media":0,"parent":1798,"menu_order":60,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"class_list":["post-138","page","type-page","status-publish","format-standard","hentry","search_bucket-page"],"acf":[],"yoast_head":"\nWhen you can enroll<\/h5>\n
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How to enroll<\/h5>\n
Re-enroll in DCAP each year<\/h5>\n
How DCAP works<\/h4>\n
What dependents qualify?<\/h5>\n
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Using your DCAP account<\/h4>\n
Eligible expenses<\/h5>\n
Submit a claim for reimbursement<\/h5>\n
Deadline for spending DCAP\u00a0funds<\/h5>\n
Qualifying life events for changes or special enrollment<\/h4>\n
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