RCUH offers eligible employees (regular-status, 50% FTE or more) the opportunity to enroll in a Flexible Spending Account (FSA) Dependent Care for eligible childcare and senior day care expenses. (Please note the FSA Dependent Care is not for healthcare expenses for your dependents.)
An FSA is an employer-sponsored employee benefit program that allows employees to set aside pre-taxed dollars to pay for eligible expenses on a reimbursement basis. Contributions will be deducted from the employee’s paycheck and deposited into their National Benefit Services (NBS) Account. Amounts contributed are not subject to federal income tax, Social Security tax, or Medicare tax. Employees access the funds from their NBS Account to reimburse themselves for eligible expenses they paid for out-of-pocket. FSAs are a “Use It or Lose It” qualified benefit in accordance with the IRS code. Any unused funds at the end of the plan year (June 30th) will be forfeited (no carryovers allowed).
IMPORTANT: FSAs may not be advantageous for everyone. Dependent care expenses paid for with an FSA cannot also be claimed on an annual income tax return. You must identify all persons or organizations that provide care for your child or dependent on Form 2441 when filing your taxes, so be sure to consult your tax advisor to see if you and your family are eligible and if this benefit is right for your situation. RCUH will not be able to assist you with taxes.
Please note RCUH’s FSA is not an HSA/LFSA/HRA. RCUH also does not participate in Island Flex.
Our FSA is administered by the National Benefit Services (NBS).
The FSA Dependent Care can be used to pay for childcare expenses for your children under the age of 13 and/or day care expenses for your qualifying family member whom you claim as a tax dependent.
The IRS determines eligibility of dependent care expense – must be a work-related expense and for the care of a qualifying person only if their main purpose is the person’s well-being and protection. Allowable expenses include preschool, before and after school programs, and daycare.
Education expenses (schooling for a child in kindergarten and above), child support payments, and expenses that are not work-related (babysitting while you go to the movies) are not eligible.
See IRS Publication 503, IRS Child and Dependent Care Credit & and Flexible Benefit Plans, IRS FAQ Child and Dependent Care Credit & Flexible Benefit Plans.
Did You Know? The IRS determines eligibility of expenses, who is considered an eligible dependent, and the maximum annual contribution limits.
Helpful Tip! The IRS does not allow funds to be transferred between the FSA Dependent Care and the FSA Healthcare accounts, so make sure you enroll into the correct account. Requests to make a changes to dependent care contributions can be made due to a qualified status change, please contact RCUH Employee Benefits. Any unused funds at the end of the plan year (June 30th) will be forfeited.
