Dependent Care Reimbursement

[2muchstress]

What is the time frame that an employer has to reimburse an employee for dependent care expenses? Our company has always issued reimbursement checks on the same day each week, but recently (on more than one occasion) checks have not been issued and employees have been told that there is just no money in the account.

I am aware of DOL regulations regarding the timing of 401k deposits (as soon as the assets can be segregated from the assets of the corporation, but no later than 15 business days following the end of the month in which the deductions were withheld). Do these same rules apply???

Also, because employer has consistently paid claims on the same day each week for years, are they setting a precedence that claims must be paid on that day, especially if employees are relying on the reimbursement.

Any educational help is greatly appreciated. Thanks.

[papogi]

125-2 Q-7(B)(2) states that "reimbursement will be deemed available at all times if it is paid at least monthly..." That's all the guidance that the IRS gives on this. 401(k) rules do not apply.