Reimbursement timing question

[Guest Tbrown]

Can anyone here tell me what the regs say regarding the required time that dependent care expenses should be reimbursed? The situation I have is someone with weekly payroll who also submits the claims weekly. Can they be reimbursed monthly, bi-weekly, etc. And does it need to be spelled out in writing how often they need to be reimbursed?

thanks,

Tim

[papogi]

The only specific IRS guidance on this is that funds must be “available at all times.” If monies are paid at least monthly, they are considered available at all times [1.125-2(Q7)(B)(2)]. I’ve never seen anything that says that this must be in writing for employees, but I would recommend doing so.