Cafeteria Plan DCAP Reimbursement

[Guest dln1151]

An employee participating in a DCAP must pay in advance (now) for the summer care of her children. Am I correct that she cannot be reimbursed until the care has actually been provided (meaning the end of the summer)?

[jsb]

Why must she pay now? A change in the need for care is a qualifying event (if permitted under your plan) that would allow the employee to make an election change. Yes, the care must be actually provided in order for reimbursement to be made from the DCAP account. You wouldn't necessarily need to wait until the end of the summer for reimbursement; reimbursements could be made pro rata as care is incurred based on the payment dates authorized by your plan.

[Guest dln1151]

Why must she pay now? A change in the need for care is a qualifying event (if permitted under your plan) that would allow the employee to make an election change. Yes, the care must be actually provided in order for reimbursement to be made from the DCAP account. You wouldn't necessarily need to wait until the end of the summer for reimbursement; reimbursements could be made pro rata as care is incurred based on the payment dates authorized by your plan.

Thank you for your response. The employee must register for summer day care now and payment is due with the registration.

[leevena]

I read this differently than JSB. It sounds like the question has to do with an employee who is already in a dep care fsa account and the only change is that the day care provider wants the entire summer payment (I am assuming 3 months) paid at registration. I agree with JSB's comments about payments.

Also, if that is the situation, then I hope the day care provider was wearing a mask like all good thiefs should!

[jsb]

I, too, now see this differently than I did my first time.

And I agree with leevena.