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NTC
Homepage > Circle Of Life > Dependent
Care Assistance Program
Dependent Care Assistance Program
UAW-represented
Chrysler workers now have a negotiated benefit that offers a tax break worth hundreds
of dollars a year to those who must pay for the care of dependents.
The savings are possible
through the Dependent Care Assistance Program, which allows workers to
create a
flexible expense account earmarked for child care or other qualifying dependent
care needs, such as day care, before- and after-school programs or help
with
an elderly parent or ailing spouse.
Workers may set aside up
to $5,000 a year for this account, using money that is exempt from state, federal
and Social Security taxes, much like pretax contributions to a 401(k) plan.
It works like a bank account.
When enrolling, participants determine
how much money they anticipate spending for eligible services during the upcoming
year, up to the $5,000 limit. The
money will be deducted directly from workers' paychecks and deposited into their
accounts.
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If
your family or your dependent care situation changes, you can enroll
or change your status (within 31 days of the event) by calling Benefit
Express toll-free at (888) 456-7800.
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Then, each time you pay
your child care or elder care provider, the provider signs your claim form (see
the box below) or gives you a receipt to attach, and you fax or mail the claim
form to United Health Care, which promptly sends you a check drawn on your tax-free
account.
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Click
here to download a claim form.
Click
here to read or print the Dependent
Care Assistance Program handbook,
which fully explains the benefit.
You'll
need the latest version of Adobe Acrobat Reader to view and print
the files. If you don't have it, click "Get Acrobat Reader"
to download it for free.
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Workers are advised not
to put more money into their Dependent Care account than they anticipate using
over the course of the year, as any money left in the account at the end of
the year will be forfeited.
All UAW-represented Chrysler
employees should already have received a letter explaining the benefit. If
you still have questions, call the plan administrator, toll-free, at (877)
311-7849.
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