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Dependent care account

A Dependent Care Account can help you manage your child day care or elder care costs. Save money by using tax-free dollars to pay for these expenses.
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Why enroll in a Dependent Care Account?

  • Click here to learn more about Dependent Care Accounts
  • Depending on your tax bracket, you could realize a tax savings of 15-30% on child day care or elder care expenses
  • Lower your IRS reported income which saves you money

Want to find out if you’re eligible or need more info? Get in touch with one of our benefits experts by clicking the button below and completing the form.

FREQUENTLY ASKED QUESTIONS

A Dependent Care Account (DCA) allows you to use tax-free dollars to pay for child day care or elder care expenses that you incur because you and your spouse are both gainfully employed. Click here to learn more about DCAs, how they work, and what expenses are eligible.

You can use the Dependent Care Account for expenses incurred for:

  • Your qualifying child who is age twelve or younger for whom you claim a dependency exemption on your income tax return.
  • Your qualifying relative (e.g. a child over age twelve, your parent, a spouse’s parent) who is physically or mentally incapable of caring for himself or herself and has the same principal place of residency as you for more than half of the year
  • Your spouse who is physically or mentally incapable of caring for himself or herself and has the same principal place of residency as you for more than half of the year.

Please check with either your employer or ProService Hawaii if you are eligible for this benefit.

Per IRS tax rules, the following are not eligible to participate:

  • S Corp shareholders above the 2% ownership level and immediate family members
  • LLC owners taxed as a Partnership
  • LLP members
  • Partners in a Partnership and Sole Proprietors; spouses/family members who are not W-2 employees of the company

The ProService Hawaii Voluntary Benefits Team can assist you with the steps in enrolling in this benefit. Please call us at 808-394-4175 or click here to submit an online request.

The expenses which are eligible for reimbursement must have been incurred during the plan year and in connection with you and your spouse to remain gainfully employed:

  • Before and After School and/or Extended Day Programs
  • Daycare in your home or elsewhere so long as the dependent regularly spends at least 8 hours a day in your home
  • Base cost of day camps or similar programs
  • Eldercare services – hiring a Caregiver to take care of your parent while you are at work

Examples of ineligible expenses:

  • Schooling for child in kindergarten or above
  • Babysitter while you go to the movies or out to eat
  • Cost of overnight camps

You can submit claims to National Benefit Services (NBS) in the following ways:

  • Online at my.nbsbenefits.com
  • Use the NBS Benefits mobile app for Apple and Android devices;
  • Submit an NBS Flexible Spending Account Claim Form with supporting documentation via email to service@nbsbenefits.com; fax to 844-438-1496 or mail to: National Benefit Services, LLC
    P.O. Box 6980
    West Jordan, UT 84084

The Dependent Care account can only be used as it is funded and is not eligible for rollover. Any balance left in the Dependent Care account after the plan year run out period will be forfeited. 

Changes can only be made within 30 days of a qualifying event and will take effect on the first of the following month. The IRS determines what is considered a qualifying event or qualified change of status.  Some examples of qualified changes are birth of child, death, divorce, or marriage.

Your participation and salary deduction ends. You will no longer be able to incur expenses for reimbursement as of your termination date. You have 90 days from the date of termination to submit claims for expenses incurred prior to the termination date. Any balance left in the account after 90 days will be considered forfeit. You may choose to continue this coverage under COBRA.

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For assistance with your voluntary benefits, please contact us between Monday – Friday, 8am – 5pm.