Dependent Day Care FSA

Mercury offers you the Dependent Care Flexible Spending Account (FSA) and encourages you to take full advantage of the money-saving potential by paying for qualified child and elder care expenses with tax-advantaged accounts. A Dependent Care FSA is available to all employees. You can contribute up to $5,000 for the year through pre-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.

You can enroll in the Dependent Care FSA in UKG as a new hire, during Open Enrollment, or if you have a qualifying life event. Note: You must enroll in Dependent Care FSA each Open Enrollment if you want to contribute the next year, even if you already participate.




  Key features at a glance
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  • Tax-free money. Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.
  • Convenient payroll deductions. Contribute to your accounts easily and effortlessly.
  • Helpful budgeting tool. Plan for upcoming expenses by setting aside money each paycheck.

*Contributions are not subject to federal tax. However, FSA contributions are subject to state tax in NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an FSA.


How the Dependent Care FSA works

Choose

Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes, so estimate carefully.

Contribute

Your annual contribution will be divided into equal deductions from each paycheck. You can only use money that has been deposited into your account.

Spend

Log in to PayFlex to request reimbursement for payments you’ve made.

Use It Up

With FSA money, you “use it or lose it.” Unused money does not carry over at the end of each year — use it or lose it!

Eligible dependents

An eligible dependent is a person who shares the same primary place of residence with you for more than six months each year and is:

  • Your child under age 13 whom you can claim as a dependent on your federal income tax return;
  • Your spouse who is mentally or physically disabled; or
  • Your dependent who is mentally or physically disabled and whom you can claim on your federal income tax return. In most cases, your domestic partner and children of your domestic partner are not considered eligible dependents for purposes of your Dependent Care FSA.

Eligible/Ineligible expenses

You can use your Dependent Care FSA for expenses you pay that allow you (or you and your spouse, if you’re married) to work, such as:

  • At-home child and elder day care
  • Before- or after-school care
  • Care at certain child and elder day care centers
  • Charges from certain child and elder day care providers
  • Pre-school and nursery schools
  • Summer day camp

Here are some examples of ineligible expenses:

  • Tuition
  • Child or elder day care provided by someone living in your home
  • Overnight camp

Reimbursements

To be reimbursed, you must save your receipts and submit a claim for any eligible expenses. Reimbursements are generally paid through direct deposit or check by a third party administrator. You do not pay federal, state income, or Social Security taxes on FSA expenses.