A DCA, works like an FSA, which allows you to have pre-taxed dollars taken out of your paycheck and use them to pay for eligible dependent's day care needs. It may also be used to help pay for the care of an elderly dependent, if they live with you, while you are at work.
Question: I participated with the FSA and/or DCA in 2011, should I expect to receive any type of tax document from you? For example, the 1099-SA form?
Answer: No, you will not receive any type of tax document through Polestar Benefits. Your FSA/DCA Tax Deductions are itemized on your W2. The 1099-SA form is specific for those participants that carry an HSA (Health Savings Account), Archer MSA (Medical Savings Account) or a Medicare MSA.
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But don't forget to notify the administrator when this happens. There are different ways that contributions on a FSA-DCA are handled, including what access to the election$$$ a member has. Check out what the US Department of Labor has to say on this topic!
1. If the cost charged for benefits increases, a change can be to:
- Make a corresponding increase
- Revoke the election
2. Change in Service Provider -
a. Terminating a provider and hiring a new provider, then a change is allowed to reflect the cost of the new provider
b. Terminating a provider because a relative becomes available to take care of the child at no charge, then an election can be cancelled