WHAT IS CHANGING IN 2024?

NEW! Child Care Subsidy
Beginning January 1, 2024 Dartmouth is pleased to expand support to eligible employees and their families with a new Child Care Subsidy. 

If you are a Research Associate B or Research Fellow, please click here for detailed information about your child care subsidy benefit.

WHAT IS THE CHILD CARE SUBSIDY?

Dartmouth will provide a contribution of up to $4,000 for eligible employees with legal dependents (up to age 6) to help offset eligible pre-K child care expenses, such as licensed day care centers, when you elect the Dependent Care Flexible Spending Account (DCFSA) with Child Care Subsidy.

IMPORTANT NOTE:  If you wish to receive this benefit in 2024, you MUST elect the DCFSA with Child Care Subsidy during the Open Enrollment period (October 23 - November 6), or as a new hire.  If you do not elect it during this time, you will not have another opportunity to elect the DCFSA with Child Care Subsidy unless you have an IRS defined status change like a birth or adoption life event in 2024.

Understanding the Benefits

Flexible Spending Accounts are strictly regulated by the IRS.  It is your responsibility to read and understand the information provided.  For clarification about information on this webpage, please reach out to the Dartmouth Benefits Office. If you have specific questions around these IRS rules and regulations surrounding your DCFSA plan, you are advised to speak to your tax professional.

For more in-depth information about your plans and how they work, please read the information provided below.

IRS Guidelines

• All Dartmouth contributions for the Child Care Subsidy benefit will be deposited into a Dependent Care Flexible Spending Account (DCFSA) at Sentinel Benefits in your name.  All IRS regulations/guidelines surrounding DCFSA contributions will also apply to the child care subsidy contributions that you will receive.
• Please make sure that you review the IRS guidelines for the DCFSA plan carefully.
• For additional details on the IRS guidelines for these benefits, please visit the IRS Publication 503. 

Subsidy Amount

The Subsidy is based on your Dartmouth annual salary level determined during Open Enrollment or as a new hire:

Eligibility

• Regular, benefits-eligible employees (excluding Research Associate Bs and Research Fellows - Click here for more information for this group)
• Legal parent or guardian of a child age birth through five years (up to the child’s sixth birthday)
• You must be eligible for a DCFSA according to IRS guidelines.

Enrollment Process

• During Open Enrollment, or a new hire, you must elect the DCFSA with Child Care Subsidy.
• If you do not elect the DCFSA with Child Care Subsidy during Open Enrollment or as a new hire, you will not be able to receive the Subsidy, or contribute to a DCFSA for the calendar year, unless you experience an IRS defined status change.
• You must add your eligible dependent into FlexOnline when you enroll, if they are not already listed in the Family Info section, to receive the Child Care Subsidy.
• Sentinel administers this benefit. You will receive a Sentinel debit card to pay for qualifying DCFSA expenses; claims can either be submitted online through Sentinel’s portal or through the phone app.
• All DCFSA funds, including the Child Care Subsidy, must be spent within the same calendar year in which they are contributed. Claims must be submitted by March 31 of the following calendar year. Any remaining Subsidy benefits are forfeited.

How does the DCFSA with Child Care Subsidy work? 

You will receive a debit card from Sentinel Benefits.  A pre-determined amount (e.g., your subsidy plus any contributions you make) will load onto your Sentinel debit card each pay period, which you can then use to pay for eligible dependent care expenses such as day care centers. You will be required to upload a photo of your receipt through the Sentinel online or phone app. For more detailed information, please review the How a DCFSA works section of our DCFSA website.

Manual Submission:  If you do not use the Sentinel debit card, you may pay the provider out-of-pocket and then submit a claim through the Sentinel online portal or phone app by creating a claim and uploading a photo of your receipt.  

Sentinel will then mail you a check or direct deposit the reimbursement into your bank account.

Sentinel Benefits Contact Information
888-762-6088
https://www.sentinelgroup.com/
Sentinel Help Center
781-213-7301 (claims)

FAQs

No, only one household is eligible for the subsidy. If your Dartmouth spouse is eligible for a greater amount of subsidy, you may choose to waive the DCFSA with Child Care Subsidy.  Your spouse will then need to elect the benefit during new hire or open enrollment.

Is the subsidy per household or per child?

One subsidy is provided per household, regardless of the number of eligible children. 

If I waive medical coverage, can I still receive the subsidy?

Yes, as long as you're eligible for the subsidy, you may elect the DCFSA with Child Care Subsidy and waive your medical coverage. 

What happens if my child turns six mid-year?

You will receive your subsidy through the end of the month your child turn 6. 

Does my residence affect my eligibility? 

You need to reside and file taxes in the United States. 

What if my spouse stays home to take care of our child, but we still pay for pre-school costs, am I eligible to receive the subsidy?

No, IRS guidelines state that you are not eligible for a DCFSA when your spouse is not working, therefore you would not be eligible for the DCFSA with Child Care Subsidy.

If I am currently pregnant, or recently had a baby and am still on leave, can I receive the subsidy?

The IRS does not allow a DCFSA contribution before your baby is born or while you are on leave, therefore you will not qualify for the subsidy until your baby has been born AND you return to work. 

Is the subsidy pro-rated based on start date/return-to-work date?

Yes, the subsidy is pro-rated based on start date/return to work date, and is provided on a per pay period basis. 

What happens to my subsidy if I leave Dartmouth?

When leaving Dartmouth, or when losing benefit eligibility, the subsidy will stop on the last day of the month in which you work.  Since benefits are paid in advance, you will NOT receive a contribution in your last paycheck of earned wages.  Please visit our LEAVING DARTMOUTH webpage for more information about what you can expect with this and all benefits as you lose eligibility for Dartmouth Benefits.

What happens if I don't use my full subsidy?

All DCFSA funds, including the Child Care Subsidy, must be spent within the same calendar year in which they are contributed. Claims must be submitted by March 31 of the following calendar year. Any remaining Subsidy benefits are forfeited.

If I receive the subsidy, can I still make a contribution to my DCFSA?

Yes, if you receive a subsidy from Dartmouth, you can elect to make an additional contribution to your DCFSA from your salary on a pre-tax basis, as long as the total of your subsidy plus your contribution does not exceed the annual maximum total of $5,000 per family ($2,500 if you're married and file taxes separately). If you also receive the subsidy for the Dartmouth College Child Care Center, please see questions below. 

Will I be taxed on the subsidy Dartmouth provides?

According to federal tax guidelines, Dartmouth is providing the subsidy via a DCFSA therefore it is a tax-free child care subsidy. Please note: if you also receive a subsidy for the Dartmouth College Child Care Center, see below question for further clarification).

Can I still receive the DCFSA with Child Care Subsidy if I also receive a subsidy for the Dartmouth College Child Care Center?

Yes, you can still receive the DCFSA with Child Care Subsidy. As a reminder, you are taxed on the full subsidy amount you receive for the Dartmouth College Child Care Center. 

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2024 Annual IRS Limit

Annual Limit per Household:  $5,000
Married Couples filing separate: $2,500

Please be sure to include all of the following as part of your annual household contribution.

• The amount of money that you and your family are contributing through Dartmouth's DCFSA plan
• The amount of Childcare subsidy that your family is receiving from Dartmouth.
• The amount of subsidy that your family is receiving from the Dartmouth College Child Care Center, if applicable.
• The amount of money that you contributed through a former employer during the calendar year.
• The amount of subsidy that your family received from a former employer during the calendar year.

Any amounts contributed above the IRS annual limit will be considered imputed taxable income.

Note: Non-discrimination testing is performed annually as regulated by the IRS. Some highly compensated employees may be required to reduce their annual limit once preliminary testing has been completed.

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Leaving Dartmouth

Child Care Subsidy - The subsidy will stop on the last day of the month in which you work.  Since benefits are paid in advance, you will NOT receive a contribution in your last pay check of earned wages

COBRA - Unlike the General-Purpose Health Care FSA, you may not continue your Dependent Care FSA under COBRA. Expenses incurred after the last day of coverage, will not be approved.

Runout Period (Deadline to Submit Claims) - You will still have the runout period through March 31st of the following year to submit your expenses manually through Sentinel.

Submitting for Reimbursement - The process does not change. You will continue to submit expenses to Sentinel using the claim form.

Claim Form - Use this form when submitting DCFSA claims.

For more information about COBRA benefits, and what to expect when leaving Dartmouth or losing benefit eligibility, please visit our Leaving Dartmouth webpage.

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Research Associate B & Research Fellow Benefits

In 2024, Dartmouth will be providing a Child Care Subsidy to help offset eligible pre-K child care expenses, such as licensed day care centers. You may be eligible for a payment of up to $4,000 which will be paid in equal installments on June 1 and December 1 so long as you meet the eligibility criteria.

Employee Eligibility:

• Be a regular, benefits-eligible Research Associate B or Research Fellow
• Be the legal parent or guardian of a child age birth up to age six on or after January 1, 2024.  The child is your legal dependent as defined by IRS regulations and for whom you are entitled for a personal tax exemption.
• Have childcare expenses equal to or greater than the amount of benefit that you, as the employee, are eligible for.

Subsidy Guidelines:

• There are four levels of subsidy provided, as outlined below. Levels are based on your Dartmouth annual salary level as of 1/1/24 as determined during annual Open Enrollment.
• There is a limit of one single benefit per family regardless of the number of eligible children.
• If both parents work at Dartmouth and are eligible for a Dartmouth child care subsidy, only one parent can receive the child care subsidy.
• The subsidy payment will be paid in two equal installments on June 1 and December 1 and is considered a taxable payment.  Employees will pay applicable taxes on the payment at the time it is issued in their paycheck.

Process:

• You must complete the Application for Child Care Subsidy Payment Form For Research Associate B/Research Fellows  and return it to the Human Resources Benefits Office (Human.Resources.Benefits@dartmouth.edu).
• The subsidy will be provided to you in two equal installments.
• To receive both payments, the form must be received by April 1, 2024.
• If you leave Dartmouth before either of the payment dates, you will not be eligible to receive the scheduled payment.
• For employees who gain an eligible dependent or who are hired on or after April 1, 2024, the payment will only include the second installment (50% of the allotted benefit).  To receive the December 1, 2024 payment (for those who become eligible on or after April 1, 2024), the form must be received by October 1, 2024. If you become eligible on or after October 1, 2024, you will not be eligible for the benefit in 2024.
• Please note: This process is only applicable in 2024 for Research Associate Bs. As previously communicated, Dartmouth is expecting to bring the benefits for Research Associate Bs into closer alignment with those for other employees starting in calendar year 2025 (i.e., starting 1/1/25), including eligibility for Dependent Care Flexible Spending Accounts and the associated child care subsidy. This process will continue for Research Fellows in 2025.