Dependent Care Assistance Programs: Ineligible Expenses

The following payments made for dependent care are not reimbursable under a Dependent Care Assistance Program (DCAP) offered through a Cafeteria Plan:

• Payments made to an individual of any age who is a dependent of the employee
• Payments made to a child of the employee who is not a dependent of the employee, but who is under the age of 19 as of the end of the calendar year
• Household services rendered while providing care such as painting the living room in the course of providing day care services for the employee's child
• Tuition for kindergarten and up (because such tuition is considered an educational expense, not a dependent care expense)
• Cost of overnight camps
• Babysitting for social events

An employee also may not use DCAP funds to pay for any other benefit, including an HFSA, life insurance, group health care premiums, individual healthcare policies, or disability insurance. For an HR Generalist, ensuring these exclusions are communicated clearly is a vital part of human resources compliance. All payroll deductions must align with labor law and FLSA guidelines, while maintaining HIPAA privacy standards for participant data.