The Loyola University Maryland child care voucher program is available to benefits-eligible employees (full-time, core, and half time) and faculty (full-time and four-fifths-time) who have child care costs directly related to the employee’s work schedule. Additionally, the employee’s spouse (if applicable) must be employed, looking for work, enrolled in school full-time, or have a documented disability that prevents full-time parenting. Newly hired employees can begin participation the month following (after) their date of hire.
The application process outlined below in the Child Care Voucher Program Guidelines. A new application must be submitted for each benefit year. If employees change child care providers, a new application must be submitted. The monthly reimbursement process is outlined below in the Child Care Voucher Program Guidelines. In the case of two Loyola employee parents, voucher monies will be awarded to one employee parent on behalf of the family.
The Internal Revenue Service determines the maximum allowance for dependent care assistance programs sponsored by employers. The American Rescue Plan Act of 2021 (ARPA) increased the dependent care assistance limit for calendar year (not benefit plan year) 2021 to $10,500, per family and includes:
• The Dependent Care Flexible Spending Account (FSA) benefit, and
• The Child Care Voucher Program.
If you participate in both the Dependent Care FSA and the Child Care Voucher Program, coordinate your Dependent Care FSA annual election with your total calendar year anticipated Child Care Voucher reimbursement amount to ensure you do not exceed the $10,500 calendar year maximum allowance. If the combined total of the Dependent Care FSA annual election and Child Care Voucher reimbursements for the calendar year reaches the $10,500 maximum before the end of the year any additional Child Care Voucher reimbursements will be treated as taxable income. Generally, it is not permissible to reduce the Dependent Care FSA annual election in the middle of the plan year without a qualified change-in-status event. Coordination with Child Care Voucher reimbursements or a change in tax treatment are not qualified change-in-status events.
This information should not be understood to be tax advice. ARPA significantly increases the availability of dependent care tax credits. Please consult with a professional tax advisor to determine, under the revised rules, whether dependent care assistance programs or the dependent care tax credit make the most economic sense for your specific situation.