How does it work?

A Day Care FSA allows employees to set aside pre-tax dollars out of their paychecks to pay for eligible day care or dependent care expenses. Funds put into the plan avoid both Federal Income Tax and FICA, creating a tax savings for both the participant and the employer!

Employees determine an annual election amount to set aside into their Day Care FSA. This annual election amount will be deducted evenly out of each pay check on a pre-tax basis and put into the Flexible Spending Arrangement (FSA). Participants then use the pre-tax dollars in their FSA to pay for day care or dependent care eligible expenses.

What expenses are eligible?

In order for an expense to be eligible, there are a few rules that must apply:

  • The expense must enable you and your spouse to work, actively look for work, or be a full time student.
  • Your dependent must live with you and be 12 years old or younger. A dependent age 13 or older may be eligible if they cannot physically or mentally care for themselves.
  • The service provider cannot be a parent of the child, a dependent on your tax return, or your child under the age of 19.

Assuming the expense meets the above requirements, eligible expenses include, but are not limited to:

  • Before and After School Care
  • Day Care
  • Preschool
  • Day Camps
  • Elder Care

For a more extensive list of eligible items, check out our Eligible Expense List

Participant Features

Your employees will have access to the top tools and resources available without any additional costs. The services listed below are included for your participants as part of our standard administration.

  • The Navia Benefits Debit Card
  • The MyNavia Mobile App
  • Mobile Pay
  • Online Account Access
  • Online Claim Submission
  • Recurring Claims Processing
  • Direct Deposit

Employer Features

As our Client, we’ll provide you with the best features available in the industry at no additional cost to you or your employees. The services listed below are included as part of our standard plan administration.

  • Customized Enrollment Materials
  • Online Enrollment
  • Online Account Access and Eligibility reporting
  • Dedicated Account Team
  • 2 ½ Month Grace Period Administration
  • Custom Reimbursement Cycle
  • Integration with Payroll and HRIS systems
  • Plan Document & SPD Preparation
  • Secure File Uploads
  • Annual Non-discrimination Testing and Form 5500 Preparation
  • Compliance Support Services

Features Highlight - Recurring Claims

The Recurring Claims Tool creates a quick and easy submission process for Day Care FSA participants with qualified recurring claims. If a participant has qualified expenses with a fixed weekly or monthly cost, they might be able to submit one claim for a year’s worth of expenses!

Interested in learning more?

Contact our sales team at 425.452.3498 or