Dependent Care Flexible Spending Account



   Overview for: 

Dependent Care Spending Account







Milwaukee County provides you with an opportunity to pay for your dependent care costs on a pre-tax basis and you also have freedom of choosing your own daycare.

  • Taking advantage of federal tax laws, the County will deduct on a pre-tax basis any amount you choose consistent with the current federal dollar limitations for dependent care costs.

  • You do not have to pay State or federal income taxes or social security tax on this money.

  • The tax savings can be applied to your dependent care costs:

  • The net result is that you can reduce your dependent care costs by 25% to 30% in the course of a year. 

  • The Internal Revenue Service Tax Codes define what constitutes a dependent.

  • In certain circumstances a dependent can include an elderly parent who needs day care.


 You should consult your tax adviser if:

There is any question in your mind of the dependency status of your children and/or parents regarding this benefit.





If you have questions about your flexible spending account:

 Contact EBC; The County's Third Party Administrator at: 1-800-346-2126


To Enroll: Make your selection online on


Special rules apply to certain circumstances where non-custodial parents are entitled to claim the individual as a dependent.




 Eligibility and Enrollment:


Milwaukee County employees with an assigned work week of 20 hours or more are eligible as long as they have:

  • A spouse or other tax dependent that is physically or mentally incapable of caring for him or herself
  • A dependent under the age of 13 whom you are entitled to claim as a dependent on your tax return


Enrollment is conducted during the annual 'Open Enrollment Period'.

  • Coverage is effective at the beginning of the plan year (calendar year) and is for the whole year.
  • New hires can enroll within thirty (30) days of their date of hire and annually thereafter.



 Change of Family Status:

  • If you participate in this program; you may be allowed to make a benefit change by completing a new election form for the rest of the period of coverage because of a "Change of Family Status".

According to the Internal Revenue Service:

  • The following events are situations that constitute a 'Change of Family (or Employment) Status:

    • Employee or Spouse taking an unpaid leave of absence;

    • Birth or Adoption of a Child;

    • Death of Spouse or Dependent;

    • Divorce or Legal Separation;

    • Marriage;

    • Employee or Spouse employment change from Part-time to Full-time or Full-time to Part-time Status; OR

    • Termination or Commencement of Spouse's Employment; 

If you experience a change of family (or employment) status:

  • You have 30 days from the status change to modify your election. 

The 30-day adjustment period for employees on maternity leave begins:

  • The first day they return to work.

The Department of Human Resources must receive notification of a status change as soon as possible:

  •  AND no later than the 5th of the month prior to the effective date of the change.



 Plan Year:


Once you have elected to participate:

  • The plan year BEGINS on your enrollment date (January 1, except for new hires) and ENDS on Dec. 31;

    • You CANNOT modify your choices once they are made except for a Change of Family

All deductions for dependent care are use or lose:

  • If you do not make use of the amount deducted:

  • The income is forfeited to the plan.

 Low Pay/No Pay Situation:

  • If your deductions exceed earnings, the difference over your earnings will go into arrears.

  • Payments for an arrears balance are then paid/deducted with after tax earnings.

 Deduction Cycle:

  • There will be two deductions in the first two available paychecks during each month of participation.

 Reimbursement Procedure:


Once you receive a bll or pay a daycare:

  • Submit the verification of payment ( e.g. statement, receipt, bill ) as affidavits of services rendered:

  • And you also need to submit using an EBC Claim Form or other methods from the step-by-step instructions.


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