Yes. All eligible employees and students must apply each fiscal year to receive subsidized sick and backup childcare services.

No. Eligible University of Arizona employees do not have to pay a membership fee to receive subsidized sick and backup childcare. However, program participants may be responsible for paying the nonsubsidized hourly rate in some circumstances. Refer to the Program Guidelines above for details.

Yes. Registration in the Sick and Back-Up Childcare Program is a two-step process: University registration and vendor registration.

Yes. In the case of two eligible parents – a pair of employees, a pair of students, or an employee-student pair – each may register for the service using their NetID and password.

Dependent Care and Tax Liability Issues - Employees

The Internal Revenue Service has determined that employees may allocate up to $5,000 per year in a dependent care assistance account established by their employer. This $5,000 allocation includes the combined monies applied to the following UA-sponsored pre-tax programs:

• Flexible Spending Account (FSA)* for dependent (child and/or elder) care only (excludes medical expenses)
• UA Childcare Choice Employee Reimbursement Program for Qualified Childcare Expenses
• Employee Sick and Back-Up Childcare (includes the entire value of the program -employee and employer costs)

*You may designate an amount of pre-tax salary to be placed in a dependent care-related and/or medical expenses-related FSA. These tax-free dollars may then be used to reimburse you for qualified out-of-pocket medical care and/or dependent care (childcare/elder care) expenses. You reduce your taxable income, as no Social Security, federal, or state income taxes are taken from the designated dollars and this amount is excluded from your taxable income.

Please note that dependent care expenditures that exceed the $5,000 limit may be subject to income tax. The annual FSA figures (total costs) will appear on your Form W-2 Wage and Tax Statement. This information is not intended to serve as tax advice. Please consult your professional tax advisor to identify the full tax implications of program use and to determine the optimal use of dependent care offerings. For information about the status of your FSA or qualified deductions, contact ASI at http://www.asiflex.com or at (800) 659-3035.

Dependent are and Tax Liability Issues - Students

Childcare can be a major expense for many students. Please contact a professional tax advisor to determine if you are eligible for a tax credit. Additionally, subsidized monies applied toward childcare can be considered “scholarship” income and may be subject to taxation. This information is not intended to serve as tax advice. Please consult your professional tax advisor to identify the full tax implications of program use and to determine the optimal use of dependent care offerings.