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I think it depends on who administers your FSA as far as how much of a hassle it is to get reimbursed. I submit quarterly online, attach a statement and call it a day.

I should clarify, the check I use is just off our normal checking account. From a cash flow perspective, I could submit bi weekly but we are fortunate to be in a position where I don't hassle with that.

Definitely worth whatever the hassle is. We just submit the invoice from daycare and I believe the bank statement (since it’s direct debit). My husband does it monthly.

I'm not savvy about that kind of thing, and it was super easy. I just downloaded monthly invoices from our daycare and then submitted them online. I got reimbursed twice a year. The only issue we had was our daycare provider got messy/disorganized with invoices for awhile, and it took extra work on my end to sort it out.

I paid with my own account and was reimbursed at every pay period. I only had to submit a form once a year, I don't remember it being a hassle. I did file all of our statements from daycare just in case.

Ours has a recurring dependent care reimbursal form that I fill out at the beginning of the year which states how much we pay weekly in childcare. The provider signs it, and then we file the claim once and upload the form. After that, every week, we get a direct deposit to our bank account with the weekly reimbursal amount.
I have never needed to have receipts or anything like that, and we use a home day care so if I needed something she would be happy to provide it to me but it's not standard practice for her (we pay by check at the start of each month).

@DesertDreams88: It is pretty easy to get reimbursed and it is worth it but you can screw up by missing the deadline. We did one year. I wasn't handling it but I assumed the deadline for reimbursement was tied to taxes and April 15th. It isn't. It was an expensive lesson to learn.

@PurplePeony: good idea!

We pay OPP and then submit for reimbursement. Never had any tax issues.

@gotkimchi: when I submit one month’s receipt from daycare, the amount over and above the balance in my DCFSA is “banked” for payment from future deductions. So, since I get paid biweekly, I have $192 and change withheld from each check. That amount then automatically gets deposited into my checking a couple days after each payday, so it basically just washes through. For us, the $5,000 max only covers a little more than 3 months of care, so if I submit receipts for January-April as soon as daycare gives them to us, it means I’m done sending anything in for the year and will just get auto-deposits after each paycheck. And there’s the added benefit of never missing the filing deadline. I hope I explained that clearly enough, let me know if it’s still muddled!

@PurplePeony: no that makes sense - so you’re saying they only send you what is in you’re acct at the time, it’s not like a few where I have access to my years worth of funds at the first of the year. Is that right?

Ours is super easy to use! We just pay out of pocket for daycare and then submit for reimbursement at the end of the year. There's a portal to submit documentation (just a statement from daycare) and then the money is in our account a few days later.

@gotkimchi: yes, healthcare and dependent care work differently. With healthcare FSAs, you get access to your entire election upfront and if you use it all and then leave mid-year, your employer eats the loss. With dependent care FSAs, you can only be reimbursed the actual amount you’ve had withheld so far that year. I’m pretty sure this is law and not something that varies between plan administrators.

My dependent care plan has a card that I use to pay the invoice online.

@gotkimchi: From what I understand it's dependent on how much you spend in childcare whether this or the tax credit is more beneficial.

I copied this from my plan benefit info:
When will I receive a greater tax benefit using the Dependent Care Spending account instead of the Dependent Care tax credit?

If your dependent care expenses are in excess of the tax credit’s dollar limits, you may be better off in a dependent care FSA. For example:

• An employee with one dependent who has over the $3,000 tax credit limit is better off with the dependent care FSA since the limit per family is $5,000.

• An employee with two dependents who has $5,000 or more in dependent care expenses is better off using the FSA first, then applying the remaining expenses to the tax credit limit (up to $6,000).

• Employees with little or no taxable income are better off in the dependent care FSA since it will allow them to still save on FICA taxes.

Hope that helps!

Our childcare FSA can be paid with the same credit card as my medical FSA.

We've been using it when cash gets tight. The last couple months, I log in to our daycare portal (where we have automatic payment linked to our bank card) and I'll make a payment with the FSA card. Since that week is paid for, they won't take an additional payment from our bankcard.

It's been handy when things like new tires and a broken heat pump pop up!

@gotkimchi: meh, I'd submit it. Worst case they'll deny it and you just resubmit after the services have been provided.