Benefits

Dependent Care Plan

The Dependent Care Plan lets you pay for eligible child or dependent care expenses with contributions taken from your pay before taxes. Since these contributions are not subject to Federal Income Tax, Social Security Tax (FICA) or State Income tax, you can, in most cases, receive more value for your money.

You may elect any amount of benefit up to a legal limit of $5,000 per year (married persons filing separate returns would be limited to $2,500). An enrollment choice must be made within 31 days of your date of employment, during the annual open enrollment period, or within 31 days of a dependent birth/adoption. For more details about the plan,
please read the Dependent Care Summary Plan Description.

• Are you a new employee? You must submit your 2008 Enrollment Form within 31 days from your date of full time employment.

The deadline to submit 2007 reimbursement claims is March 31, 2008. All claims are to be mailed directly to The EPOCH Group, L.C., P.O. Box 9030, Shawnee Mission, KS 66201, faxed to flex@epochgrp.com, or faxed to (913) 261-4166 with the Dependent Care Reimbursement Claim Form.

Eligible child and other dependent care expenses include charges made by:

• Nursery schools, preschool, day care centers, before and after school care and summer camps. The school or center must comply with state and local laws, serve seven or more children and receive a fee for its services. Summer camps are limited to day programs. Expenses for overnight camps or other expenses for educational purposes only cannot be reimbursed.
• Individuals (other than children under the age of 19 or dependents) who provide care in or outside your home. However, you may not use this plan if you are reimbursing someone who actually resides in your home.
• Dependent care centers that provide day care - not residential care - for dependent adults.
• Providers of household services related to the care of a dependent.
  

Flexible Spending and Dependent Care Plan Tax Advantages

The following example is based upon Tax Tables presented in IRS Publication 15 and the State of Missouri Employer's Tax Guide, both for calendar year 2001 (which will expire 12/31/2001). This is an illustrative example of possible tax savings that can be realized by employees participation in employer sponsored benefit programs. These are examples only and it must be realized that individual situations will vary and can present a different outcome.

Example

Janet has an annual income of $26,500.

Medical: University Primary Medical Plan-family coverage.
Dental: Not enrolled in any plan. Pays out of pocket. One child in Orthodontia.
Prescription drugs: her husband takes two monthly maintenance drugs.
Dependent Care Expenses: After school daycare programs.

Since all of the mentioned services or products have predictable expenses, Janet has decided to enroll in the University's Flexible Spending and Dependent Care plans.

Janet has decided to withhold $ 2,462 into her flex account. She reached that figure by calculating her predictable, anticipated expenses to:
$1200 on orthodontic ($100/month x 12 months)
$360 for her husband's 2 monthly prescriptions one generic-$10, one brand name-$20
$400 for preventative dental for the family
$500 for her family deductible under the University Primary Medical Plan ($250 x 2 people)
$150 for eyeglasses for herself
$120 for contact lenses for her husband

Janet has also decided to withhold $1000 into her dependent care account after calculating her annual expense for the after-school daycare for two children.

Her net taxable income after deductions (medical, parking, 403b) is approximately 20,000, and she is married filing a joint tax return, claiming two deductions. This is the breakdown of how participation in these plans will benefit Janet and her family:

Individual claiming Married Status with 2 allowances on both W-4 and MO W-4 Forms.

Gross Wages	20,000	20,000
Flexible Spending Deduction	(2,250)	0
Dependent Care Deduction	(1,000)	0
Taxable Wages (reported W-2)	16,750	20,000
Taxes (calculated on taxable wages above)
FICA-OASDI	1,039	1,240
FICA-Medicare	243	290
Federal Withholding	675	1,163
Missouri Withholding	108	504
St. Louis City Withholding	168	200
Annual Net Tax Withheld	2,233	3,397
Net Tax Savings Due to Pretax Deductions	1,164
Pretax Flexible Spending Deductions	2,250
Pretax Dependent Care Deductions	1,000
Combined Pretax Deductions for Year	3,250
Net Tax Savings Due to Pretax Deductions	(1,164)
Net Cost of Pretax Deductions	2,086