It is a program offered by the Illinois Department of Central Management Services (CMS) and is comprised of two assistance plans - the Medical Care Assistance Plan (MCAP) and the Dependent Care Assistance Plan (DCAP). Through these plans, state employees can pay for out-of-pocket medical expenses and/or work-related dependent care expenses during the plan year with tax-free dollars.
The participant designates the amount to have deducted from their paycheck and deposited into their personal MCAP and/or DCAP account before Illinois, federal, or Social Security taxes are withheld. The amount deducted from the participant's paycheck is not reported on their W-2 as taxable income which results in reduced taxes and greater disposable income.
Once an enrollment form is received and processed by CMS, an FSA welcome packet is sent to the participant. The packet contains enrollment verification, personalized claims forms, and important participation information. Packets should be reviewed carefully.
(The above information was taken from a State of Illinois FSA publication.)
MCAP Key Points
DCAP Plan Information
More information is available on the Central Management Services web site under Optional Pre-Tax Programs.
