The ACCESS child care scholarship operates as a reimbursement program, meaning you will receive funds back for your childcare expenses. The reimbursement will be capped at your awarded amount, or your total out-of-pocket childcare costs if they are less than your award. It’s important to understand this upfront: the program is designed to help offset costs you’ve already incurred.
Once you have paid for your child care services, you can then submit an online claim form to get reimbursed for these expenses. After submitting your claim, the funds will be added to your regular paycheck. These reimbursements are processed according to a set schedule. For the most up-to-date schedule, please refer to point #15 in the ACCESS FAQ: Rules and Eligibility Guidelines. Typically, reimbursements are included in paychecks approximately four times a year, assuming you meet the claim submission deadlines.
These paychecks are usually scheduled around October, December, March, and June. If you happen to miss a submission deadline, don’t worry. Your reimbursement will simply be processed in the next scheduled payment cycle, ensuring you still receive the funds you are entitled to.
To submit your claim for child care expenses, you will need to log in to PeopleSoft using your HarvardKey. Once logged in, navigate to the “My Benefits” tile on the homepage. From the left-hand side menu, select “Child Care Scholarship,” and then click on “Claim Form.” This will take you to the form where you can detail your expenses. You will need to fill in all the required fields, providing a breakdown of each expense. If you have multiple expenses, simply scroll to the bottom of the form to add new blank rows as needed. Crucially, you must upload receipts, statements, or other official documents that verify your childcare expenses and the dates of care. Without proper documentation, your claim cannot be processed.
It’s also vital to be aware that program reimbursement payments are considered additional compensation. This means that the reimbursement added to your regular wages will be subject to taxes, and these are taxed at a supplemental rate, which is generally higher than your usual income tax rate. This supplemental withholding covers federal income taxes, FICA and FICA-HI (Social Security and Medicare taxes), and Massachusetts state income taxes.
These ACCESS awards are not “grossed-up” to cover these tax implications. To help you plan and understand the actual amount you will receive, consider these examples:
Example 1: Let’s say your ACCESS award is $10,000, and you submit a claim for $11,000 by the final deadline. After approval, a payment of $10,000 (your award maximum) is sent to payroll. After the required supplemental tax withholding, the net amount you receive in your paycheck will be approximately $6,000.
Example 2: If your award is $10,000, but you only submit a claim for $7,500 by the deadline. Following approval, a payment of $7,500 is processed. After supplemental tax withholding, you will receive roughly $4,500 net in your paycheck. Importantly, in this scenario, you forfeit the remaining $2,500 of your award because you did not claim the full amount.
Example 3: Imagine your award is $10,000, and you submit a claim for $5,000 by the first deadline. A payment of $5,000 is approved and processed, resulting in approximately $3,000 net in your paycheck after taxes. If you do not submit any further claims, you will forfeit the remaining $5,000 of your award.
Understanding the impact of supplemental tax withholding is key for financial planning when using the ACCESS program. The gross amount reflects the initial award and payment, while the net amount is what you actually receive after legally required taxes are deducted. For more detailed information or if you have any questions, please contact Mary Christakis, Director, Finance, Administration and Programs, at 617-495-2785. She can provide further clarification and assistance.
