The ACCESS child care scholarship operates as a reimbursement program designed to support eligible employees with their child care expenses. It’s important to understand that this is a reimbursement system, meaning you will be paid back for costs you’ve already incurred. The reimbursement amount will not exceed your total award or your actual expenses, whichever is lower.
After you have paid for your day care services, you can claim reimbursement for these expenses by submitting an online claim form. Once your claim is processed and approved, the funds will be added to your regular paycheck. These reimbursements are typically included in your paycheck according to a predefined schedule. For claim submissions made by the specified deadlines, reimbursements are generally processed and added to paychecks up to four times per year. Specifically, keep an eye out for reimbursements in your October, December, March, and June paychecks. If you happen to miss a submission deadline, don’t worry; your reimbursement will simply be included in the next scheduled paycheck.
To submit your claim for day care expenses, you’ll need to log in to PeopleSoft using your HarvardKey. Once logged in, navigate to the “My Benefits” tile. From the left-hand side menu, select “Child Care Scholarship” and then click on “Claim Form”. You will then be prompted to fill in the required fields, detailing each expense. If you have multiple expenses to claim, 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 expenses and the dates of care provided. These documents are essential for processing your reimbursement claim.
It’s important to be aware that program reimbursement payments are considered additional compensation. As such, these payments are subject to taxes. This addition to your regular wages will be taxed at a supplemental rate, which means a higher percentage will be withheld for federal income taxes, FICA and FICA-HI, and state income taxes. The ACCESS awards are not “grossed-up” to cover these tax withholdings. To help you understand the net amount you might receive, consider these examples:
Example 1: If your ACCESS award is $10,000 and you submit a claim for $11,000 by the final deadline, and it’s approved, you will receive a reimbursement payment of $10,000. After supplemental tax withholding, the net amount added to your paycheck will be approximately $6,000.
Example 2: If your award is $10,000 and you claim $7,500 in expenses by the deadline, the approved reimbursement will be $7,500. The net amount in your paycheck, after taxes, will be roughly $4,500. Note that you will forfeit the remaining $2,500 of your award in this scenario.
Example 3: Suppose you have a $10,000 award and submit a claim for $5,000 by the first deadline. After approval, you’ll receive $5,000, and the net amount in your paycheck, after tax deductions, will be around $3,000. 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 participating in the Access Day Care Program. The earnings you see reflect the gross amount awarded and paid, while the net amount is what you actually receive after legally required tax withholdings. For any further questions or more detailed information, you can contact Mary Christakis, Director, Finance, Administration and Programs, at 617-495-2785.
