What the Plan Covers
The Child Care Benefit Plan runs each year from January 1 to December 31. You are entitled to reimbursement of eligible child care expenses for each eligible child under age 7 (however, the age limit does not apply if the child was mentally or physically infirm and dependent on you as outlined under the Income Tax Act) – natural, step, common-law, adopted or ward – up to a maximum of $2,000 per child per year. This is a taxable benefit. For information on eligible caregivers, please visit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/214/menu-eng.html.
Amount of Reimbursement
Your eligible child care expenses will be reimbursed at 50% up to $20 for a full day (defined as six hours or more of care) and $10 for a half day (defined as four to six hours of care) per eligible child. The annual maximum reimbursement per plan year is $2,000 for each child. In the event that the annual pooled value is not used in any year, the maximum amount available for reimbursement per child will be increased to spend the entire capped fund. If the total eligible claims exceed the annual maximum pooled amount, your claim will be prorated.
If you work less than full-time or work less than the full year, your maximum reimbursement will be prorated. For example, if you are hired on July 1, your maximum reimbursement for that year is prorated to $1,000.
The annual maximum pooled value is $1,000,000 per year. The maximum amount available for reimbursement per child will be adjusted to spend the entire capped fund each year.
Claims must be submitted by the application deadline March 15, 2019 using the Child Care Benefit Plan online Application Form. You must submit a separate application for each eligible child and for each child care provider. Late applications will not be accepted; note you should keep receipts of child care expenses for each eligible child as we will be conducting a random audit of claims paid and will require additional supporting documentation from you if you are selected for audit.
After all claims have been submitted and processed, you will receive a payment for the eligible care expenses, usually deposited with your April pay. This reimbursement is a T4 Taxable Benefit and is subject to legislative deductions, including income tax, Canada Pension Plan and Employment Insurance.