April 25, 2008
To: Faculty Members and Librarians
From: Steve Dyce, Director- Benefits, Pensions and HR Reporting
Re: University of Toronto Faculty and Librarian Child Care Benefit Plan
I am writing to provide you with information regarding the new child-care benefit plan available to Faculty members and Librarians arising from the recent salary and benefit agreement between the University and UTFA found at: http://www.hrandequity.utoronto.ca/Assets/policy/acad/mosutfa.pdf
Highlights of the plan:
Eligibility: You are entitled to reimbursement of eligible child care expenses for each eligible child under the age of seven. Child includes a natural, step, common-law or adopted child or ward under the age of seven. Eligibility requirements for caregivers can be found at www.cra-arc.gc.ca/E/pub/tp/it495r3/README.html
Plan Year: The Plan year runs from January 1- December 31 each year, beginning January 1, 2008.
Reimbursement: Eligible child care expenses will be reimbursed at 50%, up to $20/full day (6 hours or more of care) and $10 / half day (4-6 hours care) per eligible child, up to a potential maximum reimbursement of $2000 per child per Plan year (subject to the overall plan maximum). The maximum amount will be pro-rated if you work less than full-time, or less than the full year. For example, if you are hired on July 1, the maximum reimbursement is pro-rated to $1,000 for that year.
Plan Maximum: The Plan has an overall maximum reimbursement of $1 million per year, so that if the total claims submitted exceed this amount, each claim will be pro-rated accordingly so that the total amount paid for all eligible claims does not exceed $1M. If total claims are less than $1M, then the remaining amount will be carried forward to the next Plan year.
Applying for reimbursement: Effective January 1, 2008, faculty members and librarians should retain receipts and track child care expenses for each eligible child. Claims must be submitted between January 1 and February 28 following the end of the Plan year (i.e. between Jan 1, 2009 and Feb 28, 2009 for 200 Plan year), using the Faculty/Librarian Child Care Benefit Plan Application Form. Note that late claims will not be accepted, more information is available in our Question & Answer document
A separate application is required for each child and for each child care provider.
You require a signature from your child care provider confirming the days, hours of care being claimed, and daily rate.
Receiving Reimbursement: After all claims have been received and processed by the University, you will receive a payment for the eligible care expenses, usually deposited with your April pay deposit. This reimbursement is considered a T4 Taxable Benefit, and is subject to legislative deductions including income tax, Canada Pension Plan and Employment Insurance.
If you have any questions, please contact the Benefits section of the Human Resources Department at 416-978-2015 or benefits.help@utoronto.ca for assistance. You can also access this information by visiting the Human Resources and Equity website located at: (http://www.hrandequity.utoronto.ca/groups/faclib.htm)