A reduction in hours or change in employment status allows for an election change (stop or reduce contribution) to Dependent Care FSA. Claims may be submitted for expenses through the end of the plan year based on the claim submission deadline, however employees may only be reimbursed for the amount paid in.
In order to reduce or terminate day care expenses, a letter would be required advising of the change in status. If this is a temporary situation, the dependent care account would not be terminated, but would be changed temporarily to zero. Once the child returns to daycare, contributions may be made.