• @Work Advice: The Company Messed Up. Should the Worker Repay It?
  • May 23, 2017 | Author: Antoinette M. Pilzner
  • Law Firm: McDonald Hopkins LLC - Bloomfield Hills Office
  • Reader: I just discovered that my employer failed to deduct my 2016 flexible spending account contributions from my paycheck. The employer had enrolled me, so I was still able to use the contributions (totaling $6,500 for the year) for medical and dependent-care expenses. Now - unsurprisingly - they have asked me to pay back the $6,500. I understand this is partially my fault for not following up, but I also don’t have that kind of cash lying around. Does my employer have any liability in this situation?

    Karla: This is why it’s important for employees who open or renew an FSA to review their pay stubs at the start of the year - and for employers to remind them to do so. In the weeks between benefits enrollment season and the start of a plan year, it’s easy to lose track of deductions, especially in a paperless, direct-deposit payroll system.

    Okay, lecture over. Mistakes were made. What you want to know is, who has to eat the cost?