Jump to content

Flex Spending - Termination of Employment


Recommended Posts

I live in Texas and need assistance. I separated from my employer in April 2018. I had outstanding, non-verified receipts from Wageworks. My employer has withheld my last paycheck because I have not verified these FSA transactions. Are they able to do this?

Link to comment
Share on other sites

Would you please clarify what you mean by "outstanding, non-verified receipts from Wageworks"?  I have no idea what that means.

Other than that, most states have strict rules about paying wages on time.  I am sure that Texas is no exception.  Below is a link to the Texas statutes.  I would look in particular at section 61.014:

Sec. 61.014. PAYMENT AFTER TERMINATION OF EMPLOYMENT. (a) An employer shall pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged.

(b) An employer shall pay in full an employee who leaves employment other than by discharge not later than the next regularly scheduled payday.

http://www.statutes.legis.state.tx.us/SOTWDocs/LA/htm/LA.61.htm

You may wish to lodge a complaint with the relevant government agency. 

Link to comment
Share on other sites

Sorry.  I see now that you have not provided invoices for expenses submitted to your flexible spending account.  Those reimbursements should come from your account with Wageworks, not your employer.  From my perspective, I can't understand why your employer would hold up your final wage payment for this.

Submit your invoices as soon as possible for reimbursement and follow up with your former employer and/or the state agency that monitors wage payments.  Two separate actions. 

Link to comment
Share on other sites

It's possible that the FSA claims amount to more than has been withheld from paychecks so far. If that's the case, the employer needs to withhold enough from the final paycheck to forward to Wageworks who then will forward it to the employee.

Link to comment
Share on other sites

23 hours ago, digger said:

It's possible that the FSA claims amount to more than has been withheld from paychecks so far. If that's the case, the employer needs to withhold enough from the final paycheck to forward to Wageworks who then will forward it to the employee.

That is not how an FSA works.

The employee enrolls for a fixed amount per pay period. The total amount for the year is fully available for reimbursement on the first day of the year.

If the OP has valid reimbursements that exceed their contributions to date, the reimbursements must be paid and the employer is prohibited from seeking any repayment from the employee.

This works both ways. If the employee has contributed more than than submitted qualified expenses. Any balance remaining after separation is forfeited.

Link to comment
Share on other sites

Note that depending on a number of things, including whether you have contributed more to your FSA account than you have received in reimbursements, you may be entitled to continue your FSA through COBRA until at least the end of the year.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...