Bunsen

Thanks, since it crosses over the quarter and year-end it affects our employer quarterly tax returns as well as the employees W-2 and income tax filing for the year. I wish it were as easy as your first response. We'll seek out the advice of an expert in this area.

An employee, who was in our Dependent Care FSA plan that ended 6/30/2016, did not make an election for the plan year beginning 7/1/2016. The deduction was not removed from payroll and continued to be deducted from the employees pay. This administrative error did not come to our attention until calendar year 2016 was over. What is the proper procedure to correct this error including filing corrected returns?