Leave of absence

[Guest Joe Vasko]

Is a leave of absence a "change in status"? What happens if an employee takes a leave of absence, but never returns? Do pre-tax contributions, say for unreimbursed medical, cease at the time he/she leaves?

I've had employees take a leave of absence, but pre-pay their contributions until they return. I've never had the situation where an employee takes a leave of absence, but never returns to work.

Joe

[Guest Miss D]

If an employee is taking a leave of absence that would qualify under FMLA, usually the employee would've been required to pay the medical on a monthly basis by check. If the employee never submitted any premiums for the coverage you should terminate the health coverage as of the last period the employee had paid for. If the employee utilized the coverage while on leave any claims that were incurred would be denied as long as you terminated coverage retro-active.