To much or not enough withholdings for benefits elected

[Guest Joe Vasko]

How do you handle a situation when an employer either withholds to much or not enough from an employees annual pay (for health or dependent care FSA) with respect to what the employee actually elected?

If the employer withheld to much from an employees pay, would you issue a 1099-R for the prior year or include it in the employees current year pay. What do you do if the employer did not withhold enough of their pay in the prior year?

Thanks,

Joe