FSA/DCA OPTIONS FOR FMLA

[Guest PTD]

COULD SOMEONE PLEASE INFORM ME OF AN EMPLOYEES OPTIONS FOR THE FSA & DCA ACCOUNTS WHEN GOING ON AND RETURNING FROM FMLA?

[Guest ehs]

We apply the following:

If an employee is enrolled in a Medical Reimbursement Account and would like the Account to stay “ACTIVE” during the leave, they may elect one of the following two (2) payment options:

1.) Continue coverage by “Paying Up-Front” with either pre-tax or after-tax dollars.

2.) Continue coverage by “Paying As-You-Go” with after-tax dollars on a monthly basis.

Return from a Leave of Absence

If an employee was enrolled in a Medical Reimbursement Account and did not choose option 1 or 2, the employee is not entitled to receive reimbursements for claims incurred during the period when the account was “INACTIVE”. Upon return from a leave of absence an employee may:

1.) Resume coverage at the level in effect before the leave of absence and making up the unpaid premium payment (reimbursements are not permitted for claims incurred during the period when the account was “INACTIVE”) or

2.) Resume coverage at a level that is reduced; the coverage is pro-rated for the period during the leave for which no premiums were paid.

For child care, there really is no make up option, because child care expenses while on leave would not be employment related.

[Guest PTD]

Yes, but does the employee also have the option to stop, decrease, or increase their FSA/DCA accounts?

[LRDG]

One exception to the 'employment related' DC expense restriction worth researching is an exception for a parent requiring DC services due to illness/disability in order for the working spouse/parent to maintain employment. The exception may also apply to an employee who is a single parent.