ER taking FSA reimbursment to pay off employee loan

[Guest andrew1234]

OK, i am pretty new to FSA's and have a question.

An EE has terminated mid year and has turned in a FSA reimbursment to be paid on their last check.

The EE still owes the ER for a negative PTO balance.

Can the ER withhold the reimbursed FSA amount to repay the negative PTO balance.

(In Maryland we can withhold earnings from an employees final pay to pay back PTO)

[J Simmons]

Nope. The PTO pay back would not qualify as a health expense, if it's a health flex account, nor a dependent care expense, if it's a day care flex account.

[QDROphile]

Food for thought: Whether or not the reimbursement is paid at the same time as compensation, it is not compensation; it is a medical benefit that the employer is committed to deliver in accordance with the terms of the plan.

[Guest andrew1234]

Food for thought: Whether or not the reimbursement is paid at the same time as compensation, it is not compensation; it is a medical benefit that the employer is committed to deliver in accordance with the terms of the plan.

Great, that what i was looking for, So since it is not compensation the ER can not touch it in reguards to the EE oweing the ER money for any reason not involving the FSA.