Accounting, Payroll & Pension Issues/healthcare spending accounts

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Expert: - 2/4/2009


Question
I am having pretax money held from my paycheck for my healthcare spending account. I found out today that my money has never been deposited to the account.  I asked my employer if I could quit having money withdrawn from my paycheck and they said it was an IRS program and they didn't think I could.  What can I do? Isn't there some law that states the company has to legally put my money where I instruct it to go?  It seems to me they are stealing my money and not putting it in my healthcare spending account.  Doesn't the IRS require them to actually put the money in the account if I instruct them to? I am not getting straight answers about this issue from the company handling my healthcare spending account.  Something seems pretty fishy.

Answer
Yes, your money needs to go into your account and it is supposed to go there 5 days after you pay it from your paycheck.

Once you sign up for an HSA you cannot stop until the year is up that you signed up for because that is how it is set up.

I would contact the IRS and let them know what is happening and I would also contact the Department of Labor as they have witheld wages and not paid them thus they are withholding wages and if your state has an insurance board I would contact them.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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