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About 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.

 
   

You are here:  Experts > People/Relationships > Retirement Planning > Accounting, Payroll & Pension Issues > Employer refuses to pay valid FlexSpend expenses

Accounting, Payroll & Pension Issues - Employer refuses to pay valid FlexSpend expenses


Expert: Shirley McAllister, CPP, PHR - 6/20/2009

Question
My husband left this company before the end of 2008. AFLAC manages they FSA and Dependant care accounts. We were told by AFLAC we had until 5/29/09 to submit claims incurred within the period. We faxed them that day ($2,500). Now it turns out the employer was bought out by another company on June 1st, 2009 and they are claiming they are not responsible for paying us the $ they deducted from my husband's payroll. AFLAC confirmed they received the claims on time (even though THEY entered it into their system after the claim period ended). AFLAC spoke with the HR dept at the old/new company and they claim this is a "debt" and the new company does not have to pay debts. In our opinion this is not a debt, they took the $ from my husband's paychecks and they need to give it back. There's got to be some protection for employees who blindly trust employers to take their $ aside for a FSA so they cannot simply steal it under whatever figure they come up with. SOS pls advise! where do we go? can the IRS help us?
THANKS!!!

Answer
FSA plans are regulated by the IRS and the Department of Treasury and are considered a group health plan.

Department of Labor under the ERISA section can take complaints for an Erisa violation.

You can also find an attorney that will take the case on contingency and sue the company for Erisa violations and actually the fudiciary of the company plan can be sued privately as well as the company. It is the fudiciary's duty to be sure that the plans are solvent and all funds deducted from paychecks for the plans are safe and secure. The funds should be set aside in a separate account to be used for only the FSA amounts.

I would contact all of the above.

Shirley  

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