Transportation and Parking benefit-Incorrect deduction by Employer

[karan2405]

What is the name of your state (only U.S. law)? NJ/NY

I am working for company A.I opted for transportation and parking benefit starting 1-Jan-2013.Due to change in job location,I requested my employer to cancel the benefit in Sep 2013.My FSA account (where deductible money get deposit) also deactivated in Sep-2013.

My employer didn't stop deducting the amount from Sep-2013 to Jan-2014.When I notice some discrepancy in W2,I raised concerned about it to my employer and they said we cannot refund it but we can extend your account end date so you can file claim.Since I didn't travel in Sep to Jan so I cannot claim it and I will lose my hard earned money.

Due to payroll department mistake ,around 1000 USD dollar stuck in that account which will forfeit soon.


Please advise about my rights in this matter.

 

[swalsh411]

How did you cancel? Can you prove you canceled? Why didn't you review your pay stubs?

 

[karan2405]

I cancelled on phone.I have a proof that my employer cancelled my FSA account on Sep-2013 but didn't stop deduction.
Unfortunately,I faced problem in accessing my detail paycheck for few months.

 

[cbg]

And you reported this problem - when? To whom?

 

[karan2405]

I reported this problem to my employer benefit team and senior management.
Discover account team said,you have to ask your employer to call us to resolve the issue
My Employer benefit team said,we cannot refund due to IRS regulations around it

 

[cbg]

I work in Employee Benefits and it frustrates the hell out of me when people report to us that they can't View Paycheck. We are not Payroll. We are Benefits. Why do people think that we can fix their Payroll issues? (Yes, they do it regularly - I had one such complaint today.)

I'm not an expert on the Transportation benefit since that's handled by a different area. But I do know that it is highly regulated by the IRS and I would not be even remotely surprised to learn that refunds are prohibited. Extending your account date so that you can use the money and not lose it may well be the best you can get.

 

[karan2405]

I understand.

But this a violation by employer payroll department,don't you think that I should report to IRS and Labor try to get refund.

My employer gave me option to extend account till DEC 2013 but I do not have any transportation expenses from past so how I will file a claim?

 

[cbg]

If the law does not permit a refund, and knowing what I know about other pre-tax deductions I do not have any reason to disbelieve your employer when they say it is not permitted (I could find out fairly quickly but I'm going into a meeting in less than five minutes) it doesn't matter who you report it to; you're not going to get a refund. Neither the DOL nor the IRS is going to order a refund in violation of the law.

 

[swalsh411]

I cancelled on phone.

So you have no proof. Is your employer agreeing they made a mistake or are they saying they have no record of your request to cancel?

Either way it doesn't much matter. When you make a change to your deductions (or think you did) you must verify on your pay stub. Nobody is looking out for you but you.