Terminated in NJ - Last paycheck deducted HC premium and FSA

[qc4ever]

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

My company fired me on 11/04/08 and cancelled my benefits (health, dental, eye) as of 11/5/08. However, on final paycheck which covered 10/27 - 11/09, they deducted the usual bi-monthly insurance premium I paid and they also deducted for my FSA account bi-monthly payment.

My FSA account , which hasn't had the new amount posted says: "... per the IRS guidelines, it is one of the benefits of the plan that if you use the entire elected amount and are then terminated from the employer you do not have to return any of that money. On the flip side, if you were not to use it all and terminated, it is the employers benefit that the remainder gets forfeited back to them. There is no balance due on the account."

So, I'm wondering if they have taken out these payments illegally as per IRS guidelines. What recourse would I have to get them back? If no balance was due as of 11/05/08 when it was cancelled, why would they deduct from pay? Not sure about HC premium or how to check on that.

Note: I don't have a good separation with this company right now. They took over my employer in July and I had an impeccable work history with prior company. Takeover Co. is also contesting my UI claim for "misconduct" because they say I didn't file a report on a (fender-bender) accident one of my drivers had within 24 hours. Accident occured after 5PM on Friday, company not open on Sat/Sun, I reported verbally 7AM Monday and filed report before day end. Next day fired.

[ecmst12]

The FSA deduction was definitely appropriate. If it caused there to be a positive balance in your FSA account, then you should have a set amount of time to submit claims for that money. If the balance in your account was still negative or 0, then that's it. You don't get anything back but don't have to pay back the overage either. But you agreed to the deductions so as long as you get a paycheck, they can take the deduction.

As for the health insurance deduction, that depends on whether premiums are paid ahead or behind. If paid behind, then the deduction was appropriate. If paid ahead, it may not have been. You can contact HR if you are not sure.

[qc4ever]

Thanks, that helps on the FSA so we don't bug them for that.

I will try to get an answer from HR on the HC premium, but keep in mind they are fighting my Unemployment Benefits now and aren't giving me any help. Is there another way to determine if payments are ahead or behind? Would my HC carrier tell me that information?

[cbg]

The HC carrier would not have any idea as that is strictly a payroll function.

[qc4ever]

Thanks, we'll make a stab with our local HR person.

[momm2500]

standardly your health insurance premiums are behind. if you look at your paycheck, you are normally not paid in advance for your work. it is usually one or two weeks behind. go back to your first paycheck and if your insurance was effective say 1/1/08 but you did not get paid for that period until 1/12/08 then your premium is behind. with most FSA accounts, your employer runs the financial risk of fronting all the money that you have indicated you want deducted for the entire year. meaning if you elected a total of $1000 for the year for FSA, your employer pays this money to the company. you are then eligible to claim that full amount the day after your FSA is effective. for instance you had surgery and your oop expenses were covered under FSA. you could have been reimbursed the full $1000 even though you did not contribute all the money. Also, if you did not use all the money....it does go back to the employers fund. If you have money in there, go and get receipts for everything from asprin to bandaids since they are deductible.
these premiums were not taken out illegally.