murphree1960
Junior Member
What is the name of your state (only U.S. law)?
My employer failed to withhold pre-tax funds to be allocated to my Flexible Spending Account in 2012. I did not catch the error because I rarely look at my payroll stub and the fact that we have direct deposit. I am an hourly employee and sometimes I have overtime and sometimes not. Therefore I never noticed a difference in my take home pay. I did look at my payroll stub in January, 2012, at the beginning of the year and the FSA was being deducted. My “Benny” card was loaded with the $2500.00 that I had elected and could log in online to the Flex Spending Account website and periodically see my transactions. Everything looked as it should.
I realized this was not coming out of my bi-weekly check in December 2012 when I was looking over my deductions on my last check stub for 2012, getting ready to complete the paperwork for the FSA year 2013.
I had elected $2500.00 for 2012 year and $2000.00 for 2013 year.
Come to find out there were only 2 deductions taken out of my check which were the first 2 payroll checks for 2012 and then the deductions just stopped. I agree that the money should be paid back.
Here’s the problem… Payroll is currently deducting for the year 2012 and the year 2013 and both are being taken out of my paycheck and titled FSA. With the W-2 I just received for 2012, it has only the 2 FSA amounts ($192.30) that were taken out of my pay check for the 2012 year. ($2500.00 divided by 26 weeks times 2)
When I receive my W-2 for 2013, it will show a total amount of $4307.70 taken out. (2,307.70 + $2000.00) The IRS only allows $2500.00 per year. I won’t be getting the tax break for 2012 when I file my taxes plus I will only get a $2500.00 tax break for 2013.
This problem makes me furious by no means and only see 2 solutions but would like more advice on the right way this should be handled. It was my self and one other employee that this happened to.
Scenario 1: Have payroll give me a corrected W-2 form for 2012 showing the $2500.00 and still collect from me for it. I’ve been at this company for 15 years and I am not going anywhere.
Scenario 2: Figure what my tax liability would be with and without the corrected W-2 form, have my company credit me for the difference by crediting from what I am currently paying back for the 2012 plan.
I just need and idea if this is the correct way to handle things on my part and my employer's part.
My employer failed to withhold pre-tax funds to be allocated to my Flexible Spending Account in 2012. I did not catch the error because I rarely look at my payroll stub and the fact that we have direct deposit. I am an hourly employee and sometimes I have overtime and sometimes not. Therefore I never noticed a difference in my take home pay. I did look at my payroll stub in January, 2012, at the beginning of the year and the FSA was being deducted. My “Benny” card was loaded with the $2500.00 that I had elected and could log in online to the Flex Spending Account website and periodically see my transactions. Everything looked as it should.
I realized this was not coming out of my bi-weekly check in December 2012 when I was looking over my deductions on my last check stub for 2012, getting ready to complete the paperwork for the FSA year 2013.
I had elected $2500.00 for 2012 year and $2000.00 for 2013 year.
Come to find out there were only 2 deductions taken out of my check which were the first 2 payroll checks for 2012 and then the deductions just stopped. I agree that the money should be paid back.
Here’s the problem… Payroll is currently deducting for the year 2012 and the year 2013 and both are being taken out of my paycheck and titled FSA. With the W-2 I just received for 2012, it has only the 2 FSA amounts ($192.30) that were taken out of my pay check for the 2012 year. ($2500.00 divided by 26 weeks times 2)
When I receive my W-2 for 2013, it will show a total amount of $4307.70 taken out. (2,307.70 + $2000.00) The IRS only allows $2500.00 per year. I won’t be getting the tax break for 2012 when I file my taxes plus I will only get a $2500.00 tax break for 2013.
This problem makes me furious by no means and only see 2 solutions but would like more advice on the right way this should be handled. It was my self and one other employee that this happened to.
Scenario 1: Have payroll give me a corrected W-2 form for 2012 showing the $2500.00 and still collect from me for it. I’ve been at this company for 15 years and I am not going anywhere.
Scenario 2: Figure what my tax liability would be with and without the corrected W-2 form, have my company credit me for the difference by crediting from what I am currently paying back for the 2012 plan.
I just need and idea if this is the correct way to handle things on my part and my employer's part.