Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Cafeteria Plan - Section 125

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Cafeteria Plan - Section 125


    "Jerry Derfler" <[email protected]> wrote
    Annually one has to sign up for how much money to be withheld from his paycheck for medical expenses under this plan. What happens if one spends all that "budgeted" money by midyear and terminates employment?

    Nothing.

    Does one have to reimburse the employer for additional amounts that would have been withheld during the rest of the year?
    Nope.

    Or does the employer "lose it"?

    It's a loss to the employer.

    Of course, if enough people do that, there won't be any employees in the
    plan anymore.


    --
    Paul A. Thomas, CPA
    Athens, Georgia



  • #2
    Cafeteria Plan - Section 125

    Annually one has to sign up for how much money to be withheld from his
    paycheck for medical expenses under this plan.

    What happens if one spends all that "budgeted" money by midyear and
    terminates employment?

    Does one have to reimburse the employer for additional amounts that would
    have been withheld during the rest of the year?

    Or does the employer "lose it"?

    Appreciate your response.


    Comment


    • #3
      Cafeteria Plan - Section 125

      In article <[email protected]>,
      Jerry Derfler <[email protected]> wrote:
      Annually one has to sign up for how much money to be withheld from hispaycheck for medical expenses under this plan.What happens if one spends all that "budgeted" money by midyear andterminates employment?Does one have to reimburse the employer for additional amounts that wouldhave been withheld during the rest of the year?Or does the employer "lose it"?Appreciate your response.
      Check with your plan manager, but I'd bet you are free and clear.
      No need to repay anything. Similarly, had you not yet spent anything
      and leave employment, you get nothing back.
      --

      __
      Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

      Comment

      The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
      Working...
      X