What happens to FSA contributions (paycheck deductions) when an employee goes on a leave of absence?
For a paid leave of absence, deductions will continue to be taken from paychecks during the leave. For an unpaid FMLA leave of absence, employees may elect to prepay contributions, or upon returning may elect to catch up missed contributions by increasing their remaining paycheck deductions for the calendar year, or may forego missed contributions. For an unpaid non-FMLA leave of absence, employees may elect to prepay contributions. For more information, refer to Unpaid Leaves in the Time Off section of the Employee Handbook. Contact your HR department for details.
Related Questions
- What happens to the contributions that have already been invested if an employee wants to opt-out after deductions have begun (i.e. after entry date)?
- What happens if an employee gets transferred during the month? Which office will make deduction of contributions?
- What happens to pension and benefit contributions while an employee is on leave?
