What happens to Flexible Spending Accounts if an employee is furloughed?

So, what happens to a Flexible Spending Account if an employee is furloughed?

According to FSAFeds, any payroll deductions through an FSA are stopped for furloughed employees. Employees will continue to be enrolled in their Health Care FSA, but will not be able to get reimbursed for any claims incurred as long as they have a “non-pay" status. FSAFeds indicates that employees will get reimbursed again once they return to a pay status and allocations will restart. Any missed deductions from paychecks would be made-up or recalculated over remaining pay periods to match a yearly FSA contribution.

Your FSA administrator is the best source for any questions about your individual Flexible Spending Account (balance information, claims details, eligibility and more). FSAstore.com partners with more than 100 FSA administrators.

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