PayPro Administrators

Hi Bertha, This is in response to your letter dated February 14, We are a Third Party Administrator (TPA) that administrates Flexible Spending Accounts FSA on behalf of employersIn ***’s case, she had signed an election form at the beginning of to deduct and pre-tax
$per pay day for dependent care for the yearOnce the election form is signed, the employee is locked in for the plan year unless they have a qualifying event such termination, change in dependents, marriage, etcFlexible Spending Accounts are a use or lose it plan meaning, if the participant doesn’t submit receipts for the plan then the money is forfeited to the employer*** did not submit receipts and was upset that she could not get her money based on the rules of the planThe plan is sponsored by the employer and we administrate according to the employers plan documentsAfter we discovered that *** did not clearly understand what she had signed up for, we contacted the employer to see if they would be willing to refund her and tax her on the money since she did not understand what she was signing up forThe employer agreed and refunded her as well as adjusted her W-for If you need further information please contact me at the number below Thank You, *** *** General Manager