The prepay option works best when the employee is able to plan well ahead for the leave.When the leave ends, the employee’s previous salary reduction resumes for the duration of the plan year. The employee’s regular salary reduction election for the duration of the leave is then suspended, but the benefit election remains in force.
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The employee choosing this option voluntarily elects to reduce their final pre-leave paycheck, or to make special salary reduction contributions that will cover their share of the contributions for all or part of the expected duration of the leave. The employee may pay, before commencing the leave, the contributions that would have normally been paid during the leave period. Here are your three options for when your employees are on leave and you won’t be able to pull the regular payroll contribution because they aren’t receiving their regular paycheck.
#There were planes to catch and bills to pay how to
Whether the employee is eligible to take unpaid, job-protected leave under the Family and Medical Leave Act (FMLA) or not, if they have an FSA account there is the question of how to fund the FSA while they are out.
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Or maybe an employee wants to leave on a 3 week vacation, but doesn’t have enough vacation time saved up. Perhaps an employee and/or dependents have a medical issue and the employee needs to take an extended time off. Occasionally we find that an employee must take an approved unpaid leave of absence.