How do cafeteria plans work? Should I still be having money deducted for the cafeteria plan if my company no longer offers flex spending accounts? T
Dear Short Check,
In any case, it is illegal for your employer to take money from your paycheck and use it for anything other than the benefit that you signed up for. Assuming that you want to keep your job, then you might want to approach your employer with an “I’m confused” story rather than an “I’m suing you” story. It may be that your previous deduction got carried over, even though the reimbursement plans are no longer offered.
The employer can correct the error, and the money would come to you in your paycheck, taxed like all of your other wages. The IRS would not come after you for taxes on money that you never technically received. So no worries there.