Saturday, January 14, 2012

HR Screwed Up!!

The last 2 years, Y and I have flexed $6000, $5000 for dependent care flex (daycare) and $1000 for medical flex.  Flexing refers to it going to a separate entity before tax.  You then turn in your receipts and get your money back tax free.  We had every intention of flexing for 2012 as it would probably save us at least $1000.  Not sure since we can write off daycare but it is still a loss for us.

Last year we used the flex program through Y's employer.  We assumed that it would be the same amount for 2012 because we didn't change anything or receive notification otherwise.  We thought wrong!  Apparently, they sent out 4 e-mails in November stating that all employees needed to reenroll for their flex benefits or they reverted to $0.  We discovered this yesterday when his paycheck was almost $200 higher than normal. 

Y called HR and they told him about the e-mails.  They said that there wasn't anything that they could do.  The best part is that after further investigation, they discovered that Y isn't on their company wide e-mail.  We were upset about this.  Y talked to his supervisor's boss and he is going to try to do something but I kind of doubt that anything will happen. 

This is his company's screw up.  The best part is that this isn't a small private company.  They should definitely have their act together.

Has anything like this ever happened to you?  How did you handle it?


  1. That stinks, for sure. I know this is a IRS thing and the company may not be able to do anything. I remember a bunch of emails at my husband's company and we had to make decisions by November 15th. (deadline). It really helps save on taxes when it's flexed. So sorry this does sound like someone from HR dropped the ball on this one.

  2. I don't think they will be able to fix it. One of the women I worked with last year had her's messed up by HR and they were not able to fix it because if IRS regualtions

  3. HR won't be able to enroll you now because of IRS regulations. (The thing to know - flex arrangements - health and day care always have to be renewed - they never roll). But that doesn't mean they can't compensate you guys - I'm thinking some cash.

  4. I figured that they wouldn't be able to fix it because of IRS regulations but I want them to change their procedure. At Y's last company, his flex benefits did roll from year to year so we thought it would be the same.

  5. Oh wow,I'm so sorry it happened to you! I hate it when HR screws up but nobody takes responsibility for it. It happened to us before too!