Most Popular Questions
Because your qualified reservist distribution (QRD) refund is subject to the same employment taxes and deductions as your other taxable wages, it will not appear on your paycheck as an additional net $400.
IMPORTANT: FSAFEDS is a pre-tax benefit - the allotments (FSA contributions) that funded your HCFSA came from your pre-tax salary. You did not pay federal tax or other employment tax deductions (e.g., Social Security withholdings) on those allotments. Now that you're getting your refund, those taxes have to be taken out.
Your refund gives you $400 more in salary that must be taxed before it can be paid to you. Since we don't know your individual salary taxes, we can't tell you what your "net" (after taxes and deductions have been taken) refund will be. However, we do know that the amount paid to you will be less than the gross dollar amount of the QRD refund, since taxes will be applied.