Repayment of Benefits to Employer??

[McCarthy]

I had a 125 medical savings plan at a previous job. After I left, my employer continued to make payments into my 125 account. I notified them of their error in the continued payments as soon as I was aware of it. They are now trying to get the money back.
My question is, am I responsible for their error? Do I legally,in New Hampshire, (I know that morally I do need to pay this back) owe them the money they continued to give me after I was no longer employeed by them, or am I only responsible for any taxes owed on that money?


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[This message has been edited by McCarthy (edited November 19, 1999).]

 

[Attorney_Replogle]

In my opinion you are not responsible for their actions, based upon what you wrote. Secondly, I do not see why from a legal point of view that you have to pay the former employer back the money. It is their responsibility to get the money back. Additionally, I think that it is their responsibility to send a corrected notice to the IRS and the state tax agency of the correct tax liability for you. You may want to contact your account about the tax liability.

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Mark B. Replogle