On October 10, we received the following alert from the UCPath Center. The communication was sent to 500 UCLA employees.
The Internal Revenue Service (IRS) requires all transactions made through a flexible spending account (FSA), including those made using a payment card, to be substantiated. The substantiation process is carried out by WEX, UC's FSA administrator.
As per information from WEX, there are unsubstantiated Health FSA claims for the 2020 plan year (January 1 – December 31, 2020) associated with your account. Earlier this year, we sent a letter to remind you to take action to resolve the unsubstantiated claims by submitting the necessary documentation to WEX.
Since the necessary documentation has not been provided to substantiate these Health FSA transactions, the claim amounts will be treated as taxable income, and applicable income taxes will be withheld from your pay.
- If you are paid on a biweekly basis, taxes on the unsubstantiated amounts will be reflected on your October 25, 2023, paycheck.
- If you are paid on a monthly basis, it will impact your November 1, 2023, paycheck.
To avoid this situation and ensure compliance with IRS regulations in the future, please make sure to submit documentation to substantiate your claims to WEX by the given deadline.
If you have any inquiries or concerns regarding these unsubstantiated payment transactions, please contact WEX at 1-844-561-1338, Monday – Friday from 4:00 a.m. – 7:00 p.m. PST, or email customerservice@wexhealth.com.
Thank You,
UCPath
(855) 982-7284
Monday - Friday from 8:00 a.m. - 5:00 p.m.
ucpath.universityofcalifornia.edu
