When employees take leave or are temporarily laid off, an employer advances them the health premium and permits them to make "catch-up" deductions under the employer's POP.

Pre-tax deductions are made on an per-hour basis. If the employees do not work enough hours during the remainder of the the plan year to re-pay the advanced premiums through pre-tax deductions, may the employer require the employees to repay the balance due on an after-tax basis after the plan year closes?

The FMLA regulation states that catch-up contributions may also be made on an after-tax basis. See 1.125-3 Q&A 3 (3)(iv). Is this an all-or-nothing rule or can a portion of the catch-up be made pre-tax, and another portion be made after-tax?:confused:

This is an old thread, but I figured I'd throw a response out anyway. Catch up contributions can be made pre-tax and /or post-tax. I don't see anywhere that it has to be all or none. You should be able to use a combination of the two.