An employee may have a negative prepayment amount when spending account funds are removed from their account. This can occur in two cases:
- An employee is removed from the policy. When an employee is removed from your policy, we no longer require the Prepayments float for their spending account allocation.
- An employee's funds are reduced due to a change in plan design. When an employee's available funds are reduced, the Prepayments float for their spending account allocation is reduced as well.
In either of the above cases, a credit for the employee's previously-paid prepayment amount will be returned to you, in the form of a negative prepayment amount on your invoice.