Pre Tax Payroll Deductions
PRE-TAX PAYROLL DEDUCTIONS
The City's "Cafeteria Plan" (qualified under IRS Section 125) provides employees a choice between post-tax and pre-tax payroll deductions of employee premiums for the life, medical, dental, and disability plans, as well as pension and deferred compensation.
You can elect to have these premiums paid from your pre-tax pay. With the Cafeteria Plan, federal withholding tax is calculated after the dollar amount of your portion of the life insurance, medical, dental, and/or disability plan premiums are deducted from your gross pay. The reduced amount of taxable pay is reported to the Internal Revenue Service.
You may change your election within 30days if you have a "qualified event" or during the annual Open Enrollment.
PLEASE REFER TO YOUR PLAN BOOKLETS
Eligibility provisions, rates, and benefits may change from time to time. Notification will be provided via mailers, paycheck attachments, and/or the Employee Newsletter. In all cases of discrepancies, the plan documents prevail.