Pre Tax Payroll Deductions
PRE-TAX PAYROLL DEDUCTIONS
The City’s “Cafeteria Plan” (qualifiedunder IRS Section 125) provides employees a choice between post-tax andpre-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 premiumspaid from your pre-tax pay. With the Cafeteria Plan, federal withholding tax is calculated after the dollar amount of your portion of the lifeinsurance, medical, dental, and/or disability plan premiums are deductedfrom your gross pay. The reduced amount of taxable pay is reported tothe 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 benefitsmay 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.