MEDICAL INSURANCE EMPLOYEE DEDUCTION INFORMATION
Employee bi-weekly contributions will be deducted on a pre-tax basis, tax laws permitting.
Pre-Tax Payment of Premium Contributions
The Colleges has established the pre-tax payment of medical, dental, vision and health and dependent care savings account employee contributions as a tax-saving benefit feature for its employees. Payment of premiums on a pre-tax basis prohibits enrollees from reducing coverage at any time unless there is a qualifying event (see below).
Employees' premium contributions will be automatically withheld from pay as "pre-tax money", which means the premium amount is not subject to income, Social Security, or Medicare taxes. Premiums are collected on a pre-tax basis automatically, unless the employee elects to waive this treatment. Opportunity to waive this treatment and pay premium contributions with "after-tax money" is at time of employment, Open Enrollment, or if there is a change in Family Status (see Changing Coverage below). This will mean that the employee will give up the tax savings of paying with pre-tax money.
Please note: For domestic partner coverage, this pre-tax payment is not available.
When the employee's premium contributions are withheld on a pre-tax basis, certain Internal Revenue Service (IRS) guidelines affect the employee's ability to change coverage. Employees may elect to reduce their coverage (i.e., to cancel enrollment, change from Family to Single coverage) only during open enrollment or if there is a change in Family Status. Family status changes include marriage, divorce, death of a spouse or dependent, birth or adoption of a child, a change in the employment status of the employee or his/her spouse (including changes between part-time and full-time status), an unpaid leave of absence for the employee or his/her spouse, or a change in the health insurance coverage for the employee or his/her spouse attributable to the spouse's employment. If there is a change in family status that entitles the employee to change his/her election, he/she may not reduce the elected amount for medical expense reimbursement below the amount of reimbursement already paid to the employee during the plan year.