OverviewI. The Institution offers a plan for eligible employees to pay medical and family dental premiums on a pre-tax basis.
Premium deductions paid on a pre-tax basis reduce income and FICA taxes. However, reduction in FICA wages may mean a small reduction in social security benefits.
II. There are strict IRS restrictions regarding when an employee can request a change in the agreement to salary reduction amount.
A. An election to receive Automatic Premium Payments may be ammended or revoked on January 1st of each year or as of a change of status.
Should you require assistance in the interpretation of this procedure, please contact your Human Resources Representative.