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Q: Pre tax medical insurance premium ( No Answer,   1 Comment )
Question  
Subject: Pre tax medical insurance premium
Category: Business and Money
Asked by: shreem-ga
List Price: $2.00
Posted: 07 Nov 2005 12:02 PST
Expires: 11 Nov 2005 09:02 PST
Question ID: 590199
I am a small-business owner. We provide medical insurance to our
employees. The employee contribution to the insurance is deducted on a
pre -tax basis using a section 125 cafeteria plan. One of our
employees does not want to enroll in our medical insurance plan, since
he has an individual plan from a different company. The individual
plan is cheaper than the company plan. The employee wishes to pay his
premiums using pre-tax dollars. Is this possible ?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Pre tax medical insurance premium
From: dvd72-ga on 07 Nov 2005 20:48 PST
 
Simply, NO.  The employee cannot use their own health plan for pretax
purposes.  You have a "master plan" in place.  You might want to
calculate the difference in the premium amount on a montly basis and
calculate how much money in taxes the employee is losing since it
would not be considered a pretax plan.  Just a suggestion.

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