Deductions for medical, dental, vision, and Flexible Spending Accounts are payroll deducted on a pre-tax basis. This means you do not pay taxes on those dollars, thus reducing your taxable income.
Once you enroll in pre-tax benefits, either as a new hire or during Open Enrollment, your choices will remain in effect for the rest of the plan year unless you (or your eligible dependent) experience a "Qualifying Life Event." Employees are responsible for notifying the Human Resources office within 30 days of a qualifying event.
When premium deductions are payroll deducted on a pre-tax basis, IRS regulations have specific rules about allowable mid-year changes to benefit elections.
Examples of Qualifying Events:
- Change in Marital status (marriage, divorce, death)
- Change in the number of dependents (birth, adoption, death, child reaching limiting age of 26)
- Change in employment status for employee or spouse (termination of employment, change in hours worked)
- Entitlement or loss of eligibility for Medicare or Medicaid
- Change of coverage due to spouse's employer Open Enrollment
Employees are responsible for notifying the Human Resources office within 30 days of a qualifying life event to make a change of coverage (i.e., add/remove a dependent from health, dental, vision), or to request an election change under a PayFlex flexible spending account. The change requested must be consistent with the life event that has taken place.
HR Contact: Julie Nohrenberg, 531-622-2232 or Cindy Croy, 531-622-2231