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#1
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Sec 125 cafeteria plansWhat is the name of your state?What is the name of your state? Pa While payrole deductions to pay health insurance premiums under a sec 125 plan are non taxable (federal income tax), I'm trying to find out how they are treated by Pennsylvania. I'm sure they are not backed out my state wages (or ss and medicare wages for that matter). MY companys insurance agent says that they are, but then he' s an idiot. |
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#2
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| If I am understanding you correctly, you are asking whether or not pre-tax benefits are deducted before state taxes. You believe they are not, and do not believe your HR representative when he says that they are. If I remember correctly, the last state to approve Section 125 pre-tax benefits being deducted before state taxes was my own state, MA. If I am correct, then so is your HR representative, whether or not you believe him to be an idiot. I can confirm that but not till Tuesday. It IS a holiday weekend, after all. |
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#3
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| According to my PA counterpart, Section 125 deductions are taken before both Federal AND state taxes. |
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