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Pay cut for employer provided health benefits?

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Shana819

Junior Member
Pay cut for health benefits?

What is the name of your state? New Jersey.
I have been an employee for 3.5 years. My employer offers to provide health insurance to full time employees at no cost to the employee. I have been a FULL time employee for 2 years but did not need insurance. Now that I am accepting the offer, I am being told that my pay will be reduced to cover the cost of my insurance because my previous pay increases were based on the fact that they did not pay this benefit for me. If that is true, it was not made knowm to me at all. Not to mention that I received pay increases whle still a part time employee! Is this legal? Is there anything I can do? Thank You for any help you can offer.
 
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pattytx

Senior Member
Maybe they are talking about pre-tax deductions for your insurance (IRS Section 125 plan). This provides that your taxable wages (salary for lack of a better term) are "reduced" by the amount of the premiums deducted, thereby resulting in a tax savings for you.

Is the amount of your salary reduction equal to the amount of your required premium deductions?
 

Shana819

Junior Member
pattytx said:
Maybe they are talking about pre-tax deductions for your insurance (IRS Section 125 plan). This provides that your taxable wages (salary for lack of a better term) are "reduced" by the amount of the premiums deducted, thereby resulting in a tax savings for you.

Is the amount of your salary reduction equal to the amount of your required premium deductions?
Thank you Pattytx. They do offer a 125 plan but the reduction is outside of that. The office mgr said that I could use it that way if I wanted to. Yes, the amount of salary reduction is almost equal to the premium. The fact is that I am the only person to whom this applies. The wages of the other insured employees is not being affected. I could see if they needed to adjust future increases, but to take away previous raises because I wasn't insured at the time just seems wrong. Is it?
 

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