Pre-tax dollars for health insurance?

Question

My husband's company doesn't pull out our health insurance payments pre-tax. Does it cost them money to pull it out pre-tax? Where can I go to learn more about this so that we can build a case as to why they should do this for their employees.

Answer 1

It costs them to administer the pre-tax treatment.  More accounting expense.  Sounds lame.

Answer 2

This usually happens with small employers who don't understand how to make the change. Just be aware if you go pre-tax employees will only be able to make changes to their benefits once per year unless they have a qualified event.

His employer will need to set up a Section 125 Premium Only Plan (POP). Even though the employer will have to pay fees for the plan they will save more than enough in payroll taxes to make up the difference.

You can find more info here http://www.insurancemadeeasy.biz/employe...

An application can be found here http://www.mhmresources.com/er_11.htm