What is the difference between Pre-Tax and After-Tax Plans?
When enrolled in a Pre-tax Medical and/or Dental Plan, premiums are deducted from the employee’s check before Federal, State and Medicare taxes are calculated. Having premiums deducted on a Pre-tax basis reduces the amount of taxable income. Premium contributions made by an employee for the cost of coverage for a registered domestic partner must be paid on an After-tax basis. In addition, an employee may not make pre-tax contributions to a Flexible Spending Account on behalf of a domestic partner.
