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PayslipIQUSA

Health insurance premium on your paycheck

Most employer health, dental, vision premiums are pre-tax (Section 125).

Premiums paid through a Section 125 cafeteria plan reduce federal income tax and FICA. They typically reduce state income tax (PA does not allow this for state purposes). Verify on your benefits enrollment paperwork.

How it usually appears

Category: pre-tax

Tax interaction

  • Reduces federal taxable wages: Yes
  • Reduces FICA wages: Yes
  • Reduces state taxable wages: Usually yes

Official sources

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