Paying for Your Benefits
The company pays for some of your benefits and you pay for others. Your cost for benefits is deducted from each paycheck. Many of your benefits are paid before-tax, which reduces the total amount of your federal income and Social Security taxes. In most states, your payroll deductions also will be made on a before-tax basis for purposes of state income taxes.
How Paying Before- or After-Tax Can Affect Changes
This table shows which benefits you may pay for on a before-tax and after-tax basis, when you may change your elections and when the changes will take effect.
Description | Before-Tax Benefits | After-Tax Benefits |
Benefit Options | Medical Dental Vision Health Savings Account (HSA) Health Care Flexible Spending Account (FSA) Dependent Care Flexible Spending Account (FSA) Accidental Death and Dismemberment (AD&D) insurance | Supplemental and Dependent Life insurance Group Legal, Critical Illness, Auto and Home, Legal/Identity Theft coverage |
Changing Your Benefits | You may enroll in or change your elections for most before-tax benefits only: During annual enrollment, When you have a change in status, or If you have special enrollment rights. You may change your contribution amount to your HSA at any time, within plan limits. | You may drop or decrease your after-tax life insurance at any time. You may increase your after-tax life insurance only during annual enrollment or a change in status. |
When Changes Take Effect | Changes or elections made during annual enrollment take effect the following January 1. Changes you make to your FSA as a result of a change in status take effect on the day after your change form and supporting documentation are received by your administrator. In most cases, changes to other coverage as a result of a change in status take effect on the date of the event. For marriage, a change in coverage becomes effective on the first of the following month. | Changes or elections made during annual enrollment that do not require proof of good health take effect the following January 1. If you make changes to coverage as a result of a change in status (and you are not required to provide proof of good health), your new coverage takes effect on the later of the date of the event or the date you complete the request (provided it is within 31 days following the event). If you are required to provide proof of good health to the insurer (either during annual enrollment or if you have a change in status), the new coverage will take effect when the insurer approves it, but not sooner than January 1 for open
enrollment changes. |