Pre-Tax Health Insurance for Part-Timers? Who Knew?

Attention part-timers! While we’re waiting for national health care reform to take effect, are you taking full advantage of the Massachusetts reforms?

This doesn't cut it anymore.

Did you know that employers must offer eligible part-time employees the option to use their wages to pay for health insurance premiums on a pre-tax basis?

Who’s eligible? (And who’s required to offer this?)

• Do you work more than 64 hours a month (on average) for your employer?
• Does your employer have 11 or more full-time equivalent employees?

Then if you buy insurance through the Mass Health Connector, your employer must offer you the option to have the cost of the premium taken out of your paycheck pre-tax. This option is called a “Section 125 Plan”.

You would save money on state, federal and FICA withholding taxes. Your tax savings could be as much as 40% of the premium cost. Employers also save on FICA taxes.

More details

• Your employer does not have to contribute to the cost of your premiums, but
• They have to allow you to pay for your premiums pre-tax. That is, they set up the paperwork and the process to funnel some of your paycheck to your insurance company pre-tax.
• Your employer is allowed to offer pre-tax withholding to part-timers who work less than 64 hours a month, but that decision is at their discretion.
• Your employer must offer eligible employees access to one or more health care coverage options. (“Access” means the right to participate, not to receive subsidized coverage.)
• If you work for two or more employers, you may only participate in one employer’s plan.

Is my employer on top of this already?

• A copy of the employer’s Plan must be filed with the Health Connector. You can ask your employer about their plan or check the Mass Health Connector site to see whether they’ve filed.
• Your employer might not be aware of this requirement, which has been law since 2007! Check out this petition to organize your co-workers and remind your employer of their obligation.

Next steps

• What do you think? Will this help you or are you excluded?
• Are you already taking advantage of this option? How are you finding it?
• If your employer is not offering the option to part-timers who work at least 64 hours a month, have you informed them of their responsibility?
• Have you considered lobbying your employer to offer the option to all part-timers?

Leave a comment here. Let your fellow educators know what you think — and how it goes if you take action!

Tools for organizing

• Download this petition
• More information in the Section 125 Handbook.

Tags: , , , ,

225 Responses to “Pre-Tax Health Insurance for Part-Timers? Who Knew?”

  1. Great blog here! Also your web site a lot up
    very fast! What host are you using? Can I am getting your associate
    link in your host? I desire my web site loaded up as fast
    as yours lol

  2. this article says:

    certainly like your web-site however you need to test the spelling on several
    of your posts. Many of them are rife with spelling
    problems and I find it very troublesome to inform
    the reality however I will certainly come again again.

  3. I am really loving the theme/design of your web site. Do
    you ever run into any web browser compatibility issues? A few of my blog readers have complained about my
    blog not working correctly in Explorer but looks great in Firefox.
    Do you have any suggestions to help fix this problem?

  4. sports says:

    ցreat put up, very informative. I ponder ѡhy the otheг ѕpeϲialists of this ѕector don’t realіze this.
    You should continue your writing. I am sure, you haѵe a huge readers’ base аlready!

  5. livedraw sd says:

    A large number of people are getting attracted towards gambling all on the world. In old time people needed to leave home for betting but now it’s crossed all of the boundaries as a result of latest technologies. So, join within the fun today with us – Casino and play in the finest slot games the world wide web has got to offer.

  6. result hk 6d says:

    A large number of people are getting attracted towards gambling all on the world. In old time people needed to leave home for betting but now it’s crossed all of the boundaries as a result of latest technologies. So, join within the fun today with us – Casino and play in the finest slot games the world wide web has got to offer.

  7. What’s Taking place i’m new to this, I stumbled upon this I’ve
    discovered It absolutely useful and it has helped me
    out loads. I’m hoping to give a contribution & assist other customers like its aided me.
    Good job.

  8. DIY says:

    Hiya very cool blog!! Man .. Excellent .. Amazing ..
    I’ll bookmark your blog and take the feeds also?
    I’m happy to seek out so many useful information right here in the post,
    we need work out more strategies in this regard, thank you for sharing.
    . . . . .

  9. For most recent news you have to pay a quick visit world-wide-web
    and on world-wide-web I found this web page as a finest web page for most up-to-date
    updates.

  10. wiecej info says:

    excellent post, very informative. I ponder why the other specialists of this sector do
    not notice this. You should continue your writing. I am confident,
    you have a huge readers’ base already!

  11. qiuqiu poker says:

    Hi there. I discovered your website by the usage of Google at once as buying similar topic, your website got here up. It seems good. I’ve bookmarked it in my google bookmarks to see then.

  12. Nell says:

    Hmm it looks like your website ate my first comment (it
    was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m
    thoroughly enjoying your blog. I as well am an aspiring blog
    writer but I’m still new to everything. Do you
    have any suggestions for inexperienced blog writers?
    I’d definitely appreciate it.

  13. Hi mates, how is all, and what you would like to say concerning this post, in my view its actually amazing in support of me.

  14. Alda says:

    Hi to every one, it’s in fact a good for me to go
    to see this site, it contains helpful Information.

  15. bmw z4 says:

    Hi,
    I want to tell you that I’m visiting your site
    for some time and you post really good content.
    I shared your latest post on twitter and goot a lot
    of positive feedbacks.
    Keep up the great work!

  16. Lowell says:

    I was recommended this blog by way of my cousin. I’m now not sure whether or not this publish is written through him as no one else
    know such precise approximately my problem. You’re amazing!
    Thank you!

  17. check beneath, are some entirely unrelated internet sites to ours, nonetheless, they are most trustworthy sources that we use

  18. Right here is the perfect webpage for anyone who wants to understand this
    topic. You realize so much its almost hard to argue
    with you (not that I personally will need to?HaHa).
    You definitely put a brand new spin on a subject that’s been discussed
    for decades. Great stuff, just great!

  19. Webroot has a password manager built in.

  20. Bryant Luhr says:

    Howdy wollte Ihnen einen schnelen Heads-up geben. Die Worte iin Ihren Post scheinen aus demBildschirm in Lauf Opera. Ich bin nicht sicher, ob dies eein Format Ausgabeoer etwas mit Internet-Browser tun Kompatibilität,aber ich dachte, dachte, ich würde schreiben, um Ihnen mitzuteilen. Der Still undDesign gut aussehen aber! Hoffe, Sie bekommen ddas Problem Festbald. Danke

  21. Cumpara Raspberry Pi 3 Mannequin B 1 Gb RAM de la eMAG!

  22. Raspberry Clafouti Recipe + Larger Picture.

  23. May I simply just say what a relief to find an individual who actually knows what they’re talking about on the web.
    You definitely realize how to bring an issue to light and make
    it important. A lot more people need to check this out and understand this side
    of the story. It’s surprising you aren’t more
    popular given that you surely possess the gift.

  24. What’s up, always i used to check web site posts here in the early hours in the dawn, for the reason that i love to gain knowledge of more and more.|

  25. Have you ever considered publishing an ebook or guest authoring on other websites?

    I have a blog centered on the same subjects you discuss and would really like
    to have you share some stories/information. I know my visitors
    would value your work. If you are even remotely interested, feel free to shoot me
    an e-mail.

Leave a Reply