Posts Tagged ‘health insurance’

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

Wednesday, April 28th, 2010

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.
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