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Can employee on personal leave of absence pay health premiums through payroll using her combined time off?


Belgarath

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Not knowing doodley about cafeteria plans, I just wondered if there is any sort of a general answer to this, or is it purely dependent upon plan terms, or a combination of both, or perhaps neither?

Can a plan permit an employee, on a personal leave of absence, to pay her health insurance premiums through payroll using her combined time off?

If yes, can this continue being a pre-tax deduction or can this be done only as a post-tax deduction?

I have a faint memory that you have to make an irrevocable salary deferral election prior to the beginning of the year, but this can perhaps be modified for a change in status? If an unpaid absence qualifies as such a change in status, then it would seem to me it ought to be possible to use CTO which presumably is run through normal payroll?

Thanks.

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The cafeteria plan allows the employee to forego some of her pay in exchange for the benefit (medical coverage).

If the leave is unpaid, there's no pay to forego.

If the company allows her to use her CTO to receive some pay during her leave (even if it's only a portion of her full time pay), then the CTO pay likely can be run thru the cafeteria plan for the medical benefit. I think it's a question of whether the company is equipped to handle and wants to allow a-little-bit-paid leaves.

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