Mandatory Pre-Tax Payment of Health Insurance

[Guest NWF]

Can an employer mandate that the employee's share of health insurance premiums be made on a pre-tax basis via the cafeteria plan. If so, how have you seen this structured? Thanks

[Scott]

Did you ever get an answer to this question, or does anyone else out there know the answer? I would like to know, too. Thanks.

[Guest Compliance questioner]

You asked:

Can an employer mandate that the employee's share of health insurance premiums be made on a pre-tax basis via the cafeteria plan. If so, how have you seen this structured? Thanks

Yes the employer can mandate this. The employee still has the choice between benefits and cash. They can elect to receive their salary in cash or they can elect to receive the benefits, but only on a pre-tax basis.

This would need to be listed in the plan document as the employee, if electing health related benefits, agrees to have these funds deducted on a pre-tax basis.