Guest benefitsanalyst Posted November 21, 2003 Posted November 21, 2003 Should SS/Medicare taxes be taken from Section 125 deductions?
Harwood Posted November 21, 2003 Posted November 21, 2003 "Pre-tax contributions (salary reductions) made by an employee to a qualified cafeteria plan are excluded from the employee's income. They are not subject to federal income tax withholding or social security, Medicare, and FUTA taxes . . ." The Payroll Source [if 401(k) contributions are done through a cafeteria plan arrangement, they are subject to social security, Medicare, and FUTA.]
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