thepensionmaven Posted April 17, 2001 Posted April 17, 2001 Is compensation for a premium only plan before or after FICA and FUTA??
Guest TamaraB Posted April 18, 2001 Posted April 18, 2001 When you say compensation, are you referring to "contributions"? "Contributions/Deductions" made as part of a premium only plan are pre-tax (before) FICA, if I'm understanding your question correctly.
thepensionmaven Posted April 18, 2001 Author Posted April 18, 2001 Referring to "salary". Client setting up their own payroll system for cafeteria plan on something like Quickbooks, or some such program. Do they take FICA and FUTA before the salary defferral % is applied to compensation. If know that with a 401(k) contributions are subject to FICA and FUTA, but is it the same with a premium only plan? Thanks.
Guest TamaraB Posted April 19, 2001 Posted April 19, 2001 FICA is taken after the deferral % is applied. FUTA would be exempt.
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