Pre-Tax Benefits

Summary

Pursuant to Section 125 of the Internal Revenue Code, and the Florida Administrative Code, all benefit plans, other than the optional life insurance plan, are offered on a pre-tax basis for active State University system employees whose premiums are paid through payroll deduction. Premium payments for health, life, and supplemental plans, and amounts for Flexible Spending Accounts are deducted from the participant’s gross income before taxes are applied; the amount paid for premiums is therefore tax-sheltered. By electing benefit plans on a pre-tax basis, the participant will pay less federal and Social Security taxes while receiving more take-home pay than an election of the same benefit plans with payment on a post-tax basis would yield.

Supplemental insurance plans and flexible spending accounts are available only on a pre-tax basis, but the pre-tax arrangement is optional on health and life insurance premiums. To waive the pre-tax arrangement, a Pre-Tax Premium Waiver form must be completed within 60 days of initial employment within the State University system employees and during each annual open enrollment period.

Pre-Tax Premium Waiver Form