This plan allows employees to pay their health care premiums, dental premiums, and flexible spending account (FSA) contributions on a pre-tax rather than after-tax basis. Employees agree to have their salaries reduced by the amount of their premiums and spending accounts. Less federal, state and Social Security taxes are deducted from their reduced paychecks; therefore, take-home pay is greater by participating in the plan. Sections 106 and 125 of the Internal Revenue Code, as amended, allow the County to establish and offer this salary reduction plan.
Participation in the Plan - All County employees who participate in the County's health care plans, dental plans, and flexible spending accounts, and elect coverage that requires payment of employee premiums through payroll deduction may also elect to participate in the pre-tax plan. Participation in pre-tax deduction is optional.
Changes to Participation - This agreement may be changed only during the annual enrollment period. However, should a qualifying event occur that causes a corresponding change in coverage, the agreement may be changed or revoked.
Qualifying Events - A qualifying event is defined as one of the following: marriage, divorce, death of a spouse or dependent, birth or adoption of a child, change in employment of employee or spouse, change in spouse's employer-provided benefit program, and child losing dependent status or reaching the age when he/she can no longer be covered by the plan.