Caroline Watts is an employee of Lavender Creek Farm. She has come to you, the payroll accountant, for advice about her health insurance premiums, specifically if she should have them deducted pre-tax or post-tax.
Required:
What reason(s) would you give her for having the medical premiums deducted on a pre-tax basis?
Caroline Watts is an employee of Lavender Creek Farm. She has come to you, the payroll accountant, for advice about her health insurance premiums, specifically if she should have them deducted pre-tax or post-tax.
Required:
What reason(s) would you give her for having the medical premiums deducted on a pre-tax basis?
All health insurance premiums must be deducted on a pre-tax basis. checked
The premium amounts are reduced by deducting them on a pre-tax basis. checked
The employee’s income that is subject to income tax(es) is reduced. checked
The income subject to Social Security and Medicare taxes is reduced.
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Caroline Watts is an employee of Lavender Creek Farm. She has come to you, the payroll accountant, f...
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