Sunday, February 27, 2011

My work takes my benefits out after tax, is that legal?

I recently signed up for medical/dental insurance through work. My benefits are taken out AFTER taxes. I contacted the benefits department and they say its because the IRS doesn't recognize domestic partners as dependents. My parnter had me on his benefits at American Airlines and he had the benefits taken out pre tax, so is FedEx breaking the law or are am I looking at Sexual Discrimination?
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Regardless of your domestic situation, companies have the option of taking benefits out either pre-tax or after tax. In order to withhold benefits pre-tax, the company has to set up a Section 125 plan.
Source

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