Creating pre-tax and after-tax benefits plans

Health, dental, or vision benefit plans can be defined for employees to select pre-tax or after-tax contributions.

Note: In order for the contribution to be converted to after-tax as elected, the benefit plan must be Category: Health, Dental, or Vision; and Coverage Type of Coverage Options.
  1. Select Benefits > Plans > Benefit Plans.
  2. Click Create.
  3. Follow the steps for Creating basic benefit plans.
  4. On the Main tab, specify this information specific to pre-tax and after-tax benefit plans:
    Category
    Specify Health, Dental, or Vision.
    Coverage Type
    Select Coverage Options.
    Coverage Class
    Select Employees.
    Contribution Tax Type
    Select Both.
    Default Tax Type
    Select Pre Tax.
    Allow After Tax Election
    Select this check box.
    Note: Allow After Tax Election is only available upon update of a record. This cannot be changed once there are enrollments associated to the contribution rule.
  5. On the Details tab, specify the annual contribution amounts in the Coverage columns.
    • Pre Tax amounts can be elected by the employee as pre tax or after tax.
    • After Tax amounts must be elected as after tax.
  6. Click Save.