Deductions

Deductions track employee and company premiums. Flex plans use four kinds of deductions: flex company, pretax, after-tax, and company.

Flex company Used if an employee spends flex credits to purchase a benefit. The flex company deduction has no effect on an employee's taxable wages, and can be printed on employee payments to show how flex credits were used.

Pretax Used if an employee spends pretax dollars to purchase a benefit.

For a flex plan in which an employee can spend flex credits, a pretax deduction is created after the employee has spent all of his or her flex credits.

For a flex plan in which an employee does not spend flex credits, a pretax deduction is created for any benefit with a positive employee cost.

After-tax Used if an employee spends after-tax dollars to purchase a benefit.

The Benefits Administration application creates an after-tax deduction for benefits with an employee cost when flex and pretax dollars have been spent.

Company Used to track the company's cost of benefits in addition to, or instead of, flex credits.