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“Pretax Benefits: Access to Section 125 Cafeteria Benefits and Health Savings Accounts in the United States, Private Industry”

Filed under Salary and Benefits
Posted by Libraries, April 11, 2007
View all posts for April 2007

Eli Stoltzfus, Bureau of Labor Statistics, March 28, 2007.
http://www.bls.gov/opub/cwc/cm20070321ar01p1.htm

When examining compensation packages, there’s more to look at than just wages. Many employers use a range of benefits to attract and retain employees. While all benefits are typically desirable, it is important to take into consideration who is footing the bill: the employee or the employer. This is because if an employee is paying for the benefit (such as a group life insurance policy), it is generally taxable. However, if it is paid by the employer, the employee generally is not taxed. This article by the US Department of Labor has some straightforward information about types of pretax benefits and what to look for.

—Michael Spelman

 

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