Pre-Tax Insurance Premiums

Employees pay lower income taxes when they enroll in TLC-sponsored medical, dental, vision, and life insurance. Premiums are automatically deducted on a pre-tax basis, which lowers the employee’s taxable income—creating tax savings to the employee and increasing take-home pay compared to paying the premiums after-tax.

Pre-Tax Health Care

Employees can increase their take-home pay when they use pre-tax dollars to pay for out-of-pocket health expenses they would otherwise have to pay with after-tax dollars. The employee elects a certain amount each year to be deducted from their pay on a pre-tax basis, and that money is set aside in a health care flexible spending account. The employee can then get reimbursed for health care expenses he or she would have to pay anyway during the year—this could be amounts subject to copays and deductibles in a health insurance plan, prescription costs, or even dental or vision expenses.

Pre-Tax Dependent Care

Employees can increase their take-home pay when they use pre-tax dollars to pay for out-of-pocket dependent care expenses they would otherwise have to pay with after-tax dollars. The employee elects a certain amount each year to be deducted from their pay on a pre-tax basis, and that money is set aside in a dependent care flexible spending account. The employee can then get reimbursed for dependent care expenses he or she would have to pay anyway during the year—this could be day care for children under 13 while the parents are at work or adult day care in certain circumstances.


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