We know it’s helpful to understand exactly what’s coming out of your paycheck. Here’s the short answer.
Yes, that’s very possible. Health benefits like medical, dental, and vision are commonly set up so the premium comes out of your paycheck before taxes, which lowers your taxable income. Other benefits, like disability or supplemental life insurance, can come out before or after taxes. Both depend on how your employer sets them up.
The only way to know for sure is to check with your HR team or payroll. Your pay stub also shows which deductions are before taxes and which are after taxes.
One thing to keep in mind is that coverage for someone who isn’t your spouse, child, or tax dependent, such as a domestic partner you don’t claim as a dependent, is typically paid with after-tax dollars. If you cover someone like that, please check with your HR team or a tax advisor about how it affects you. This article is for general information only and isn’t tax advice.
Nayya shows you benefit recommendations and the plan costs your employer provides, but we don’t set up your deductions or process payroll. The exact amount and tax treatment of your premiums come from your HR team and payroll, and enrollment happens in your employer’s benefits administration system.
Questions? Email support@nayya.com. We’re available Monday through Friday, 9:00 am to 5:00 pm ET.