Pre-tax Considerations

Pre-tax Considerations

100% of your eBenefits contributions can be paid pre-tax.   All eBenefits plans exceed the requirements employers/employees are under to meet Penalty A of the ACA. All plans are Section 125 self-funded plans. 

For Sedera here are the allowable pre-tax amounts:
  1. Employee Only - $55
  2. Employee + Spouse - $100
  3. Employee + Children - $100
  4. Employee + Family - $150
The remaining balance of your Sedera payment must be considered as post-tax.
The cost of Membership in the Sedera Medical Cost Sharing Community is referred to as the Monthly Member Contribution and is broken into two components:
  1.  the Member Services Contribution and
  2. the Medical Cost Sharing Contribution.

The Tobacco Surcharges, if applicable, are treated the same as the Medical Cost Sharing Contribution.

Member Services Contribution
The Member Services portion of your Monthly Member Contribution is used to pay for administrative services related to medical cost sharing. It may qualify for a Fringe Benefit Exclusion under your Section 125 plan. Excluded Fringe Benefits are generally not subject to federal income tax withholding, Social Security, Medicare, federal unemployment (FUTA) tax, or Railroad Retirement Tax Act (RRTA) taxes and aren't reported on Form W-2.

Medical Cost Sharing Contribution
Medical Cost Sharing Contributions are funds that are used for the sharing of medical needs within the Sedera Medical Cost Sharing Community. Medical Cost Sharing is not insurance
and generally does not qualify for a Fringe Benefit Exclusion.

Liberty RX 
If you have Members that elect to participate in this optional discount prescription program, it may qualify for a Fringe Benefit Exclusion under a Section 125 plan.

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