Contact Us
Phone: 610-526-5261

Human Resources
101 N. Merion Ave.
Bryn Mawr College
Bryn Mawr, PA 19010-2899

Mapping Address:
140 Morris Ave.
Bryn Mawr, PA 19010-2899

Fax: 610-526-7478
(Recruitment, General)
Fax: 610-526-7850
(Director, Benefits, HRIS)


Flexible Benefit Plan (cont'd)

EXPLANATION OF COLLEGE BUDGET AND MEDICAL SUBSIDY

The budget is $125.00 per month (effective 11/1/2012) and is added to the pay of all Flexible Benefit Plan eligible employees. Eligible employees who do select a medical plan through the College receive an additional medical subsidy. The budget plus the additional medical subsidy equals the College contribution amounts listed on the Rate Sheet.

 

An employee who waives medical coverage receives the $125.00 budget amount as taxable income unless she or he selects other benefits, in which case the $125.00 would offset those costs. If the other benefits selected cost less than $125.00, the employee will receive the difference as taxable income (see "Taxation of Your Contributions").

 

In order to waive medical coverage, the employee must document that she or he has comprehensive medical coverage available from a source outside of the College.

Employees who select benefits that cost more than the amount of the budget plus the additional medical subsidy, will have their taxable income reduced by the amount of the difference (see "Taxation of Your Contributions").

Please refer to the http://www.brynmawr.edu/humanresources/documents/Rates_2012-2013.pdf for benefit costs.

TAXATION OF YOUR CONTRIBUTIONS

(See separate section for Domestic Partners)

Any contributions you make under the Flexible Benefit Plan are not subject to federal withholding, Pennsylvania state and Social Security (FICA) taxes for the following plans:

  • Medical Insurance
  • Dental Insurance
  • Medical Care Spending Account
  • Additional Life Insurance (Employee only-amounts up to and including $30,000)

Any contributions you make under the Flexible Benefit Plan are not subject to federal withholding and Social Security (FICA) taxes for the following plan:

  • Dependent Care Spending Account (subject to Pennsylvania state tax).

Additional Life Insurance (Spouse/domestic partners/children and amounts over $30,000) - See Additional Life Insurance section for details.

These contributions lower the amount of your income for tax purposes and, therefore, decrease your tax liability.

PLEASE NOTE: Medical and Dental insurance premiums paid by you through payroll may not be used as a tax deduction when filing Schedule A (Question 1) Form 1040.

TAXATION OF DOMESTIC PARTNERS CONTRIBUTIONS

Any contributions made by the College or the employee for domestic partners coverage are subject to federal withholding, Social Security (FICA) and Pennsylvania State Tax. The I.R.S. does not recognize domestic partners in their definition of an eligible dependent, and for this reason, domestic partners coverage is provided outside of the Flexible Benefit Plan as a fully taxable benefit. The tax benefits will remain in effect for College and employee contributions attributable to the employee's own coverage.

EXAMPLE:

Medical Plan Premium - Employee Plus Partner

$400 per month

Budget/Subsidy - Employee Plus Partner

$300 per month

Budget/Subsidy - Employee Only

$170 per month

The amount subject to federal withholding, Social Security and Pennsylvania State Tax is $230, the difference between the full premium cost for employee plus partner coverage and the budget/subsidy for single coverage.

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