HR Fast Facts: What Does a Pre-Tax Medical Premium Mean on a Pay Stub?
Employees can get their health insurance premiums deducted from their paycheck before income taxes or payroll taxes are withheld and then paid to their health insurance carrier.
A pre-tax medical premium is the amount an employer deducts from an employee’s paycheck for the employee to pay for medical insurance coverage. This amount is taken out of their gross pay before taxes.
