What designates an IRS “Change in Status”?

by | Sep 13, 2021

  • Change in legal marital status (marriage, death of spouse, divorce, legal separation, annulment)
  • Change in number of tax dependents (birth, death of dependent, adoption or placement for adoption)
  • Change in dependent’s eligibility
  • Change in employment status of employee, spouse or dependents
  • Other changes that may permit an election change under the Dependent Care FSA are:
    • Change of dependent care provider
    • Change of rate charged by unrelated dependent care provider
    • Child attaining age 13
  • Election changes must be consistent with the event. If you experience a Change in Status, please review your Summary Plan Description, as it will provide you with important information on the deadline for reporting this event.

What is “pre-tax”?

by | Sep 13, 2021

When you participate in a payroll deduction program through your employer, deductions can be taken from your payroll before calculating your taxable federal income, FICA (Social Security and Medicare) tax and for most states, taxable state income. By taking deductions pre-tax, you reduce the dollars on which you are taxed and, as a result, reduce your total tax bill.