[mcrnc115]

Who pays or are taxes paid on "Deductions" such as insurance, life insurance, etc. and if so how is this calculated. How is it different when this is done through a Cafeteria Plan?

Thank you

[ScottGem]

First, YOU pay any taxes on any income you make. Your employer simply withholds a certain percent (based on federal tax tables) of your taxable income against your tax liability calculated on your tax return.

Second, some benefit deductions are allowed to be taken pre-tax. This means, that they are deducted from your salary BEFORE the amount of withholding is calculated. Health insurance usually is taken pre-tax, but life insurance isn't. Your employer (or their payroll service) is responsible for determine what deductions are pre-tax, what are post tax and what should be withheld for taxes. Usually your pay stub will list pre-tax and post-tax deductions separately.