While the company pays the majority of the cost of your health care coverage, you share in the cost of your medical, dental and vision benefits. Your contributions depend on the plan and coverage level you choose, your annual pay and, in some cases, your employment category.
For most employees, annual pay is defined as base salary. For sales employees, annual pay is defined as base pay plus sales commissions and sales bonuses paid in the previous calendar year. For short-hour employees, annual pay is defined as the product of the hourly rate times 1,820 (based on a 35 hour week).
Your contributions for medical, dental and vision benefits are made on a pre-tax basis, as are any contributions you make to the Health Care and/or Dependent Day Care FSAs. As a result, the money used to pay for these benefits reduces your net cost by lowering your taxable income. All other contributions you make toward insurance benefits (for example, if you elect supplemental life or accident insurance) are on an after-tax basis.