An Official Website of the Commonwealth of Kentucky
Yes, employers may still deduct pre-tax health insurance premiums under IRS Section 125 cafeteria plans. The law change to remove the deduction from individual income tax affects health insurance premiums paid with after-tax dollars.
The 5% tax rate is effective January 1, 2018 and thereafter; therefore, implementing the new withholding formula as soon as possible will ensure the most accurate amount of withholding for the year.
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