Premium Conversion       [Back to Previous Page]
Premium conversion allows you to have your monthly medical, dental, vision, and some AFLAC premiums deducted from your pay before taxes.  This can reduce your taxable income.  For example:

Examples
Without Premium Conversion
Gross Salary/mo	$1,500.00
Taxable Salary	1,500.00
-Income Tax	-225.00*
-Social Security (7.65%)	-114.75
After Tax Salary	1,160.25
-Health Ins. Premium	-150.00
Net Take-home Pay	$1,010.25
With Premium Conversion
Gross Salary.mo	$1,500.00
-Health Ins. Premium	-150.00
Taxable Salary	1,350.00
-Income Tax	-202.50*
-Social Security (7.65%)	-103.28
Net Take-home Pay	$1,044.22
*Assumes a 15% income-tax bracket.

Employees are eligible to participate in premium conversion with their first insurance premium.

Please note that employees who opt for premium conversion may not change insurance coverages during that calendar year unless they undergo a qualifying event (birth, death, marriage, divorce, loss of job or that of spouse, change in employment status or that of spouse, etc.).