Monthly Premium Calculation for Medical, Dental and Vision Benefits per Fringe Cap
Benefit eligible employees receive a fringe cap from the district. The fringe cap is for the employee to use towards their choice of:
- Mandatory Life Insurance
Any amount not used will go back to the District. Employees cannot use the extra amount left over from their fringe cap to pay for supplemental coverage, such as extra life insurance, long term disability, short term disability, etc. The employee is responsible for 100% of the supplemental coverage that they select.
If the employee selects plans above the Fringe Cap amount allotted to them, then it will be deducted out of their monthly check on a pre-tax basis.
Your classification, FTE and the dependents you cover on your medical plan will determine the amount of the Fringe Cap allocated. Click on your classification below to learn more about your fringe cap and how to calculate your monthly benefit premiums:
- Classified 9, 10, 11 month
- Classified 12 month hourly
- Classified 186 Day- MECP
- Classified- Exempt
- Classified Retirees
- Licensed Retirees – refer to ERI Agreement
Domestic Partner Imputed Tax Income
What is Imputed Income?
When an employee receives non-cash compensation that is considered taxable, the value of that benefit becomes imputed income to the employee. Imputed income is added to the employee’s gross (taxable) income, but is not included in the net pay because the employee has already received the benefit in some other form.
Imputed income in this instance refers to the employer paid portion of the domestic partner medical coverage. If you add a dependent to your health insurance coverage who does not qualify as a tax dependent under the Internal Revenue Code Section 152 and Notice 2010-38, the Fair Market Value (FMV) of the employer contribution toward that coverage is considered a taxable fringe benefit, subject to tax withholding. This calculated fringe benefit is known as imputed income. This fringe benefit will increase your taxable income. Therefore, your federal, State, Social Security and Medicare taxes may increase and your net pay will decrease. You are not paying taxes on the same monies twice. Your employer is just accounting for the benefit you are receiving from them as “income” to you.
If you are enrolling a domestic partner and/or domestic partner’s child(ren) on your District medical, dental or vision coverage: Please view this important information regarding your taxes.
NOTE: You must submit an Affidavit of Domestic Partnership form to HR, if you are enrolling a domestic partner or child(ren) of a domestic partner on any of your OEBB health plans. Please keep a copy of the completed form on file for OEBB Dependent Verification Audits, as the District is not responsible for supplying it upon request for OEBB Dependent Verification audits.