The current setup is for a benefit plan to be set up as pre-tax or post-tax. There is no option for the employee to change this when selecting the plan. There are a couple of instances where an employee may want to change the default option. For example:
1. Long-term disability: Employer may wish for the default to be post-tax (making the benefit non-taxable), but employee has option to choose pre-tax so no extra money comes out of their paycheck (or vice-versa).
2. Medical, dental, vision - when dependents are involved. When an employee's spouse is also employed, their open enrollment periods may be out of sync. By electing to add a dependent and have the employee share of the premium deducted post-tax, it allows the employee to drop the dependent mid-plan year and still remain fully compliant with IRS rules.
Increased flexibility with pre-tax and post-tax is on our high-priority feature list. Stay tuned.
In the meantime, one option would be to create two plans, one named Pre-Tax and one named Post-Tax and an employee could choose based on the plan name.
At this time the rate section at the bottom of Benefit Election screen will only show the tax-type based on the initial plan that was set up. Instructions can be entered to address employee confusion. The Election Summary does display the appropriate tax-type.
An additional consideration if using this option is that two plans with the same plan type should not be made "Required Enrollment." In the case of company-paid LTD, employees may waive coverage when they should not.