BNY Mellon pays the full cost of some of your benefits. These include:

You and BNY Mellon share the cost of some of your other benefit options, such as your medical and dental coverage. You pay the full cost of other benefits—vision, life (supplemental, spouse/domestic partner, child) insurance, supplemental AD&D insurance, supplemental long-term disability insurance, and flex vacation.

Your share of the cost of coverage will be made through convenient payroll deductions, unless you are in a job classification that requires you to make benefits payments directly to BNY Mellon. All of your contributions, except for spouse/domestic partner and child life insurance premiums, are deducted from your pay before taxes are deducted (unless your dependent does not meet tax dependents requirements). By contributing on a pre-tax basis, you lower your current taxable income.

For example, assume you earn $45,000 a year and contribute $1,000 toward the cost of your benefits. You pay no federal income, Social Security or Medicare taxes on that $1,000. In this case, your taxable income for the year, before subtracting your personal exemptions and your standard deduction, would be $44,000 instead of $45,000. That means you pay about $176* less in taxes for the year than if you spent that $1,000 elsewhere.

For federal tax purposes, the full value of the health care benefits provided to your dependents (e.g., your domestic partner and his or her children) is taxable, unless such dependents qualify as your federal tax dependent(s) for health plan purposes or you claim a federal tax exemption for them.