Benefits » Tax Savings » TIP
Tax Savings on Insurance Premiums (TIP) program allows you to pay your monthly health plan costs (if any) on a pretax, salary-reduction basis.
Your savings are strictly on taxes. Your premium payments are deducted from your paycheck before federal, state, Social Security, and Medicare taxes are calculated, thereby reducing your taxable income.
| How TIP saves you money: an example | ||
|---|---|---|
| If your gross monthly salary is | and your employee monthly cost for family medical coverage is | then your taxable monthly salary is |
| $3,000 | $100 | $2,900 |
The tax savings are reflected in your paycheck each month, all year. Consult a tax adviser if you have questions about how TIP applies to your particular tax situation.
If you enroll in a health plan that has an employee monthly cost, enrollment in TIP is automatic. Each month, your salary is reduced by the amount of your monthly cost. This arrangement continues unless you cancel your participation in the program.
You are eligible to participate in TIP if you are enrolled in a LANS-sponsored health plan requiring an employee contribution and if you are an active LANS employee
In addition, monthly health plan costs will automatically be paid through TIP (unless you cancel participation) for the following enrolled family members:
If you would like to opt out of TIP, please contact benefits@lanl.gov.
Other questions? Contact the Lab’s Benefits Office at 505-667-1806.