Citi Benefits Handbook
Before-Tax Contributions
Contributions for medical (including the Health Savings Account [HSA]), dental, vision care, and spending accounts are made with before-tax dollars as long as you are receiving a paycheck. This means your contributions are deducted from your pay before federal income and employment taxes are deducted. Before-tax contributions reduce your gross salary, which lowers your taxable income and, therefore, the amount of income tax you must pay. However, these before-tax contributions may be subject to state or local income taxes in certain jurisdictions.
Citi reports the total value of the health coverage we provide on your Form W-2 Wage and Tax Statement. This is only a reporting requirement and does not change how your benefits are taxed.