Benefit Types Supported by 7shifts Payroll
Below is a reference guide to the benefit types supported by 7shifts Payroll, including definitions for each type and whether they are deducted pre-tax or post-tax.
| Benefit Type | Description | Deduction Type |
|---|---|---|
| 125_medical | A benefit belonging to a Section 125 Cafeteria plan that helps employees pay for qualified expenses related to medical care. | Pre-tax |
| 125_vision | A benefit belonging to a Section 125 Cafeteria plan that helps employees pay for qualified expenses related to vision care. | Pre-tax |
| 125_dental | A benefit belonging to a Section 125 Cafeteria plan that helps employees pay for qualified expenses related to dental care. | Pre-tax |
| 125_disability | A benefit belonging to a Section 125 Cafeteria plan that helps employees cover premiums related to disability insurance. | Pre-tax |
| 125_accident | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees cover costs for emergency treatment covering injuries. | Pre-tax |
| 125_cancer | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees cover costs for financial or emotional support when dealing with cancer. | Pre-tax |
| 125_critical_illness | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees cover costs for life-changing illnesses and health events. | Pre-tax |
| 125_hospital | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees cover expenses not covered by major medical. | Pre-tax |
| 125_life | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees cover premiums related to life insurance. | Pre-tax |
| 125_medical_other | A supplemental benefit belonging to a Section 125 Cafeteria plan that helps employees pay for qualified expenses related to medical care. | Pre-tax |
| 401k | A 401(k) plan is a tax-qualified, defined-contribution pension account that provides for pre-tax retirement savings. | Pre-tax |
| 403b | A 403(b) plan is a retirement savings plan available to qualified non-profit groups. It a tax treatment similar to a 401(k). | Pre-tax |
| 457 | The 457 plan is a non-qualified, deferred-compensation retirement plan available to employees of government and certain non-profit organizations. | Pre-tax |
| roth_401k | A Roth 401(k) plan is similar to the 401(k) plan, but where employees contribute post-tax funds and can withdraw tex free given certain criteria. | Post-tax* |
| roth_403b | A Roth 403(b) plan is similar to the 403(b) plan, but where employees contribute post-tax funds and can withdraw tax free given certain criteria. | Post-tax* |
| roth_457 | A Roth 457 plan is similar to the 457 plan, but where employees contribute post-tax funds and can withdraw tax free given certain criteria. | Post-tax* |
| fsa_medical | A medical flexible spending account (FSA) is a tax-advantaged account that allows employees to pay for eligible medical expenses. | Pre-tax |
| fsa_dependent_care | A dependent care flexible spending account (FSA) is a tax-advantaged account that allows employees to pay for dependent care expenses. | Pre-tax |
| hsa | A health savings account (HSA) is a tax-advantaged medical savings account enrolled in a high-deductible health plan. Funds accumulate and can be used to pay for qualified medical expenses without tax liabilities. Depending on the health plan, this benefit can have a contribution limit of single or family. | Pre-tax |
| simple_ira | A Savings Incentive Match plan for Employees Individual Retirement Account (Simple IRA) | Pre-tax |
| transit | The value of combined commuter highway vehicle transportation and transit passes, which are excludable from wages under Section 132(f) up to a monthly limit. | Pre-tax (up to monthly limit) |
| parking | The value of qualified parking benefits, which are excludable from wages under Section 132(f) up to a monthly limit. | Pre-tax (up to monthly limit) |
| nontaxable_fringe | Various miscellaneous fringe benefits that are excluded from an employee’s gross wages and are not subject to Federal Income Tax withholding, FICA, or FUTA taxes. | Post-tax |
| nqdc | A Non-Qualified Deferred Compensation (NQDC) plan that allows employees to postpone compensation for the purposes of deferring Federal Income Tax. *FICA and FUTA are still subject at the time of deferral. | Pre-tax* |
*Roth retirement plans (Roth 401(k), Roth 403(b), and Roth 457) are considered post-tax benefits. In 7shifts Payroll, these plans should be added under Benefits, not under Post-Tax Deductions. This ensures the correct tax treatment is applied automatically.