If anyone is familiar with PR state tax, I need to know if section 125 cafeteria plan deductions are taxable. I have one system that does and one that doesn't.
This should help.
As a side note my company has Puerto Rico set up for their own plan(separate from our US employees) and it is administered by a firm on the island. If you are trying to have a catch all plan for both US and PR employees/residents your rules may not be the same.
For Retirement that's true, we don't them on our retirement plan. But I'm interested in finding out if the health insurance deductions are taxable. Do you have a Federally non-taxable insurance plan?
Yes - we have a section 125 set up which includes 401K, medical and dental plans.
So, is it included in taxable wages for PR state tax?
If your plan set up is in compliance with the Puerto Rico rules for section 125 then it would be pretax.