Health Insurance Premium — Payroll Definition

Health Insurance Premium paystub meaning: Your share of the monthly health insurance cost, usually deducted pre-tax. Codes: MED / DENTAL / VISION.

Your share of the monthly health insurance cost, usually deducted pre-tax.

Health insurance premiums are the monthly cost of your medical coverage, shared between you and your employer. Most employer-sponsored plans deduct your share pre-tax through a Section 125 cafeteria plan, which reduces your taxable income. The average employee contribution for single coverage is about $130/month; family coverage averages about $550/month. Common codes on your paystub include MED, DENTAL, VISION, or the specific plan name.

A deduction can be pre-tax, post-tax, voluntary, or required. Its label alone does not establish how it affects taxable wages, so check the plan document, employee election, payroll policy, and year-to-date amount.

When this term appears on a statement, read its label, current amount, year-to-date amount, pay-period context, and any adjacent rate or hours together. Resolve a mismatch with the original issuer or the cited authority rather than changing a record to force a preferred result.