Pre-Tax Premium Plan

The Pre-Tax Plan allows employees to have their medical, dental and/or vision premiums (excluding domestic partner portions of thegoddard_2001-199x300.jpg premium) deducted from their salaries before income taxes are calculated. Using the Pre-Tax method for premium payments, can reduce employee's taxable income, and through tax savings, lessen the impact of insurance cost on their take home pay.


The Pre-Tax Premium Plan is available to all employees enrolled in the Medical, Dental and Vision plans deducted through NMSU Payroll.


At the time of enrollment in medical, dental and vision plans. Once Pre-Tax is opted, it will automatically apply to medical, dental, and vision premiums. The Pre-Tax Plan remains in effect during the employee's entire employment at NMSU:
  1. unless declined during the open enrollment period, or;
  2. in response to a qualifying change in status.


  • Employee tax savings. Employees do not pay federal, (and in most cases state and local income taxes), Social Security and Medicare taxes on the Pre-Tax contribution amount. Unemployment and Worker's Compensation taxes (in some states) are based on employee's pay after Pre-Tax contributions.
  • Lower taxable income. Reduces the amount of taxable income on your W-2.
  • Reduction of NMSU Social Security and Medicare tax liability.


  • Social Security benefits may be reduced due to the lower compensation that is considered for calculating a Social Security benefit.
  • Elections may only be revoked during a plan year due to a change in status or other changes permitted under the Treasury Regulations.
Employees may want to consult with a tax advisor prior to making changes to the Pre-Tax or Post-Tax election. If you elect this benefit, you may not use your medical, dental and vision premiums as deductions when you file federal and state income tax returns.

This is a summary description of benefits available to eligible New Mexico State University employees. This information does not set a contractual commitment of benefits.NMSU reserves the right to interpret, change, modify, amend, or rescind these guidelines in whole or in part at any time without the consent of employees. If you have questions concerning benefits, please contact the Benefit Services department.

Contact Benefit Services: Benefits is a division of HR Services located at Hadley Hall, Room 17 | MSC 3HRS Ph: 575.646.8000 | Email: