Is Health Insurance Subject To FICA Taxes? 
Individual health insurance policies are of course payed with post tax dollars . Group plans can be structured by the employer so that funds are not subject to payroll taxes . This is done through setting up a section 125 payroll redirection . With a section 125 the employer can deduct the premiums from the employers wages before tax and submit those funds directly to the insurance company on behalf of the individual . With this type of set up both the employer and employee will avoid FICA and FUTA taxes on the premiums . 