I am sorry my wording was unclear.
Post tax dollars means that you qualify to take the percentage you paid of the premiums off the taxable amount. You should only pay taxes on the 73.22% that you did not pay for. The rest of it is insurance you paid for with post tax dollars.
Since the employer thought it might be pre-tax - if it is pre-tax, then it would mean all - 100% -of the amount received is taxable. Often, there are pre-tax deductions that don't show on the w2 at all. Your income in box 3 is less than your actual pay. For example: You are salaried at $60,000/ yr but pay for medical insurance pre-tax, your box 3 might only show $58,000. Box 1 would be the same or less.
The directions about deducting the premiums as a medical expense while itemizing applies to very few people so I did not mention that before. If for some reason you are a rare person who did itemize medical bills and itemize deductions, then you would not receive full benefit. About 95% of people take the standard deduction. Of the approximate 5% that itemize, few itemize medical expenses. Therefore, I by-passed the information assuming you are pretty normal.
A pay stub will show total earned and the deductions. The proof is in the math.
In conclusion - choose to include 100% as taxable income unless you can show it was post-tax money that paid the premium (as I would expect, since this is like a type of medical insurance).
All of this is assuming the PFML will follow suit taxed as disability insurance -as the state is expecting. There is no right answer at this point without a ruling.
I hope this helps you at least understand the options you have. Let us know if you have more questions. Best wishes!
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