The premium percentage from pay is the same for everyone so it is irrelevant. However, who pays what part of it, does change.
Let me try a super exaggerated example and see if that helps.
While working, you paid $10 in premiums for PFML
your employer paid $40.
That means you paid 20% of the premiums, the employer paid 80%.
Receive PFML of $4000.
- If the $10 premium was pre- tax money, claim $4,000 taxable.
- If the $10 was post- tax, claim 20% nontaxable, 80% taxable. So, 4,000 x 80% = $3,200 taxable.
For you specifically, you state that you paid 73.22% of the premium and it was pre-tax. Using the example above, that brings us:
Pre-tax option -100% taxable
Post-tax option - 73.22% not taxable x $4,000 example =$2928.80 exempt from tax. This leaves $1,071.20, round down to $1,071 taxable.
[Edit 4/13/2023 11:40 AM PST @NaySao I switched my pre-tax and post-tax, sorry!]
I hope the mud is starting to clear. It is a complicated area and you are doing great and asking good questions and clarifying information.
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