Benefits - Summer Prepay Deductions
March 10, 2014
Academic (9 month) or Annual (12 month) employees, paid monthly, who have a contract that does not include work for one or more summer months will have multiple benefit deductions taken from their earnings during the Spring Semester to continue insurance coverage through the summer months. Employees must be expected to return for the fall semester or must continue employment in a summer service/summer session appointment to have benefits coverage continue during the summer contract break. These extra deductions are referred to as “Summer Prepay†deductions. Summer Prepay deductions are taken along with the regular monthly insurance deductions on the April 1, May 1 and May 30 paychecks.
Insurance premiums cannot be taken from summer service or summer session appointment earnings. If an employee is working Summer Session(s) or Summer Service the insurance premium deductions will have to be taken prior to this appointment through the Summer Prepay program or must be paid through direct payment by the employee.
Each division/department benefits office at each institution will determine employee's eligibility for Summer Prepay deductions. As an Academic year employee, you need to let them know if you have a summer service/summer session appointment and/or plan on returning in the fall semester to either your current or different department/institution. If you are an annual basis (12 month) employee, and have a contractual break in your primary job during one or more summer months, contact your institution's payroll and benefits office ASAP to set up summer prepay deductions. The number of benefit deductions and how these deductions appear on your earnings statement will be based on your individual situation.
Summer prepay deductions will appear as a lump sum amount on earnings statements. All deductions taken pre-tax (most medical-related premiums and a portion of State Group Life premiums) will be added together under the name “Prebtx†and all deductions taken post-tax (most life insurance premiums) will be added together under the name “Preatxâ€. Regular benefit deductions for the month will continue to be listed under the plan name. For example, if you carry family Dean Health Insurance and Single VSP Insurance, you will see a $219 deduction under Dean Health Plan and a $6.35 deduction under Vision Service Plan (VSP). These deductions are typically taken on a pre-tax basis. If you have one extra deduction for each plan, there will be a total of $225.35 ($219.00 + $6.35) listed under Prebtx on each earnings statement impacted by the additional deductions.
If you have questions, please contact your institution's payroll and benefits office.
Source: UW Service Center
Categories: Payroll