Summer Prepay Deductions: Insurance Premium Deduction Schedule
March 16, 2015
Academic (9-month) employees, who will be returning to UW employment in the fall of 2015, and academic (12-month) employees, who have a contract that does not include work for one or more summer months, will have additional insurance premiums deducted from April 1, May 1 and/or June 1 paychecks to continue their insurance coverage through the summer months. These additional insurance premiums, taken along with the regular monthly insurance deductions, are referred to as ‘summer prepay deductions.’
Employees must be expected to return for the fall semester, or must continue employment in a summer service/summer session appointment to have insurance coverage continue during the summer contract break. 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 via summer prepay deductions, or must be paid through direct payment by the employee.
If an employee’s anticipated fall 2015 employment status changes after additional insurance premiums have already been deducted, refunds may be issued for these additional deductions. Employees who will be terminating employment, and will not return in the fall, should contact their HR/Benefits office immediately for assistance in determining employment termination date and the date insurance coverage will end.
Employees who anticipate other status changes; marriage, adoption, divorce, etc., should contact their Benefits office immediately about the impact to insurance benefits.
IMPORTANT: The chart below illustrates insurance premiums deducted for an employee scheduled to return to UW employment in the fall of 2015, who or has a summer appointment and is then terminating. Most employees will have deductions taken according to the chart below. HR/Benefits offices can assist employees whose deduction schedule may vary from the schedule below based on appointment, summer employment, fall return date, or end date.
| Insurance | Premiums to be Taken | Paychecks on which Premiums will be Taken |
|---|---|---|
|
Health and other insurance deductions.* |
Regular premium deduction PLUS one summer premium deduction. |
April 1, May 1, June 1 |
|
Income Continuation Insurance |
Regular premium deduction PLUS two summer premium deductions. |
May 1 |
|
Income Continuation Insurance |
Regular premium deduction PLUS one summer premium deduction. |
June 1 |
*Does not include Flexible Spending Account (FSA), Tax-Sheltered Annuity (TSA) and Wisconsin Deferred Compensation (WDC). There are no additional premiums taken for these programs.
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 ‘Preatx.’
Regular benefit deductions for the month will continue to be listed under the plan name. These deductions are typically taken on a pre-tax basis. For employees who have one extra deduction for each plan, there will be a total listed under Prebtx on each earnings statement impacted by the additional deductions. NOTE: ‘Prebtx’ stands for before tax or pre-tax and ‘Preatx’ stands for after tax or post-tax.
IMPORTANT: To verify accuracy, employees should review their earnings statements to ensure that insurance deductions are accurate for their situation. If insurance premiums are not collected through the summer prepay deductions process, employees will be billed for premiums. In this case, employees must remit timely premium payments to continue insurance coverage.
Employees should contact their campus Benefits Office with questions.Source: UW Service Center
Categories: Payroll