HR, Payroll and Benefits News

Summer Prepay Deductions: Continuing Your Insurance Coverage During the Summer Months
July 13, 2016

What are Summer Prepay Deductions?                                                                            

If you are a 9-month employee who will be returning to UW employment in the fall of 2016, or a 12-month employee who has a contract that does not include work for one or more summer months, then you had additional insurance premiums deducted from your April 1, April 29 and/or June 1 paychecks to continue your insurance coverage through the summer months.  These additional insurance premiums, taken along with your regular monthly insurance deductions, are referred to as ‘summer prepay deductions.’

You 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. If you did not have prepayments taken and are returning in the fall, contact your benefits office immediately. If insurance premiums are not collected through the summer prepay deductions process, you will be billed for premiums. In this case, you must remit timely premium payments to continue insurance coverage.

Verifying Your Summer Prepay Deductions

Check your spring earnings statements to verify if you had summer prepay deductions taken from your paychecks.  Summer prepay deductions appear as a lump sum with all pre-tax deductions added together and identified as  ‘Prebtx’ and all post-tax deductions added together under ‘Preatx.’  Prebtx stands for before tax or pre-tax and ‘Preatx’ stands for after tax or post-tax.

In the fall, your regular insurance premium deductions will resume as payroll deductions starting with your October 1 paycheck.

What Happens if You Have a ‘Status Change’ During the Summer?

Are you getting married this summer? Adopting a baby? Terminating UW employment? Employees who anticipate any status change during the summer should contact their Benefits office immediately about the impact to their insurance benefits.

For example, if you are getting married and need to change from single to family health insurance coverage, you should complete a new health insurance application within 30 days of the date of your marriage. Your new spouse (and family) will be covered as of the date of the marriage.  The new rate will be deducted from your prepayments according to the new level of coverage, and you may have to pay an additional portion of the premium if the coverage increases.

If your anticipated fall 2016 employment status changes after summer prepay deductions have already been taken, refunds may be issued for these additional deductions. Employees who will be terminating employment, and will not return in the fall, should contact their Benefits office immediately for assistance in determining employment termination date and the date insurance coverage will end.

Questions

If you have questions, please contact your campus Benefits Office.

Source: UW Service Center
Categories: Payroll