What insurance benefit deduction payment options are available to... »

 8) What insurance benefit deduction payment options are available to an employee who has had their 9 month contract extended through the summer and will now be working a full year?

The ideal situation is that the employee knows about the summer appointment before their May paycheck is calculated. In that case, simply change their deduct code to a '2'.

If during the school year their code was a '1', then it must be changed to a '2' before their May paycheck is calculated.

If their deduct code was a '3', then it may be changed to a '2' anytime before May month-end processing.

For those employees who find out about a summer appointment after the May month end, the best and most highly recommended course of action is to leave the deduction code as it was (either '1' or '3') for the remainder of the summer. If their deduct code is a '3', they will be billed for their premiums. If their deduct code is a '1', then their premiums were deducted on a pre-tax basis.

Any changes to the deduction codes after May month-end will cause the employee’s records to be out of synchronization with each other. If it is necessary to adjust their billing status for the summer appointment, then the schedule below will need to be followed.

If the employee received an appointment for the whole summer:

Before the first June pay calculation,
change their deduct code(s) to a '2',
change the premium due dates to June 1,
delete all of the summer GIP sources, and
do not send their June bill if it was printed

If the employee receives an appointment for the first summer semester only:

After May month end, but before the first June Pay calculation,
change their deduct code(s) to a '2',
change the premium due dates to June 1,
delete their June and July SGIP sources, and
do not send their June bill if it was printed

AND...

Before the July insurance billing process,
manually request a bill for August premiums,
change their deduct code(s) to a '2' and
delete their July and August SGIP sources

This page was last updated on 06/11/2010 17:10:48