Summer Prepay Insurance Premium Deduction Schedule for 2018
Summer prepay insurance premiums will be deducted from March 30, May 1, and/or June 1 paychecks for the following employee groups:
- Academic (9-month) employee who will be returning to UW employment in the fall of 2018.
- Academic (9-month) employee with a summer service/summer session appointment.
Why are Summer Prepay Insurance Premiums Deducted in the Spring?
The additional summer prepay insurance premium deductions are taken to continue an employee’s insurance coverage through the summer (contract break) months. These additional premium deductions must be taken in the spring, along with regular monthly premium deductions, since insurance premiums cannot be deducted from summer service/summer session earnings.
What if an Employee’s Employment Status Changes?
If an employee’s summer 2018 or fall 2018 employment status changes after they have already had summer prepay deductions, they may receive refunds for the summer prepay deductions. If an employee will be terminating employment, and will not return in the fall, they should contact their human resources office immediately for assistance in determining their employment termination date and the date their insurance coverage will end.
Employees who anticipate that they will experience any other status change; marriage, adoption, divorce, etc., should contact their human resources office immediately so they understand the impacts to their insurance benefits.
What if an Employee does not Have Summer Prepay Insurance Premiums Deducted?
If an employee does not have summer prepay deductions taken in the spring, and then has a summer session/summer service appointment, they will be billed directly for payment of the additional premiums due to provide them with insurance coverage during the summer months. Payment must be made by the billing invoice due date to insure that insurance benefits are not canceled due to non-payment.
2018 Summer Prepay Deduction Schedule
Important: This schedule outlines premium deductions for an employee scheduled to return to fall 2018 UW employment, or who has a summer appointment and is then terminating. Most employees will have deductions taken according to this schedule. Human resources offices can assist employees whose deduction schedule may vary from the schedule below based on appointment, summer employment, fall return date, or termination date.
|Paychecks on Which Premiums will be Taken||Insurance||Premiums to be Taken|
|March 30, May 1, June 1||Health and other insurance deductions for programs in which you are enrolled.*||Regular premium deduction PLUS one summer premium deduction.|
|May 1||Income Continuation Insurance||Regular premium deduction PLUS two summer premium deductions.|
|June 1||Income Continuation Insurance||Regular premium deduction PLUS one summer premium deduction.|
*Does not include Flexible Spending Account (FSA) or Health Savings Account (HSA) deductions. These deductions are calculated based on a 9-month schedule for academic (9-month) employees so no additional premiums are taken for these programs.
*Does not include Tax-Sheltered Annuity (TSA) and Wisconsin Deferred Compensation (WDC) deductions. These deductions are based on an employee’s earnings. Since the employee will not have earnings during the summer months, there are no additional premiums taken for these programs.
*Opt-Out Incentive and Health Savings Account (HSA) employer contribution will continue to be processed during the summer months for these programs.
How Will Summer Prepay Appear on Earnings Statements?
Summer prepay 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 Insurance 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.’ Note: ‘Prebtx’ stands for before tax or pre-tax and ‘Preatx’ stands for after tax or post-tax.
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. If an employee has one extra deduction for each plan, there will be a total listed under Prebtx or Preatx on each earnings statement impacted by the additional deductions.
Important: To verify accuracy, employees should review their earnings statements to ensure that their 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 their insurance coverage.
For questions, please contact your human resources office.
Source: UW Service Center