Collecting Employee-Paid Medical Premiums

Summary

College employees are required to pay a portion of their monthly medical insurance premium.

Procedures

 College employees are required to pay a portion of their monthly medical insurance premium.

Based upon the type of coverage, each employee will make a monthly premium contribution. The rates and employee contribution are available on the Human Resources website.>

The monthly premiums will be withheld via payroll deduction on the first and second bi-weekly payroll date of each month. The payroll deductions for medical insurance premiums will be excluded from tax withholding and reporting for federal, state and city income taxes, as well as FICA (social security) and Medicare taxes. Such payroll deductions are allowable exclusions because they will automatically be included under the Pre-tax Premium Account of the College's Flexible Spending Plan.

There may be situations in which an employee's share of the monthly premium cannot be collected via payroll deduction.  Examples of this situation would be an unpaid sick leave, long-term disability, family medical leave or an unpaid leave of absence.  Tax law requires that the premium be collected via payroll deduction in order to receive pre-tax treatment.  Therefore, if possible 100% of the monthly premium will be pulled from the first bi-weekly payroll of the month.  If that is not an option, the employee will be invoiced on an after-tax basis.

Employees contracted to work less than 52 weeks will be invoiced on an after-tax basis during the months they are not scheduled to work to remain enrolled in the medical insurance benefit.

Any questions regarding these procedures should be directed to the Human Resources Office at extension 9106.

Participation
All regular full-time employees

Revision/review dates
6/16, 3/20