The Deduction Prepay process is used for employees who are planning an extended leave from their regular position and need insurance premiums to be paid while they are gone. In some cases, the employee is in an Academic (C-Basis) position and will be taking a Short Work Break from that position during the summer. In other cases, the employee may be taking a Leave of Absence or Short Work Break for other reasons, such as medical, professional or seasonal. Prior to the leave, money needs to be collected in advance for payment of future premiums. While the employee is on leave, the prepaid money needs to be disbursed and insurance deductions taken. Below are frequently asked questions about the process.
1. State Group Health, State Group Life (including Imputed Income), Delta Dental, VSP Vision, Individual and Family Life, Accidental Death and Dismemberment, UW Employees Inc., and Income Continuation Insurance.
2. Not taken: Flexible Spending (FSA), Health Savings (HSA), Tax Sheltered Annuity (TSA), and Wisconsin Deferred Compensation (WDC). Health Opt-Out will not have prepay deductions, and will continue to be distributed throughout the summer.
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1. Hire the employee into two Empl Records:
a) The Fall Academic Basis position should be Empl Record 0 and set as the Benefit Primary Job. The effective date of this position should be the same as that of the summer position. Manually put this position on a Short Work Break once they are hired into the position. The employee will be returned from Short Work Break during the August processing.
b) Empl Record 1 should be the summer position. Make sure you have the appropriate Expected Job End Date.
2. The employee will need to be enrolled into Benefits Billing to collect premiums for the summer coverage. Please contact your Benefit Administrator to assist with setup or refer to BN - Benefits Billing Enrollment .
1. A Deduction Prepay Administrator or Benefits Administrator will need to manually setup the employee for Deduction Prepay. BN - Deduction Prepay Process (Part I: Deduct money for insurance in anticipation of a Leave) will provide assistance in setting Deduction Prepay.
2. An HR Specialist will manually set the employee on a Short Work Break and Return from Short Work Break.
1. HR should return employee from Short Work Break on July 1, then transfer the employee into the Annual Basis job on July 1st (using effective sequence 1).
2. If this transfer was known ahead of time, only one Deduction Prepay should have been taken from the May pay period.
3. If this transfer was unknown and three Deduction Prepays were taken, June's Deduction Prepay would have disbursed. The remaining balances should disburse over the Annual Basis pay periods (July and August).
4. Always keep in mind that the Tax Class must match (Before-Tax and After-Tax) in order for prepays to disperse correctly.
1. Deduction Prepay balances will not be able to disburse appropriately, and a WiscIT should be created referencing Deduction Prepay. The UW Service Center will manually refund to zero out the Deduction Prepay balance for the employee.
1. First, always be sure to check your employee's Job Data to ensure they are correctly set up:
a) Check the employee's Position Data to ensure Empl Class, Continuity, FTE, and pay basis are correctly set.
b) Check the employee's Benefits Primary Empl Rcd to ensure it is set correctly. If it isn't, this should be updated and the employee's eligibility should be reviewed. For example, the Benefit Primary Empl Rcd is not setup on a Academic Basis Empl Rcd.
2. Check to see if the employee is enrolled into insurances.
a) If eligible for prepays, manually enter. BN - Deduction Prepay Process (Part I: Deduct money for insurance in anticipation of a Leave) will provide assistance in setting Deduction Prepay.
b) The employee should be picked up during the next month's Load process. The Prepay Factor can be increased to collect missed additional deductions at the time. BN - Deduction Prepay Process (Part I: Deduct money for insurance in anticipation of a Leave) will provide assistance in updating Deduction Prepay.
c) Employee's only enrolled into Income Continuation Insurance (ICI) will not be setup for the March payroll. The employee will be setup for 2 months of premiums from the April payroll.
3. If the employee cannot be correctly updated, a WiscIT should be created.
1. The benefit primary flag is set to another Empl Rcd. Reach out to the other institution or department for the other job to coordinate.
2. The benefit primary flag may be setup on an Annual Basis position. Reach out to the other institution or department for the other job to coordinate.
3. The employee is not enrolled into insurances. Therefore, they will not be set up for Deduction Prepay.
1. This employee has three options.
a) One option is take all three of the necessary extra deductions during the May pay period by updating the "Prepay Factor" value to 3.0 instead of 1.0. BN - Deduction Prepay Process (Part I: Deduct money for insurance in anticipation of a Leave) will provide assistance in changing Deduction Prepay.
b) Second option, if the employee cannot handle taking three additional deductions from one check, is to set the employee up in Benefits Billing for the three months. Premiums paid will be after-tax. Please contact your Benefit Administrator to assist with setup or refer to BN - Benefits Billing Enrollment .
c) Third option is a combination approach. Collect what the employee can bear, and set up the employee into Benefits Billing for the reminder. Please contact your Benefit Administrator to assist with setup or refer to BN - Benefits Billing Enrollment .
1. The UW Service Center will be reviewing all Deduction Prepays that did not load to the paychecks. The common reasons for not loading are:
a) Employee is enrolled into an insurance plan with zero cost to the employee. For example:
I. Income Continuation Category FA/AS/LI 180 Day (ICUL4) or University Staff Category 6 (ICCL6).
II. Health Insurance Opt-Out Incentive.
III. State Group Life Basic for employees over age 70.
b) Employee is no longer enrolled into the insurance plan.
c) The employee's benefit primary flag changed to another Empl Rcd.
d) The Prepay Factor had been changed to zero.
e) The employee was set up for Savings or FSA/HSA, which are not handled through Deduction Prepay.
f) The "OK to Process" had been unchecked.
1. Please verify the Deduction Prepay is setup on the paycheck by clicking "View All" in the Deduction section of the Review Paycheck.
2. You can also verify deduction for your department or campus by running the BN - Deduction Prepay Paycheck Query.
3. Please create a WiscIT if you do not see Deduction Prepay on the paycheck.
1. Please create a WiscIT and the UW Service center will ensure enough Deduction Prepay money is taken to cover insurances through the summer. This will avoid the employee having to be setup in Benefits Billing.
1. Employee more than likely will have insufficient funds to cover both Deduction Prepay and regular insurance deductions. Please uncheck the "OK to Process" for March, April, and May.
2. Employee should be setup in Benefits Billing for June, July, and August. Please contact your Benefit Administrator to assist with setup or refer to BN - Benefits Billing Enrollment .