HR, Payroll and Benefits News

Updated ICI Premiums Effective Feb. 1, 2022

Income Continuation Insurance (ICI) premiums are reviewed annually, and any updates are effective February 1. Premium changes for 2022 will be reflected on the February 24, 2022, paycheck.

If you are currently enrolled in the ICI program, visit the ICI Premium Notice web page for your personalized updated premium amount. Current enrollees were sent an email January 25 with a link to this web page.

Several factors determine your premium amount:

Your Earnings

  • For Faculty/Academic Staff/Limited Appointees: ICI premium* is based on your 2021 eligible earnings and the elimination period you elected when you enrolled.
  • For University Staff: ICI premium* is based on your 2021 eligible earnings and unused sick leave balance as of December 18, 2021.

    *If you were placed on an intermittent furlough, temporary work reduction, consecutive day furlough or were on an unpaid leave of absence during 2021, review ICI Premium Notice web page for information on how your premium may be affected.

Premium Rates

For 2022 the ICI premium rates will decrease by 50%.

Deferred Enrollment Period

The ICI annual premium update does not reflect any enrollment made during the ICI Deferred Enrollment period which began in January and ends March 1, 2022. Employees who are eligible to participate in the ICI Deferred Enrollment period received notification about their opportunity via an email sent January 15.

ICI Benefits

ICI provides replacement income if you are unable to work due to a short or long-term disability.

  • Standard ICI coverage provides you with 75% of your gross salary up to a maximum of $4,000 per month (75% of $64,000). Standard ICI coverage is on annual earnings up to $64,000.
  • Supplemental ICI coverage provides 75% of your gross salary to a maximum of $7,500 per month (75% of $120,000). Supplemental ICI coverage is on annual earnings up to $120,000.

More Information

For ICI plan information visit the UW System Employee Benefits ICI web page. After reviewing the web page, if you have additional questions, contact your institution benefits contact.

Source: UW System Human Resources

W-2 Forms Now Available Online

Electronic 2021 W-2 Forms (Wage and Tax Statements) are now available in the MyUW portal for UW System institutions or for UW-Madison. Paper copies are mailed to all employees except those who chose to receive an electronic only W-2 by January 13, 2022. Employees will receive a paper copy of the W-2 Form via U.S. mail postmarked by January 31, 2022.

Instructions to View/Print 2021 W-2 Form.

Availability of Other Tax Forms
Some employees will receive additional tax forms from UW System. These additional forms are not applicable to all employees. Examples include:

  • Form 1095-C - This form includes information about the health insurance coverage offered to you by your University or through the UW System. A separate communication will be sent to employees who will receive this form.
  • The Fellowship Letter – This form shows amounts paid through the University payroll as a Fellowship/Scholarship, which are not considered to be wages by the IRS and are not subject to Social Security or Medicare withholding. The form is typically available in February.
  • The 1042-S Forms – This form includes a foreign person’s income from a U.S. source which is subject to tax withholding. The form is typically available in the MyUW portal for UW System institutions or for UW-Madison in March. Employees who have chosen electronic delivery through the Glacier System may have access to their forms earlier. Others will have their form mailed to their home address. Instructions to View/Print 1042-S Form and Fellowship Letter.

Resources
Visit Tax Statement Help for resources regarding the various tax forms.

Filing Taxes
Employees should use their W-2 Form, not their final 2021 earnings statement, to file taxes.

Some employees have had adjustments to their 2021 taxable earnings since the last 2021 payroll was paid and may have an additional earnings statement generated reflecting these adjustments. These adjustments will already be reflected on the W-2 Form that the employee receives.

The IRS will begin accepting and processing 2021 tax year returns on January 31, 2022. Employees may want to file their return as soon as all tax forms are received to minimize the chance of a fraudulent return being processed using their Social Security number, or Individual Taxpayer Identification number. More information is available on the IRS website.

If you have questions, contact your Payroll office.

Source: UW-Shared Services, Service Operations

ICI Deferred Enrollment through March 1, 2022

You may be eligible to participate in the annual Income Continuation Insurance (ICI) Deferred Enrollment period now through March 1, 2022. Eligible employees were notified by email on January 15.

ICI provides replacement income if you are unable to work due to a short or long-term disability.

Eligibility

  • If you are currently enrolled in the ICI plan and have Standard ICI coverage, you may be eligible to enroll in Supplemental ICI coverage during the ICI Deferred Enrollment period.
  • If you are not currently enrolled in the ICI plan, you may be eligible to enroll during the ICI Deferred Enrollment period. This is the only time during the year you may enroll in the ICI plan without providing evidence of insurability.

Visit your ICI employee web page to view your ICI eligibility and for personalized data to assist you in making an enrollment decision.

How are ICI Coverage and Premiums Determined?

ICI coverage and premiums are based in part on your eligible earnings*. For Faculty, Academic Staff and Limited Appointees, the elimination period you elect when you enrolled is an additional factor. For University Staff employees your sick leave balance* is also a factor.

*If you were placed on an intermittent furlough, temporary work reduction, consecutive day furlough or were on an unpaid leave of absence during 2021, review the ICI employee web page for information on how your premium may be affected.

ICI Benefits

Standard ICI coverage provides you with 75% of your gross salary up to a maximum of $4,000 per month (75% of $64,000). Standard ICI coverage is on annual earnings up to $64,000.

Supplemental ICI coverage provides 75% of your gross salary to a maximum of $7,500 per month (75% of $120,000). Supplemental ICI coverage is on annual earnings up to $120,000.

For More Information or to Enroll

Review the UW System Employee Benefits ICI web page.

To enroll during the ICI Deferred Enrollment period, submit an application to your institution benefits contact by 4:30 p.m. on Monday, March 1, 2022.

If you have questions after reviewing the available information, contact your institution benefits contact.

Source: UW System Human Resources

2022 Benefit Deductions and Contributions

For most employees, benefit deductions and contributions will change in 2022.

Health, Dental, Vision, and Accident Insurance
Premiums for most health and dental insurance plans will increase slightly for 2022. Vision and Accident Insurance premiums will remain the same. The change to the premiums will start on your December 16, 2021 paycheck.

Flexible Spending Account (FSA), Health Savings Account (HSA), and Parking & Transit Accounts
If you enrolled in an FSA, HSA, or Parking & Transit Account for 2022, your first contribution will start on your January 13, 2022 paycheck.

Individual & Family Life Insurance and UW Employees, Inc. Life Insurance
If you will be in a new premium age category as of January 1, 2022, or if you changed your coverage level during the Annual Increase Option period for the Individual & Family Life Insurance, your new premium will start on your December 16, 2021 paycheck.

University Insurance Association (UIA) Life Insurance
If you are enrolled in the UIA Life Insurance Plan, the annual premium of $24 will be deducted from your December 16, 2021 paycheck.

Accidental Death & Dismemberment (AD&D) Insurance
If you enrolled, changed coverage levels, or cancelled coverage through the MyUW portal during the Annual Benefits Enrollment period, your 2022 premium will start on your December 16, 2021 paycheck.

Income Continuation Insurance (ICI)
The 2022 ICI premium rate changes will be effective on your February 24, 2022 paycheck. Additional information will be communicated in January.

Wisconsin Retirement System (WRS) Contributions
The WRS employee and employer contributions for 2022 will decrease slightly for most employees. 2022 contributions will start on your January 13, 2022 paycheck.

UW 403(b) Supplemental Retirement Program (SRP)
Your January 13, 2022 paycheck will be the first paycheck with contributions going to the recordkeeper you selected during Annual Benefits Enrollment (or defaulted to if you took no action).

For additional information, review the Benefit Premiums web page.

Source: UW System Human Resources

Integrity Hotline for Faculty, Staff, Students

The UW System Integrity Hotline is available for all students, faculty, and staff to report a concern on a wide variety of issues. It was formerly known as the Waste, Fraud, and Abuse Hotline since its launch in 2015.

Reports can be made on more than 40 categories of issues, including:

  • Employee, student, and customer service relations.
  • Discrimination, sexual assault, and sexual harassment.
  • Retaliation against whistleblowers.
  • Financial issues like accounting irregularities, records falsification, grant mismanagement, wage/hour issues, or theft of cash or goods/services.
  • Academic issues like research misconduct.
  • Operational and environmental issues, like data privacy violations, product quality, and safety issues.
  • General issues, like fraud, conflict of interest, animal care, and athletics.

You are always encouraged to talk to your supervisor, a manager, or someone in Human Resources if you have a concern about misconduct, abuse, fraud, or illegal activity. For more information, see UW System’s Reporting Concerns webpage. However, you may also use the Integrity Hotline by calling 855-827-4950 or contacting Navex Global online at secure.ethicspoint.com. You may remain anonymous.

Source: UW System

Deadlines for Health Care FSAs

To be reimbursed for out-of-pocket health care expenses from your 2021 Health Care Flexible Spending Account (FSA), you must incur eligible expenses by December 31, 2021. You must also submit and substantiate your expenses by March 31, 2022.

A Health Care FSA allows you to be reimbursed for certain out-of-pocket expenses with tax-free dollars. Since these are spending accounts, the money is intended to be spent. Eligible expenses include:

  • Medical (post-deductible only if you are also enrolled in the HDHP and HSA)
  • Dental
  • Vision 

How to Pay for Eligible Expenses

In most situations, you can use your payment card from the FSA administrator, Optum Financial, at the point of sale or service. Otherwise, you may pay for your eligible expenses with a personal credit card, a debit card, cash, or check.

How to Submit Eligible Expenses for Reimbursement

The most efficient way to submit your eligible expenses for reimbursement is electronically by using the Optum Financial mobile app, or website.

Remember to include the required IRS supporting documentation with your submission. Although, Optum Financial will contact you directly when additional information is needed. Failure to provide documentation when requested may require repayment. This is done by deducting money from your paycheck on an after-tax basis. Substantiate your claims by December 31, 2021, to avoid the repayment process.

Health Care FSA Carryover Reminder

Up to $550 of unused funds in a Health Care FSA will carry over from 2021 to 2022. This applies even if you did not enroll in a Health Care FSA for 2022. Unused funds greater than $550 will be forfeited.

For questions about your claims, eligible expenses, or your payment card, contact Optum Financial at (833) 881-8158.
For general information, review the UW System Employee Benefits FSA web page.

Source: UW System Human Resources

Reminder: 2022 Benefit Changes

Reminders about the benefit plan changes for 2022.

Health Insurance

There are several coverage enhancements to the State Group Health insurance program effective January 1, 2022:

  • Coverage has been added for medically necessary corrective jaw surgery.
  • The timeframe requirement has been removed for extractions, and dental repairs due to accidents.
  • The age for colonoscopy screenings to begin was reduced to age 45.

Annual deductibles and most out-of-pocket maximums remain the same for 2022. The accumulators for the deductibles and out-of-pocket maximums will reset on January 1, 2022.

If you are a crafts worker, effective January 1, 2022, you are eligible for:

  • The employer contribution towards your health insurance premium (if enrolled).
  • The employer contribution to your health savings account (if enrolled).
  • The opt-out incentive (if you do not need health insurance coverage through the UW System).

If you changed your health insurance plan carrier, or you are newly enrolled, contact your health insurance plan carrier to assign a primary care physician. Your health insurance plan carrier will assist you with designating one, if necessary.

Dental Insurance

Coverage for composite/resign fillings for the back teeth has been added to the Uniform and Preventive Dental Insurance plans. Annual deductibles and benefit maximums will remain the same for 2022. The accumulators for the deductibles and benefit maximums will reset on January 1, 2022.

Accident Insurance

The Accident Insurance plan will continue to provide cash payment to you in the event of an injury due to an accident. The cash benefit payment amounts for most covered injuries due to an accident have increased. Outpatient rehabilitation therapy was added as a service eligible for a cash benefit payment, when necessary to treat an injury due to an accident.

Health Savings Accounts

The annual maximum contribution amounts increased to $3,650 for single health insurance coverage, and $7,300 for family health insurance coverage.

Healthcare and Dependent Day Care Flexible Spending Accounts

For the Healthcare Flexible Spending Accounts (FSAs), the annual maximum contribution is $2,750, and the carryover limit is $550. For the Dependent Da Care FSA, the annual maximum contribution is up to $5,000 per household, based on tax filing status. There is no carryover for the Dependent Day Care FSA.

Review the UW System Employee Benefits website for additional information.

 

Source: UW System Human Resources

2022 Benefits ID Cards

If you enrolled or made changes to your benefits during the Annual Benefits Enrollment (ABE) period (Sept. 27 – Oct. 22, 2021), you may receive new ID cards.

Review your ID cards for accuracy. If you discover errors or if you do not receive your ID cards by mid-January, contact the plan directly to request new ID cards. Your institution benefits contact is not able to request ID cards on your behalf.

See below for ID card information specific to each benefit plan.

STATE GROUP HEALTH INSURANCE

If you enrolled, or made changes to your dependents, health plan design, or health insurance carrier, you should receive a new ID card by early January. Present your new ID card at appointments after January 1, 2022.

You may obtain an ID card online through your health insurance plan carrier’s website.

PHARMACY BENEFITS

If you are newly enrolled in health insurance for 2022, or added/removed dependents, you will receive an ID card from Navitus, the pharmacy benefits manager. You should receive your ID card by early January. To access your ID card online, prior to receiving one through the mail, go to www.navitus.com.

DENTAL INSURANCE

If you are newly enrolled in Uniform Dental, Preventive Dental, or Supplemental Dental (Select or Select Plus), you should receive an ID card from Delta Dental by early January. If you are currently enrolled, you will only receive a new ID card if your level of coverage changed (for example: from single to family).

You may obtain an ID card online at www.deltadentalwi.com/state-of-wi.

VISION INSURANCE

If you are newly enrolled in vision insurance for 2022, you will receive an ID card from the vision insurance administrator, DeltaVision/EyeMed by early January.

You may obtain an ID card online at www.deltadentalwi.com/state-of-wi.

Note: You may not need to show your ID card at your vision appointment, as most vision providers will be able to verify that you have coverage through DeltaVision/EyeMed.

ACCIDENT INSURANCE

Securian, the Accident Insurance plan administrator, does not issue ID cards. Review the Accident Insurance web page for information about how to file claims. Most claims must be filed within a specific timeframe shortly following an accident.

FLEXIBLE SPENDING ACCOUNTS (FSA) AND HEALTH SAVINGS ACCOUNTS (HSA)

If you are enrolled in a Health Care FSA or an HSA for 2021, and already have a payment card from Optum Financial (formerly ConnectYourCare), you may continue to use your current payment card until the expiration date. Shortly prior to the expiration date, Optum Financial will automatically issue you a new payment card.

If you were not enrolled in a Health Care FSA or an HSA in 2021; but enrolled for 2022, you should receive a payment card from Optum Financial by early January.

If you have money in multiple accounts (FSA, HSA, Parking), the same payment card should be used for all accounts.

PARKING AND TRANSIT ACCOUNTS

If you are enrolled in a Parking Account for 2022, and for 2021 were:

  • Enrolled in a Health Care FSA or an HSA, you may use your current payment card for all eligible Health Care FSA, HSA, and parking expenses.
  • Not enrolled in a Health Care FSA or an HSA, Optum Financial will send you a payment card by early January to use for your eligible parking expenses.

The Transit Account does not have a payment card. If you are enrolled in a Transit Account, submit your claims manually for reimbursement (through the Optum Financial mobile app or portal, or by completing a paper claim form).

For additional information about each benefit plan, review the UW System Employee Benefits website.

Source: UW System Human Resources

University Insurance Association (UIA) Life Insurance - Annual Premium Deduction

If you have University Insurance Association (UIA) Life Insurance, the annual premium of $24 will be deducted from your biweekly paycheck dated December 16, 2021. The annual premium was previously deducted in October. Due to the change in the Plan Year starting date from October 1 to January 1, the annual premium will be deducted from pay received during December going forward.

Participation in the UIA Life Insurance plan is a condition of employment for UW System Faculty, Academic Staff, Limited Appointees. Eligible employees must requalify for coverage each year. Employees who meet the minimum monthly salary threshold will be automatically enrolled in the plan effective January 1 with coverage through December 31.

For 2022, the minimum monthly salary threshold is $2,896. Eligible employees who meet the minimum salary threshold will be enrolled in the plan January 1, 2022 with coverage through December 31, 2022.

For more information about the plan, including coverage levels and detailed eligibility requirements, visit the UIA Life Insurance web page.

Source: UW System Human Resource

2022 Increase: Retirement Plan Contribution Limits

The IRS recently announced an increase in the 2022 retirement plan contribution limits. The limits apply to the UW 403(b) Supplemental Retirement Program (SRP) and the Wisconsin Deferred Compensation (WDC) 457 Program.

Contributions

In 2022, employees may contribute a basic maximum of $20,500  to the UW 403(b) SRP (an increase from $19,500 in 2021). Employees age 50 and over can contribute an additional $6,500 (no change from 2021 limit) for a total of $27,000. These same limits apply to WDC.

If you have 15 years or more of service with the UW System and have contributed less than an average of $5,000 per year over your UW System employment, you may have an additional "catch-up" opportunity with the UW 403(b) SRP. Contact your institution benefits contact for more information.

Both pre-tax and Roth (after-tax) contributions count towards the annual limits. Note: Individual Retirement Accounts (IRAs) are a type of retirement account separate from the UW SRP and WDC Program and have separate limits.

Change Elections and Enrolling in the 403(b) SRP
To increase (or decrease) your UW 403(b) SRP deduction:

• Login to the MyUW portal
• Launch the Benefits Information tile
• On the bottom of the screen, click on “Update 403(b) Deductions” and follow the additional instructions to make your change(s)

To enroll for the first time:
• Use the EZ Enrollment Form
• Or complete a Salary Reduction Agreement eForm and set your account up online (or paper application) with the provider(s) of your choice

For questions on the 403(b) SRP, visit the SRP web page. As a reminder there are changes effective January 1, 2022, to the 403(b) SRP. To review information on upcoming changes to the UW 403(b) SRP, see the UW 403(b) Program Enhancements web page.

WDC Program

To change your WDC contribution call the WDC office at (877) 457-9327 or access your account at the WDC website. The WDC website also has information about enrolling in the program. WDC changes must be made with Empower, the third-party WDC plan administrator.

 

Source: UW System Human Resources

2022 Social Security and Medicare Tax

The Social Security Tax wage base will increase to $147,000 in 2022 from $142,800. This means that the first $147,000 of an employee's taxable wages are subject to Social Security Taxes. An Employee and the UW System will each pay 6.2% on taxable wages up to $147,000.

The Medicare Tax remains the same for 2022. Both the UW System and the Employee pay 1.45% on all taxable compensation. Any taxable wages that exceed $200,000 ($250,000 for married couples filing jointly) are subject to an additional 0.9% tax.

Source: UW System Human Resources

WRS News Online, November 2021

External link: https://etf.wi.gov/news/wrs-news-online/issue/18581

What is an Explanation of Benefits?

An Explanation of Benefits (EOB) is a statement that shows claims information about the services provided during your health and dental appointment visits. An EOB is created by your insurance carrier to show you how much services cost, what portion of your claim was paid by insurance, any discounts (for obtaining services within an approved network of providers), and the amount that is your responsibility to pay. Your EOB will also show how much of your deductible and out-of-pocket has been met for the calendar year.

Review the following samples for what to expect on an EOB:

How do I access my EOB and who should I contact with questions?

You may access your EOB by logging into your health or dental insurance plan carrier’s website. If you have questions about the information on your EOB, you should contact your health or dental insurance plan carrier. The website and contact information may be found on your EOB or your insurance cards.

When should I expect an EOB?

You should expect an EOB every time you obtain medical or dental services. It is important that you show your health or dental insurance ID card whenever you receive services. It may take a few weeks for your insurance carrier to send you your EOB.

Do I need to submit payment to my doctor’s office or dentist’s office when I receive my EOB?

An EOB is not a bill. Your doctor or dentist will send you an invoice after they receive payment from your insurance. The invoice sent to you by your doctor or dentist should match the amount indicated as your responsibility on your EOB.

What should I do with my EOB?

Review your EOB for accuracy and save it in a secure place since it contains personal health information. Remember that EOBs may be used for the following:

  • If you are enrolled in a Health Savings Account (HSA), your EOB is an ideal document to:
    • Estimate how much to contribute to your HSA. Since an HSA is a component of your High Deductible Health Plan, it is important to be financially prepared to pay 100% of most services, except preventive services, before you meet your deductible.
  • If you are enrolled in a Flexible Spending Account (FSA), your EOB is an ideal document to:
    • Substantiate your claims with the FSA administrator
    • Estimate how much to put into your FSA on an annual basis

Reminder: Save your EOBs as documentation to show you are using your funds for IRS eligible expenses.

Source: UW System Human Resources

Health Plans: High Deductible vs Non-High Deductible

This article highlights the similarities and differences of the High-Deductible Health Plan (HDHP) and Non-HDHP.

Similarities between the HDHP and Non-HDHP

  • In-network preventive services are covered at 100%
  • Coverage for federally required preventive drugs at 100%
  • Both have a deductible
  • In-network coinsurance is 10% (the amount you pay after the deductible for specific services; the plan pays the remaining 90%)
  • In-network providers will provide lower out-of-pocket expenses than out-of-network providers
  • Both allow participation in the Well Wisconsin program to earn a $150 wellness incentive
  • Both provide an opportunity to enroll in Uniform Dental Benefits for preventive dental services
  • Both offer out-of-network coverage through the Access HDHP and Access Non-HDHP. Note: Access plans are more expensive.
  • Premiums will be deducted from your paycheck regardless of whether you use your health insurance

Differences between the HDHP and Non-HDHP

  • HDHPs have lower premiums
  • HDHPs include a Health Savings Account (HSA) to help you prepare for out-of-pocket expenses. An HSA provides three separate tax benefits:
       o   Contributions are tax-deductible
       
    o   HSA assets may grow tax-free (through interest and/or investing)
       o   Withdrawals for qualified medical, dental, and/or vision expenses are not taxed
  • HDHPs include an employer contribution to the HSA (up to $750 for single coverage, $1,500 for family) which remains in your HSA until you use it
  • Non-HDHP have a deductible for medical services and a separate deductible for pharmacy benefits; HDHPs have a deductible that includes medical services and pharmacy benefits
  • Non-HDHP have an out-of-pocket limit for medical services and a separate out-of-pocket limit for pharmacy benefits; HDHPs have a combined out-of-pocket limit that includes medical services and pharmacy benefits
  • Non-HDHP have lower deductibles

Prepare for expected/unexpected out-of-pocket health, dental, and/or vision expenses

Review the expenses you have incurred in the past calendar year for health, dental, and vision services to help you prepare for the next calendar year. Some of the ways you can save for expected and unexpected out-of-pocket expenses include:

  • With a HDHP you may use the HSA for qualifying medical, dental and/or vision expenses or Limited Purpose Flexible Spending Account (FSA) for qualifying dental, vision, and post-medical deductible expenses. The intent of these accounts is to set aside pre-tax earnings to help pay for qualifying out-of-pocket expenses.
  • With a Non-HDHP you may set aside pre-tax earnings in a Health Care FSA for qualifying medical, dental and vision expenses, or after-tax earnings in a personal account for out-of-pocket expenses.

For additional information, review the UW System Human Resources Employee Benefits website.

Source: UW System Human Resources

WRS Contribution Rates for 2022 to Remain Stable

The Department of Employee Trust Funds (ETF) recently announced the Wisconsin Retirement System (WRS) employee and employer contribution rates effective January 1, 2022. The employee contribution for 2022 will decrease slightly.

The 2022 rates will apply to all paychecks paid in 2022, starting with the January 13, 2022 biweekly paycheck. As a reminder, WRS contributions are taken on a pre-tax basis for state and federal tax purposes.

UW System employee contribution rates are determined by employment category. Most UW System employees are in the General/Teacher/Executive category. Employees with law enforcement or public protection duties (police officers, fire fighters) are in the Protective category.

WRS Contribution Rates
Employee Category General, Teacher and Executive Protectives with Social Security
Year 2021 2022 2021 2022
Employer Contribution 6.75% 6.50% 11.75% 12.0%
Employee Contribution 6.75% 6.50% 6.75% 6.50%
Total Contribution 13.5% 13.0% 18.5% 18.5%

WRS contribution rates change annually, based on investment performance of the WRS and actuarial factors to pre-fund retirement benefits. In general, when investment earnings are greater than expected, contribution rates may decrease the following year. When returns are lower than expected, rates may increase to make up for the shortfall.

Contribution fluctuations are considered normal for retirement systems like the WRS that pre-fund retirement benefits.

For more information visit the WRS web page on the UW System Employee Benefits website.

Source: UW System Human Resources