Summer Prepay Insurance Premium Deduction Schedule for 2019

Summer prepay insurance premiums will be deducted from April 1, May 1, and/or May 31 paychecks, along with regular monthly insurance premium deductions, for the following employee groups:

  • Academic (9-month) employee who will be returning to UW employment in the fall of 2019
  • Academic (9-month) employee with a summer service/summer session appointment

ATTENTION VISA HOLDERS: Employees in the United States working on a Visa, MUST maintain health insurance coverage during the summer months, or risk losing Visa eligibility. If you have questions about this requirement, contact your human resources office.

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 are not deducted from summer service/summer session earnings.

What if an Employee’s Employment Status Changes?
If an employee’s summer 2019 or fall 2019 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 for assistance in determining their employment termination and insurance coverage end dates.

Employees who anticipate that they will experience any other status change; marriage, adoption, birth, divorce, etc., should contact their human resources office 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. If benefits are canceled due to nonpayment, the next opportunity to add the insurance benefits may be during the fall 2019 Annual Benefits Enrollment period with an effective insurance coverage date of January 1, 2020.

2019 Summer Prepay Deduction Schedule

Important: 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
April 1, May 1, May 31 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 deduction Regular premium deduction PLUS two summer premium deductions.
May 31 Income Continuation Insurance deduction 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.

* Does not include Tax-Sheltered Annuity (TSA) and Wisconsin Deferred Compensation (WDC) deductions. 

* Opt-Out Incentive and Health Savings Account (HSA) employer contribution will continue to be processed during the summer months.

How Will Summer Prepay Appear on Earnings Statements?
Employees should review their earnings statements to ensure that their insurance deductions are accurate for their situation. Summer prepay will appear as a lump sum amount on earnings statements. Deductions taken pre-tax (most medical-related premiums and a portion of State Group Life Insurance premiums) will be added together under ‘Prebtx’ and deductions taken post-tax (most life insurance premiums) will be added together under ‘Preatx.’ Regular benefit deductions for the month will continue to be listed under the plan name.

For questions, please contact your human resources office.

Source: UW Service Center