Mixing
Health benefit deductions following a transition from semi-monthly to bi-weekly payroll
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In a company that is switching from semi-monthly to bi-weekly payroll (good news), there is the transition period that is tricky.
- The last paycheck under the old payroll is on Dec 31 covering pay period Dec 15 - Dec 31.
- The next paycheck under a new payroll comes on Jan 11, and covers a pay period from Dec 24 through Jan 6. So, there is an overlap.
In this new Jan 6 paycheck, employees are paid only for the dates Jan 1 - Jan 6 (since the rest has been paid in the previous paycheck).
However, the healthcare benes deductions are full 2-week amount. The rationale given is that annual benefits are divided by the amount of pay periods in a year and deducted from each paycheck.
I'm not quite getting the math here, and my impression is that healthcare benes deductions should be pro-rated and deducted only for a part of the pay period (Jan 1-6). Am I wrong in my assumptions?
(There is a plan in place to help folks balance their financial commitments during the transition period. It is fair. I am only curious about the logic of misaligned pay and healthcare)
benefits payroll
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
1
down vote
favorite
In a company that is switching from semi-monthly to bi-weekly payroll (good news), there is the transition period that is tricky.
- The last paycheck under the old payroll is on Dec 31 covering pay period Dec 15 - Dec 31.
- The next paycheck under a new payroll comes on Jan 11, and covers a pay period from Dec 24 through Jan 6. So, there is an overlap.
In this new Jan 6 paycheck, employees are paid only for the dates Jan 1 - Jan 6 (since the rest has been paid in the previous paycheck).
However, the healthcare benes deductions are full 2-week amount. The rationale given is that annual benefits are divided by the amount of pay periods in a year and deducted from each paycheck.
I'm not quite getting the math here, and my impression is that healthcare benes deductions should be pro-rated and deducted only for a part of the pay period (Jan 1-6). Am I wrong in my assumptions?
(There is a plan in place to help folks balance their financial commitments during the transition period. It is fair. I am only curious about the logic of misaligned pay and healthcare)
benefits payroll
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
In a company that is switching from semi-monthly to bi-weekly payroll (good news), there is the transition period that is tricky.
- The last paycheck under the old payroll is on Dec 31 covering pay period Dec 15 - Dec 31.
- The next paycheck under a new payroll comes on Jan 11, and covers a pay period from Dec 24 through Jan 6. So, there is an overlap.
In this new Jan 6 paycheck, employees are paid only for the dates Jan 1 - Jan 6 (since the rest has been paid in the previous paycheck).
However, the healthcare benes deductions are full 2-week amount. The rationale given is that annual benefits are divided by the amount of pay periods in a year and deducted from each paycheck.
I'm not quite getting the math here, and my impression is that healthcare benes deductions should be pro-rated and deducted only for a part of the pay period (Jan 1-6). Am I wrong in my assumptions?
(There is a plan in place to help folks balance their financial commitments during the transition period. It is fair. I am only curious about the logic of misaligned pay and healthcare)
benefits payroll
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
In a company that is switching from semi-monthly to bi-weekly payroll (good news), there is the transition period that is tricky.
- The last paycheck under the old payroll is on Dec 31 covering pay period Dec 15 - Dec 31.
- The next paycheck under a new payroll comes on Jan 11, and covers a pay period from Dec 24 through Jan 6. So, there is an overlap.
In this new Jan 6 paycheck, employees are paid only for the dates Jan 1 - Jan 6 (since the rest has been paid in the previous paycheck).
However, the healthcare benes deductions are full 2-week amount. The rationale given is that annual benefits are divided by the amount of pay periods in a year and deducted from each paycheck.
I'm not quite getting the math here, and my impression is that healthcare benes deductions should be pro-rated and deducted only for a part of the pay period (Jan 1-6). Am I wrong in my assumptions?
(There is a plan in place to help folks balance their financial commitments during the transition period. It is fair. I am only curious about the logic of misaligned pay and healthcare)
benefits payroll
benefits payroll
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 19 mins ago
Taras Kaduk
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 19 mins ago
Taras Kaduk
1061
asked 19 mins ago
Taras Kaduk
1061
1061
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Taras Kaduk is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago
add a comment |Â
Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago
Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago
Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago
add a comment |Â
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Taras Kaduk is a new contributor. Be nice, and check out our Code of Conduct.
Taras Kaduk is a new contributor. Be nice, and check out our Code of Conduct.
Taras Kaduk is a new contributor. Be nice, and check out our Code of Conduct.
Taras Kaduk is a new contributor. Be nice, and check out our Code of Conduct.
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Hello Taras and welcome to The Workplace. Have you brought this to the attention of HR? Usually they should be able to answer questions like this, and should have a lot more knowledge of the situation to do so
– rath
12 mins ago