Insurance deductions taken a week early!!!!

[amiegaines654]

What is the name of your state? Texas

Recently my employer decided to offer insurance benefits. When we signed up, we were told that it would take effect April 1st. Due to the way our pay periods fall, the deductions should not have come out of checks until the pay period of April 4th through April 10th. That check would be paid on April 18th.
Well the dedcutions were taken out of our checks a week early, on April 11th. This means that we paid for medical insurance for the last 4 days of March. They know that they were not supposed to but have been informed that they could get in alot of trouble with the IRS if any employee found out, and pushed the issue.
When I asked my boss, I was told to "shhhhhhhhh, Don't say anything about it".
This makes me very very very mad. I know what they did was wrong, and I don't know if I can sit by and not say anything. I am afraid that if I do make an issue of it, my job will be at stake. As most of you know jobs are not easy to come by right now, and I can't afford to loose my job.

Does anyone have any advise for me???

 

[pattytx]

Not necessarily. Medical insurance premiums are quoted on a monthly basis. If they had waited until the 18th of April to make the first deduction, they would only have 2 deductions to get all of the April contributions. As it is, the company is in the hole for one week's worth of deductions. Deductions do not necessarily need to correspond with the pay period worked . It is much more common for the deductions to correspond with the number of paychecks in the month.

Let's say your portion is $100/month, you are paid weekly on Mondays, apparently. There are 9 months left in the year; that's $900. The deduction would normally be $23.08 per week ($1200 / 52 paychecks). If the deductions started April 18th, the company will have deducted from 36 paychecks for the rest of the year. That comes out to $830.88. So you see the employer would not have collected all of your portion by year-end. Even backing up the start of the deduction would only bring the YTD deductions to $853.96. So the company is ponying up part of your share in the first place.

They may not have realized this when they made the notification of when deductions would start, and it may not have been communicated well, but it's not a legal issue. Move on.

 

[amiegaines654]

Not necessarily. Medical insurance premiums are quoted on a monthly basis. If they had waited until the 18th of April to make the first deduction, they would only have 2 deductions to get all of the April contributions. As it is, the company is in the hole for one week's worth of deductions. Deductions do not necessarily need to correspond with the pay period worked . It is much more common for the deductions to correspond with the number of paychecks in the month.

Let's say your portion is $100/month, you are paid weekly on Mondays, apparently. There are 9 months left in the year; that's $900. The deduction would normally be $23.08 per week ($1200 / 52 paychecks). If the deductions started April 18th, the company will have deducted from 36 paychecks for the rest of the year. That comes out to $830.88. So you see the employer would not have collected all of your portion by year-end. Even backing up the start of the deduction would only bring the YTD deductions to $853.96. So the company is ponying up part of your share in the first place.

They may not have realized this when they made the notification of when deductions would start, and it may not have been communicated well, but it's not a legal issue. Move on.

So why would the Insurance agent say that the company can get in trouble with the IRS??? He is the one that let the company know that what they did was wrong, and that they can get in trouble.

So what I understand from your statement is that I should just be ok with the fact that they took almost $1500 total from all employees for insurance, but those employees were not eligible for the actual insurance.

Our pay periods are a week behind. When the deductions were taken out on April 11th, that time was worked on March 28th through April 3rd. Coverage was not available until April 1st. Explain to me how that is ok

 

[pattytx]

I'm telling you that the deductions do not necessarily correspond with the coverage period. As a matter of fact, they almost never do.

You seem to have an "in" with the insurance agent, so why don't you ask him/her what you can do, if anything?

Considering this is at least the second post you have made complaining about this employer, why don't you just start looking for another job? You obviously are not happy there.

 

[amiegaines654]

I'm telling you that the deductions do not necessarily correspond with the coverage period. As a matter of fact, they almost never do.

You seem to have an "in" with the insurance agent, so why don't you ask him/her what you can do, if anything?

Considering this is at least the second post you have made complaining about this employer, why don't you just start looking for another job? You obviously are not happy there.

That is what I plan to do. Thank you