Changes in payroll deductions
Health insurance premiums and a payroll deduction related to life insurance in excess of $50,000 changed this month.
January 26, 2017
Please remember that the health insurance premiums have changed in January and the medical insurance premium holiday was applied in December, so any non-classified staff members with health insurance deductions will see a change in their January net pay when compared to their December net pay.
There is also a small change in the amount of payroll deductions related to life insurance in excess of $50,000. One of the many benefits full-time University employees receive is no-cost life insurance. Depending on your employment class you are awarded a life insurance benefit equal to either one or two times your salary. Any life insurance benefit that exceeds $50,000 is considered taxable wages. Until now the University has reported this benefit in box 1 of your W2, but has not withheld taxes from your earnings. Beginning January 2017, we will begin to deduct the required federal and Medicare taxes. Because of this change in deduction you will see a slight decrease in your January net pay when compared to your December net pay. Most employees will see a change of less than $5 a month, but the deduction is based on your age and annual salary, so it will not be the same for everyone.
Please contact Accounting Services if you have any questions.