BN premiums when on unpaid leaves

If employees do not have enough PTO to cover unpaid leaves of absence, we give them the option to pay for their benefit premiums in cash/check weekly, monthly, etc. Since there is no paycheck, the premiums go into arrears and we have been deleting those arrears if the employees stay current. This has been working ok because of the way we calculate Box DD for W2s, but we are changing that process in 2017 and I need a way to account for the full cost of the premiums without actually taking a deduction on a pay check.

Does anyone else allow employees to pay cash for premiums, and if so, how are you accounting for the premium for your W2s (or for history for that matter)?

Thanks

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Infor Lawson Human Resources Group - Discussion

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unknown

We added a deduction code under which we record payments by personal check - External Health Payments. This deduction code is then included in the deduction class for reporting on the W-2.

marty

Carla - how do you set up and process the deduction if there is no paycheck? Do you put a non-cash time record in like UNP so that the system records the External Health Payment deduction (and offsets the employee arrears?) along with the company-paid premium deduction? Thanks!

unknown

If there is no time record, we enter a time record to trigger the PR39 to process. (We do the same thing to process refunds where there are no other time records.) The External Health Payment deduction code is not tied to the benefit plan so the system does not offset the employee arrears. We delete/adjust the arrears manually.

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