Payroll deductions for some benefit plans will not be withheld from paychecks issued on Jan. 2 for bi-weekly paid Medical Center and home health employees, and all weekly paid employees. Benefit selections for 2015 will still take effect on Jan. 1; employees will just not be charged their premium portion until their next paycheck.
Benefit deductions are calculated to be taken out of two checks per month for bi-weekly paid employees, or four checks per month for weekly paid employees. Because January 2015 has five Fridays, bi-weekly paid Medical Center and home health employees and weekly paid employees will receive an extra check.
For these employees, benefits deductions will be withheld from the following paychecks:
- Bi-weekly paid Medical Center and home health employees: Jan. 16 and Jan. 30.
- Weekly paid employees: Jan. 9, Jan. 16, Jan. 23 and Jan. 30.
This adjustment impacts January 2015 deductions only for the following benefits:
- Health, vision and dental insurance;
- Flexible spending accounts (FSAs);
- Short- and long-term disability insurance;
- Accidental death and dismemberment insurance (AD&D); and
- Life insurance.
Retirement plan contributions (both mandatory and voluntary) and premiums for pet, auto and homeowner insurance are not affected and will still be withheld. Employees in these groups hired on or before Dec. 31, 2004, who receive the grandfathered health reimbursement account (HRA) benefit will also not be able to access January’s funds until their second paycheck has processed. This benefit deposits $25 per month into an account that can be used to pay for health expenses.
The regular benefit deduction schedule will resume in February. Bi-weekly paid university central and monthly paid employees are not impacted.
This schedule is a one-time modification from how Vanderbilt typically handles benefit deductions for months during which employees receive an additional paycheck. Usually when this occurs, employees are charged benefit premiums in their first two or four checks, and deductions are not withheld from the last check of the month. We will return to this practice for future months, unless HR communicates otherwise.
If you have questions, contact the Employee Service Center.