HR News January 12, 2012
Administration and University Relations
Happy New Year!
Drew Benefits: Please review your January paycheck to ensure that a deduction is being taken for each of the benefits you enrolled in during Open Enrollment or as a new employee. Should you find any mistakes or omissions, please contact Fredi immediately at x3795.
New Jersey Benefits: Effective January 1, 2012, the State has increased the wages subject to taxation under the unemployment, temporary disability and family leave insurance programs from $29,600 to $30,300.
Federal Benefits: For January and February only, the employee share of the FICA payroll tax will remain at the reduced rate of 4.2%. The rate will return to 6.2% on March 1 unless an extension is granted by Congress. (The Medicare deduction remains unchanged at 1.45%.) Employer contributions have not changed – Drew will continue to contribute 6.2% of your wages to FICA.
Time Out of the Office. Please note that we are able to capture leave information in Banner that was not available in Aims. Effective January 1, 2012, all monthly and bi-weekly paid staff are required to record the following paid time out of the office: bereavement, vacation, sick, holiday, floating holiday, jury duty, military leave and volunteer leave. In addition, bi-weekly staff are required to record paid time out for marriage and excused absence leave.
Monthly Time Reporting – Important Reminder. Monthly paid staff will be required to report all time used in one month by no later than the end of the following month, e.g., time taken in September must be reported before October 31. You will no longer be able to report time used later in the year. Anyone who neglects to update their records – including that no time was taken — will be required to submit their leave report in writing to their immediate supervisor; both the supervisor and the responsible vice president/provost will be asked to sign the form before the record can be manually updated by HR/Payroll.
Benefits. Premiums for all benefits will be deducted evenly over 9 or 12 months only. This means that if you are currently paid on a 9 months basis, your deductions will take place over 9 months; if you are paid on a 10 or 11 months basis, your deductions for all benefits will be taken over 9 months. Everyone paid over 12 months will have premium deductions taken over 12 months.
Flexible Spending Accounts (FSA). As with all other benefits, FSA for childcare and medical expenses will be set up on a 9 or 12 months basis only. This means that if you are currently paid on a 9 months basis, your deductions will take place over 9 months; if you are paid on a 10 or 11 months basis, your deductions for all benefits will be taken over 9 months. Everyone paid over 12 months will have premium deductions taken over the 12 months.
Life Insurance. The IRS taxes the value of all life insurance that exceeds $50,000. In the past, this tax, which is called imputed income, was taken in one lump sum in December paychecks. With Banner, we are able to withhold this tax on a monthly basis; consequently, the tax will be spread evenly over 9 or 12 months instead of all at once. The code “IMP” indicates the amount of additional taxes deducted to reflect the value of your life insurance.
Health Care Flexible Spending Accounts (FSA)
All participants’ accounts have been pre-loaded with the full amount they have elected to use this year. Under IRS law, medical expenses are reimbursable even if you have not had sufficient amounts withheld from your paycheck to cover the expense.
There are three ways to be reimbursed for eligible health expenses:
Automatic Reimbursement. All FSA accounts have been set up to automatically reimburse you by check for eligible expenses as they are incurred. With this feature, you do not have to take any action – United will automatically send you a reimbursement check. You are not required to use this feature; however, if you do not want the feature you must disable it every year through United’s website (www.myuhc.com). Please note that any participant who does not want this feature – including anyone who was enrolled last year – must update their profile on the website.
Consumer Credit Card. All FSA enrollees were issued a consumer credit card. The card, which looks like a credit card but functions like a debit card, allows you to pay eligible expenses when you receive the product or service. The cards can be used in pharmacies and retail stores, as well as doctor’s offices, as long as the provider is an in-network, registered participant. The credit card must be activated prior to use, but participants are not required to use the card. The cards are good for four years, so if you were enrolled last year, please continue to use the same card. If you enrolled for the first time this year, you will receive a card from United by the end of this month. Please request replacement cards from United directly at www.myuhc.com.
Paper Submission. If you prefer, you can also mail receipts and be reimbursed by check. For a copy of the form to submit to United Healthcare, please go to HR’s Intranet website, click on documents and forms and then FSA.
Please refer to United’s website for additional information about the FSA account!
To ensure that monthly paid faculty and staff are paid correctly, all paperwork, including stipends and new hire benefit enrollment forms, must be received in HR or Payroll no later than the dates shown below. Sorry, but deadlines will be strictly enforced – no exceptions!
January 20 for the January 31 paycheck
February 17 for the February 29 paycheck
Calendar of Events
- M. L. King Jr.’s Birthday Observed
- Monday, January 16 University Holiday
New Faculty and Staff Orientation:
- Monday, January 30 9:00 am – 11:30 am Madison House, Rm 104
- Monday, February 20 9:00 am – 11:30 am Madison House, Rm 104
- Monday, March 5 9:00 am – 11:30 am Madison House, Rm 104
TIAA-CREF Individual Counseling Sessions (by appointment only*)
- Tuesday, January 24 9:00 am – 5:00 p.m. Univ Commons, Rm 207
- Tuesday, February 14 9:00 am – 5:00 p.m. Univ Commons, Rm 207
- Tuesday, March 27 9:00 am – 5:00 p.m. Univ Commons, Rm 207
*To schedule an appointment with TIAA-CREF call 1-800-732-8353