keeping track of premiums

mushroomHR

We recently began charging our employees a portion of the monthly insurance premium. All is well as long as the employee is at work and being paid. The problems we are running into is when an employee goes out on disability and has to pay us their share directly--no payroll deduction.

I'd like to know how you keep track of these payments and how much of a grace period you give the employee before your cancel their insurance for non-payment.

When the employee goes out on disability I write them a letter explaining their responsibility to pay the premium. I don't think I should have to call them each week to remind them to send in their check. (Our accounting department wants this paid weekly just as if the employee were having their premium deducted from their paycheck. I'd prefer to do it on a monthly basis however.)

Any help would be appreciated.

POPEYE

>
>I'd like to know how you keep track of these
>payments and how much of a grace period you give
>the employee before your cancel their insurance
>for non-payment.
>
>
Our payroll clerk and staff accountant work together and keep a ledger of payment and then it is put into the proper "paper account".

We give a 30 day grace period. We allow EEs to pay however they wish, weekly, bi-weekly or monthly. We do advise the EE at the beginning of their leave time what their responsibilities are and the consequences concerning cancellation if they fall more than 30 days behind.

E Wart

We too keep up with this manually. However, if there isn't funds from paycheck, we also allow them to wait and pay us when they return to work and we "double up " on the payments until paid back. Our insurance is paid with pre-tax dollars and if you have them pay you for it, you get into a mess with the "pre-tax". They understand that this is a financial responsibility. So far haven't had that hard a time with getting the money.
E Wart

TN HR

Same as E Wart except we also allow employees to pay up front, through payroll deduction. It appears to work well.

Gene