Reporting Deductions to Payroll

HR Hazel · October 2005

Hi,
I am the HR Generalist for a medium sized org. Our payroll is procesed through the Accounting department. Our payroll system is ADP, so the payroll clerk enters all data. Currently HR receives the benefit enrollment forms and emails accounting what payroll deductions employees need. We are looking for a "better" way of reporting these deductions. They have asked for copies of the enrollment forms, which I am not comfortable with.

How do you report your deductions to payroll? Is there a standard form that could be used?

Thanks for your help!

crawfod · October 2005

We're similar to you, unfortunately. Our intent is to find a vendor who provides a merged Payroll and Personnel system, whereby Personnel will enter new hire info, plus pay changes, benefit rate changes, etc. This would eliminate much of our Payroll Clerk's responsibilities.

For now, at Open Enrollment, we provide Payroll with a runner showing new benefit rates. They manually enter in these rates, and we make sure we balance each month. For new hires or changes, on a monthly basis we provide Payroll with a typed list and the amounts to be withheld. Again, a manual updating and balancing occurs. No special form is used, just the name and amounts to be deducted.

Our enrollment forms do not have the rates on them, so there is no reason for Payroll to see them. I don't know why your Payroll would want copies, unless they want to double check that your department has computed the proper rates.

marc · October 2005

The payroll department reports to me in our org. I want to make sure that every item that impacts an EEs check is documented. There will be no payroll entries without a signed document from an appropriate level person.

In our case, payroll also keeps the personnel files, so the enrollment forms are not a problem, but we do allow lists to be given to payroll with appropriate signature authority - such as a master list of raise percents and amounts.

Payroll probably only wants the documentation for proof. It is reasonable to give them the list, but then the list appears in everyones file. These logistics can be worked out.

jmcaa · October 2005

[font size="1" color="#FF0000"]LAST EDITED ON 10-07-05 AT 08:34AM (CST)[/font][br][br]We have an "Election Form" in which the employee authorizes the Payroll Department to deduct a specific amount for their health insurance premiums. This form has to be completed at the same time as the Health Enrollment Form. The Election Form goes directly to the payroll department and goes in the personnel file.

Basically form is:

"I agree to become a participant in the Health Benefit Plan and to have my salary reduced by the amount shown below in order to convert my salary to health care benefit dollars. I understand that the amount checked below will be deducted from each pay period during this Plan Year."

_____Employee Only at $$/ppd
_____EE and Dependents at $$/ppd

--------------------------------
_____I do NOT want to have my salary reduced and understand I will no longer have health care benefits.

Then a place for name, ss#, location, signature, and date.

Then I have an place for Employer to complete for effective date of insurance and date of first payroll deduction.

crawfod · October 2005

JMCAA, minor detail probably but if the above form is what you use for Section 125 purposes, do you have any wording that includes "pre-tax deduction". Our premium only plan (POP) form has a sentence that says, "Please indicate which benefits you elect to deduct pre-tax by checking the line next to the applicable benefit." I'm no expert in this area, but for employees to be entitled to having their health benefit premiums be tax deductible, having a form clearly stating their intent and understanding seems important. Yours is probably fine.

Reporting Deductions to Payroll

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