09-P-040 Discontinuation of Employer Group Health Insurance Contributions Moratorium (Supersedes 09-P-026)
|DATE:||June 25, 2009|
|SUBJECT:||Discontinuation of Employer Group Health Insurance Contributions Moratorium|
|EFFECTIVE DATE:||June 14, 2009|
Resume Collecting Employer Contributions for Group Health Insurance Beginning with the Pay Period June 14 to June 27, Paid July 10, 2009
Senate Bill 23, passed in the 2009 legislative session, suspended collections of employer contributions for group health insurance (GHI) for the payroll periods from February 22, 2009 to June 13, 2009. The original GHI moratorium informational circular (09-P-026) stated “…the Division of Accounts and Reports will not collect or remit the employer portion of group health insurance contributions for pay periods that have an original check issue date from March 20, 2009 to June 26, 2009…”. To better explain the legislation, the language in the circular should have read “…the Division of Accounts and Reports will not collect or remit the employer portion of group health insurance contributions for pay periods that have an original on-cycle check issue date from March 20, 2009 to June, 26, 2009…”. To clarify, any supplemental or paycheck adjustments for the effected payroll periods processed in the ‘B’ and ‘C’ off-cycles for the payroll period ending June 13, 2009 should also be included in the moratorium.
Since the moratorium period from SB 23 has expired on June 13, 2009, the Division of Accounts and Reports will now resume collecting and remitting the employer portion of GHI contributions effective with the pay period beginning June 14, 2009 and ending June 27, 2009, paid July 10, 2009.
Please note that the group health insurance contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed for pay period end dates from March 7, 2009 to June 13, 2009 will NOT have the employer portion of GHI contributions. All other prior period adjustments will continue to have the contributions collected and remittances made according to the normal schedule.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect aforementioned changes for all employees for whom SHARP calculates pay. Regent institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll periods noted above.