Larry McGee, Director of Administration and Finance, Division of Facilities
Lately, I have heard a lot about how employees’ net pay in their paychecks is less. I’d like to provide you some potential explanations. I’ve gone back through recent articles and am re-transmitting them below. If you are like me, not everyone has time to see or digest the information when it first comes out.
Here is my quick synopsis of what changes I have found that may have effected your paycheck.
- Payroll deduction changes based on Health Insurance enrollment options you selected back in October 2015. These went into effect January 2016.
- Federal Income Tax withholding rates increased effective 1 January 2016.
- You may have changed your elected W-4 (federal withholding) or K-4 (state withholding)
- You may have elected KPERS Optional Group Life Insurance for Children
Here are a couple of other tidbits of information you may not have seen or remember.
- You should have already received a new form that you will have to use when filing this year’s A Form 1095-C is the employer-provided health insurance offer and coverage form. Your government is documenting who has insurance coverage and who does not.
- The State of Kansas Health Care Commission has ruled that health coverage will end the last day of employment and premiums pro-rated, effective January 1, 2016. So when you retire or resign your coverage stops effective that day.
Last but not least, I have inserted the Inclement Weather policy to refresh your memory.
My memory isn’t as good as it used to be. Wasn’t it Ford Lincoln Mercury from the movie “Postman” that said, “Things are getting better, they’re- getting better every day.” A positive outlook is a wonderful thing. Hey, the price of gas at the pump has gone down so we aren’t spending as much money there.
Here are the re-transmission of those articles gleaned over that past few weeks:
WHY IS MY PAYCHECK DIFFERENT IN 2016? By Human Capital Services
Starting this month, changes may be reflected on your paychecks.
Beginning January 2016, the following changes may be reflected on your paychecks. To view your paychecks, access HRIS/Employee Self Service and navigate to Employee Self Service > Payroll and Compensation > View Paycheck.
Payroll Deduction and Tax Changes for 2016
- Health insurance enrollment, flexible spending, health saving account, health reimbursement account changes made during October open enrollment.
- If you see a discrepancy from your October open enrollment and your 2016 payroll deduction, please send a detailed e-mail and copy of your State Employee Health Plan (SEHP) open enrollment e-mail confirmation to email@example.com. This will allow the benefits team to research the discrepancy and make any adjustments as needed.
- The employee contribution to Health Saving Account (HSA) will be deducted from the 1st and 2nd paychecks of each month, beginning with the paycheck issued January 15, 2016.
- Employer Health Savings Account (HSA) or Health Reimbursement Account (HRA) contribution will be paid January 15, 2016 and July 1, 2016. These contributions will each be one-half of the total 2016 KSU contribution. If you are enrolled in Plan C dependent coverage for health insurance, HSA or HRA employer contribution is $2,250.00 for the year. On January 15, 2016 and again on July 1, 2016, K-State will contribute $1,125.00 to your HSA or HRA account for a total of $2,250.00.
- Federal income tax withholding rate changes effective January 1, 2016. Kansas income tax withholding rates remain unchanged for calendar year 2016.
- W-4 (federal withholding) or K-4 (state withholding) changes you made for calendar year 2016.
- You may have premium changes based on the KPERS Optional Group Life Insurance Employee Rate Chart – these changes may be due to a different age bracket or changes to coverage level during the open enrollment period. You may have automatically changed to a different age bracket (for example, from age 44 to age 45) or changed your coverage level during the open enrollment period (for example coverage level from $40,000 to $50,000). Optional Group Life Insurance deduction is taken from the 2nd paycheck of the month.
- You may have premium changes based on the KPERS Optional Group Life Insurance Spouse Rate Chart – these changes may be due to a different age bracket for your spouse or changes to your spouse’s coverage level during the open enrollment period. The optional group life insurance for your spouse may have automatically changed to a different age bracket (for example, from age 44 to age 45) or you may have increased your spouse’s coverage level during the open enrollment period (for example coverage level from $25,000 to $50,000). Optional Group Life Insurance for Spouse deduction is taken from the 2nd paycheck of the month.
- KPERS Optional Group Life Insurance for Child – you may have elected to enroll in the KPERS optional group life insurance for child. Optional Group Life Insurance for child deduction is taken from the 2nd paycheck of the month. The child coverage option and rates are effective January, 2016: child one rate is $1.00 / month and child two rate is $2.00 / month
Form 1095-C employer-provided health insurance offer and coverage form is available
WHO RECEIVES A 1095-C FORM?
Employees eligible for health insurance coverage, including those who decline to participate in the State of Kansas health insurance plan, should receive a 1095-C form for tax filing purposes. The form identifies:
- The employee and the employer
- Which months in 2015 the employee was eligible for coverage
- Minimum monthly premium under the plan
1095-C forms for State of Kansas employees are available to print through the State of Kansas Membership Administration Portal (MAP). K-State employees are able to sign into MAP with their eID and password through HRIS > Employee Self Service> Benefits > Health Insurance Enrollment. When logged into MAP, the 1095-C form is located on the Forms tab on the Account Overview page, under “Tax Forms.”
The 1095-C forms will also be mailed directly to the employee’s mailing address listed in MAP. To view the mailing address, go to “Contact Information” on the Member and Family page tab.
Employees should keep this form with other tax-related documents. It is similar to a W-2 or 1099 form, and will be needed when preparing their 2015 taxes or when providing data to a tax professional.
HEALTH INSURANCE UPDATES FOR 2016
The State of Kansas Health Care Commission has ruled that health coverage will end the last day of employment and premiums pro-rated, effective January 1, 2016. Employees separating or retiring from K-State will have health insurance coverage through the end of the last day they are employed. COBRA coverage and the Retiree coverage will still be available after separation. If you should have specific questions, they may be addressed to firstname.lastname@example.org
INCLEMENT WEATHER POLICY
To prepare for possible extreme weather, please become familiar with the Inclement Weather Policy and Procedures.
If inclement weather declaration becomes active, the following earnings codes will be used for benefit eligible non-essential employees who were scheduled to work, but did not. IWN (Inclement Weather – Nonexempt) and IWE (Inclement Weather – Exempt)
Employees not scheduled to work during the period covered by the Declaration of Inclement Weather, will not be affected by this policy. University Support Staff in temporary positions do not receive Inclement Weather pay.
Employees who work during the period of Declared Inclement Weather shall record hours worked as they normally would, had there not been a Declaration of Inclement Weather.
Employees who received prior approval for authorized leave during the period covered by the Declaration of Inclement Weather shall record the leave they originally requested instead of IWN or IWE.
This policy does not cover hourly student employees. Do not report hours for hourly student employees who did not work during the period of Declared Inclement Weather.
Reporting IWE for exempt employees is optional.