Jump to content

Payroll Deduction Question


Recommended Posts

An employer can deduct from wages the cost of a health insurance premium that an employee agrees to.  When an employee is on an unpaid leave of absence pursuant to the Family and Medical Leave Act, the employer must maintain the employee’s health insurance coverage but can require the employee to continue paying his share of premiums.  Since the leave is unpaid, the payment cannot be made via payroll deduction.  Typically, the employer will require the employee to submit checks for payment.  Are there any other options available to the employees for the payment of premiums? For example, can the company permit the employee to catch up on premiums when they return to work via extra payroll deductions?  Would that be a permitted payroll deduction?  Maybe do it as a loan from the Company to the employee? Is it still considered to be a health insurance premium, or has it become a loan that must be repaid to the employer?  Thanks

 

Link to comment
Share on other sites

https://www.nolo.com/legal-encyclopedia/do-i-pay-health-insurance-while-im-fmla-leave.html  

There are multiple choices -- we ask for a check monthly OR a 1 time upfront if we know how long they are going to be out.

Only con of waiting until they come back is if they don't return, it's hard to get those premiums back then.  Even if treated as a loan.... We prefer the "pay as you go" to keep up with the amount owed.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...